Change to Fire Services Levy
Published on 12 February 2013
From 1 July 2013, the Victorian Government will require councils across the state to collect a Fire Services Property Levy on their behalf as part of rates notices.
This change follows a recommendation by the Victorian Bushfire Royal Commission and will replace the existing insurance-based funding of the Metropolitan Fire and Emergency Services Board (MFB) and Country Fire Authority (CFA).
Until now, residents and businesses have made fire services contributions through their insurance premiums on property. This typically includes building and contents insurance. People with insurance against fire will from 1 July 2013 no longer pay a levy through their premiums. Instead, it will be charged on your council rates notice.
Monash Mayor Micaela Drieberg said that Monash ratepayers need to be aware that this is an additional charge that will be collected by local government and immediately passed on to the Victorian Government.
"This change will not increase Council's revenue in anyway. We are merely collecting the levy on behalf of the State Government," said Cr Drieberg.
"We have not yet been informed about how much the Fire Services and Property Levy will be on rates notices. We are expecting to know this figure in May when the Victorian Government releases details as part of the 2013 State Budget."
The Victorian Government has announced that the levy rate will vary for different property types such as residential, industrial and commercial. There will be a fixed component ($100 for residential and $200 for non-residential) plus a variable component calculated as a percentage on the capital improved value of a property.
A $50 concession will be available to Department of Veterans Affairs gold card holders and Pensioner Concession Card holders on their principal place of residence.
"If residents have any questions about what this change will mean to their insurance premiums, they should, in the first instance, contact their insurance company," said Cr Drieberg.
The Fire Services Levy Monitor has been appointed by the Victorian Government to oversee that the insurers genuinely pass on the effects of the change to insurance policy holders.
If you have a question regarding how this will affect your insurance, please contact your insurer.