Victorian Government freezes new emergency services levy for primary producers

On Friday 30 May, the Victorian Government announced a freeze of the new Emergency Services and Volunteers Fund Levy (ESVFL) for primary producers for the 2025/2026 year.

This offers some relief from the large increases arising from replacement of the old Fire Services Property Levy (FSPL) with the new ESVFL following the recent state budget. 

Effective 1 July 2025, the new ESVFL will replace the FSPL, following the passage of the Fire Services Property Amendment (Emergency Services and Volunteers Fund) Bill 2025 (Vic) by the Victorian Parliament. 

The aim of the bill is for the annual FSPL to be expanded, to support additional emergency service organisations (i.e. Victoria State Emergency Service [VICSES] and Triple Zero Victoria). Property owners will pay this annual levy via council rates. 

Like the previous FSPL, the ESVFL will include two charges and will be calculated as fixed charge + variable charge - concession/exemption (if applicable):  

• A fixed charge, which is higher for non-residential properties than for residential ones 
• A variable charge, which depends on: 
• The type of property (i.e. residential, commercial, industrial, or vacant); and 
• The property’s Capital Improved Value (CIV) — that is, the total value of the land and any buildings on it. 

Eligible CFA and VICSES volunteers will be able to receive a rebate for their ESVFL liability, however this application is limited to one per property (i.e. if multiple shareholders of a Company (which owns a property) are applicable volunteers, only one rebate will be applicable to that property). 

Other applicable concessions include: 

• $50 concession for pensioners and veterans on their liability for their principal place of residence (PPR); and 
• Concession for single farm enterprises. 

A property will be classified under the Australian Valuation Property Classification Code (AVPCC). This code is assigned by the Valuer-General and determines the variable charge and fixed charge the property will be subject to under the ESVFL. Vacant land will no longer be classified as a separate land use category, instead it will be reclassified according to its intended use (i.e. vacant industrial land will be categorized as industrial land). A comparison of current FSPL rates and ESVFL rates for 2025-26 is outlined below in Table 1. 

Table 1 - Comparison of 2024-25 FSPL and 2025-26 ESVFL variable rates (cents per $1,000 CIV) 

Sector	Old FSPL rates (2024-25)			New ESVFL rates (2025-26)
	Variable rate (cents per $1,000 CIV)	Fixed charge ($)	Median liability ($)	Variable rate (cents per $1,000 CIV)	Fixed charge ($)	Median liability ($)
Residential PPR	8.7	132	191	17.3	136	254
Residential non-PPR	8.7	132	191	17.3	136	254
Commercial	66.4	267	748	133	275	1,239
Industrial	81.1	267	859	133	275	1,246
Primary Production (pre-freeze)	28.7	267	621	71.8	275	1,160
Primary Production (post-freeze)	28.7	267	621	28.7	267	621
Public Benefit	5.7	267	320	5.7	275	328
Vacant (excluding vacant residential land)	29.0	267	503	N/A	N/A	N/A

 

Residential - PPR v non-PPR 

For the year beginning 1 July 2025 residential used as a PPR and non-PPR residential properties will be assessed on the same variable and fixed charge rates. However, from 1 July 2026, owners of non-PPR residential properties will face a higher ESVFL, as these properties will be subject to the same fixed charge rate as other non-residential properties.

The impact of the announcement for a residential (PPR or non-PPR) property with a CIV of $2 million is as follows: 

• Levy payable under new ESVFL rates: $482 
• Levy payable under old FSPL rates: $306 
• Increase in levy payable: $176 (plus an additional $139 for non-PPR from July 2026). 

Primary production

The Victorian Government has just announced a temporary freeze to the ESVFL rate applied to primary production land, as at 30 May 2025. This has been done with the aim of proving some relief to the struggling farming community.

This freeze will see the ESVFL remain at the 2024/25 rate for all primary production properties across the state for the coming financial year. We note that this has yet to be included in any amending bill and is therefore subject to approval by the Victorian Parliament.

If the freeze is passed by the Victorian Parliament, then the following would apply to a primary production property with a CIV of $2 million: 

• Levy payable under new ESVFL rates: $841 
• Levy payable under old FSPL rates: $841 
• Increase in levy payable: $0. 

Once the freeze is lifted and the currently legislated rates are applied, then the following would apply to a primary production property with a CIV of $2 million: 

• Levy payable under new ESVFL rates: $1,711 
• Levy payable under old FSPL rates: $841 
• Increase in levy payable: $870. 

Therefore, a person owning a primary production property with a CIV of $2 million can expect to save $870 because of the proposed freeze but may suffer a corresponding increase in future years. 

Primary producers with multiple properties that operate as a single enterprise may be eligible to pay a single fixed charge under the single farming enterprise exemption. 

Impact on commercial and industrial property 

Under the ESVFL commercial and industrial property has been assigned the same variable and fixed charge, making their new ESVFL rates the same for the 2025-26 financial year.

For a commercial property with a CIV of $2 million: 

• Levy payable under new ESVFL rates: $2,935 
• Levy payable under old FSPL rates: $1,595 
• Increase in levy payable: $1,340. 

For an industrial property with a CIV of $2 million: 

• Levy payable under new ESVFL rates: $2,935 
• Levy payable under old FSPL rates: $1,889 
• Increase in levy payable: $1,046. 

How BDO can help 

If you would like more information about the impact of these changes on you or other tax matters, our tax experts in Victoria have developed a calculator to estimate ESVFL liability. Contact us today to find out more. 

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