Cuts loom as Emergency Services Levy sparks backlash in Victorian budget

Victorian Treasurer Jaclyn Symes has handed down the 2025–26 State Budget, avoiding broad based tax hikes but introducing a controversial new Emergency Services Levy.

While the government claims the levy will boost funding for disaster response and emergency services, it has drawn sharp criticism from farmers, firefighters and local councils who argue it is unfair and poorly targeted.

Replacing the Fire Services Property Levy, the new measure is expected to raise an additional $2.1 billion over three years.

Local councils will administer and collect the levy from 1 July 2025, with property owners across the state liable. Rates will vary depending on land use and value, and some rural communities are facing increases of up to 150 per cent.

Partial rebates will be available for one property per eligible CFA or SES volunteer or drought-affected farmer.

The budget also includes $11.1 billion in healthcare spending, with $9.3 billion going to hospitals, free public transport for children, and a pause or scale-back of major infrastructure projects in a bid to curb spending and return to surplus.

BDO Tax Partner, Michelle Bennett, said while the absence of new, widespread taxes is a relief after the rapid expansion of recent years, the Emergency Services Levy represents a significant new cost for many.

“The reality is this new levy is another tax increase for rural landholders, already dealing with drought conditions and a challenging global trade environment” Michelle said.

“The burden is being shifted in a way that risks penalising those least able to absorb it, and many already invest directly in private infrastructure or contribute to local volunteer groups in a way that make a real contribution to the needs of their community.”

Michelle also warned that several tax measures announced in previous budgets are now coming into sharper focus. 

“The Vacant Residential Land Tax is expanding in scope, and for those hit two years in a row, the rate doubles to two per cent. That’s $15,000 on a $750,000 vacant property—an amount that will catch some by surprise if they don’t act now.”

Michelle added that more meaningful stamp duty reform remains frustratingly slow.

“The shift into the new Commercial and Industrial Property Tax regime still comes with a final up-front stamp duty hit - and while the extension of the off-the-plan exemption is welcome, more fundamental structural reform is still needed.

For media enquiries:
Tate Papworth 
Manager, Media 
E: Tate.Papworth@bdo.com.au 
Ph: 0433411189