In a historic show of unity, Cardinia Shire and Casey Council were among more than 30 councils from across Victoria that gathered in Melbourne on 26 July to oppose the state government’s $5.14 billion Environmentally Sustainable Victoria Fund (ESVF) levy.
Councillors heard from University of Newcastle Professor Bill Mitchell on the impact of the reforms, UFU Secretary Peter Marshall on how the tax grab is being accompanied by cuts to fire services for Victorians, and Andrew Weidemann AO on the impact of the tax on regional and rural areas.
The tax grab hits Victorian homeowners, businesses and farmers for an extra $765m per year, bringing total ESVF revenue forecasts to $1.8 billion per year. The government is shifting costs forecast at $1.96 billion per year from consolidated revenue into the levy, effectively accompanying a dramatic tax increase with a cut to funding for emergency services.
The variable rate charged based on Capital Improved Value (CIV) of land more than doubles for
homeworkers and businesses, and triples for farms. Government modelling shows that median rates for homeowners rise from $191 to $254, and rates for businesses rise from $749 to $1240. Median rates for farms rise from $621 to $1299. Because of the large number of small hobby farms, the true rate for commercial farms is much higher.
The tax hit arrives at a time when business conditions and consumer confidence are soft, imposing an extra cost on small businesses struggling to keep the lights on.
United Firefighters Union Secretary Peter Marshall said local governments should not be transformed into de-facto debt collectors for a plan that raised taxes and cut emergency services to Victorians at the same time.
“Local councillors know that the residents and businesses in their area can’t afford this obscene tax grab,” Marshall said.
“They know they depend on emergency services and are alarmed that emergency service funding will be cut back under a cost-shifting plan that uses firefighters as an unwilling alibi for budget repair.
“This meeting will provide a forum to address these concerns and send a message that local homeowners and businesses should not pay for budget repair with their rates, and they should not pay for it with their safety in an emergency.”
Mayor Cr Jack Kowarzik said Cardinia Shire Council has “consistently” expressed concerns with the Victorian Government’s new Emergency Services and Volunteers Fund (ESVF) and the impact it will have on our community.
“Council remains committed to continuing to work with the local government sector to advocate on this important matter and to highlight our collective concerns,” Cr Kowarzik said.
“We are acutely aware of the ongoing cost of living pressures facing our community, and have made our concerns known in relation to the impact of the ESVF.
“At our July Council meeting, Councillors unanimously passed a motion to write to the Treasurer, the Hon. Jaclyn Symes, calling on the Victorian Government to repeal the ESVF and Council’s requirement to collect it.”
Kowarzik added that Cardinia will not stop there.
“We will continue to join with our local government colleagues in voicing our concerns about the levy and its impact on the community,” he said.
“At the MAV State Council in May, we submitted a motion calling for the MAV to note the significant impact on local government and the community.
“I would like to reassure the Cardinia Shire community that Council remains committed to continuing to advocate on this matter to seek a fair outcome for all.
Westernport Ward Cr Trudi Paton said the council is working in this space for the benefit of all people, because this will be an ongoing issue.
“Just because the legislation has passed, doesn’t mean the issue goes away. We’ll continue to minimise the impact for residents wherever we can, and I will continue to fight this,” Cr Paton said.
“I’m committed to liaising with other Councils to share any further progress. Our local community is experiencing a significant level of hardship and we know that cost-of-living is a major issue right now, and this tax just adds to that. Being aware of these challenges, adds energy to our efforts.
“I attended the meeting in my capacity as ward Councillor and I was interested to hear the perspectives of attendees from other councils, who also expressed their concerns with the levy and the impact it would have on their communities.
“Cardinia Shire Council has consistently voiced our opposition to the ESVF tax and concerns around the significant negative impact that the tax will have on already stressed families and businesses.”
City of Casey spokesperson said Cr Shane Taylor attended the Emergency Services and Volunteers Fund (ESVF) meeting of Mayors and Councillors on Saturday 26 July.
“Cr Taylor was invited to the meeting by the United Firefighters Union and attended in a personal capacity as a Ward Councillor.”
Despite their attendance at the rally, both councils under the legislation are still obliged to collect the levy on behalf of the State.
“While this levy will be collected by Council on behalf of the State Government, we remind our community that this is not a Council charge,” Cr Kowarzik said.
“Council encourages ratepayers who are experiencing financial hardship to contact Council to discuss your options.”
