Levy goes as Brumby accepts findings

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30 August 2010

The Victorian Government has agreed to replace the state’s fire services levy (FSL) with a “progressive property-based” levy.

The unexpected announcement by Premier John Brumby on Friday abolishing the FSL – reported in a Breaking News alert by insuranceNEWS.com.au – will bring the state’s fire services funding in line with the rest of Australia, with the notable exception of NSW and Tasmania.

Victoria’s new property-based system, which will include concessions for low-income earners, is scheduled to be in place by July 1 2012.

The exact model for the new levy will be determined in consultation, but will need to satisfy a set of policy principles released by the Government. It is expected to provide the same level of funding as the existing FSL and provide a 50% concession to low income-earners.

But with the Government accepting in full or in part 66 of the 67 recommendations of the 2009 Victorian Bushfires Royal Commission, the abolition of the FSL is not the only significant change that will take place.

Other commitments include new fire-mapping technology and community bushfire warnings, as well as funding for more than 800 new career and seasonal firefighters, and greater support for volunteers.

There will be an initial doubling of fuel reduction burns, tougher maintenance regimes for electricity businesses, high-visibility arson measures and greater funding for community education and preparation.

Some $28.5 million will be spent on better integrating building and planning in bushfire-risk areas, while $6.1 million will be used to reform the organisational structure of the state’s firefighting agencies.

This latest round of commitments, the Brumby Government’s final response to the royal commission’s recommendations, will cost $867.3 million, taking the total cost of new fire measures since the February 7 2009 Black Saturday bushfires to $1.4 billion.

Mr Brumby declined to endorse only one royal commission finding – the “retreat and resettlement” recommendation, which would involve the voluntary acquisition of land in bushfire-prone areas. He said this may isolate communities, put them at greater risk and decrease their economic viability.

[Also see ANALYSIS].