In 2014, Victorian Labor promised no new taxes.
After 10 years in power, with net debt growing by $59.6 million per day, forecast to reach $188 billion by 2028, the Allan Labor Government introduced its 60th new tax to Parliament.
Labor’s latest proposed tax – the Emergency Services Levy – will replace the Fire Services Property Levy and will cost Victorians an additional $2.1 billion in tax over the next three years, in a cost-of-living crisis.
Rather disingenuously, Labor is spruiking this new tax as supporting volunteer services of the State Emergency Service (SES) and Country Fire Authority (CFA).
In fact, Labor has refused to quarantine tax collected for the SES and CFA, instead confirming money raised from the levy will fund back-office operations of agencies including Triple Zero Victoria, Emergency Management Victoria, and Emergency Recovery Victoria.
This comes after Labor cut $38 million from Triple Zero Victoria in its last budget.
These public service agencies have always been funded from consolidated revenue; Labor now plans to double-tax Victorians for these core services.
I’ve long advocated for increased funding for the SES, including the Lilydale and Emerald SES Units who do tremendous work protecting our community, and the Liberals and Nationals do not oppose the SES receiving funding under the levy.
But, when we asked the government how much money raised from the levy will support SES or CFA volunteers, they flatly refused to answer.
Frankly, it’s outrageous Labor is no longer reserving funds raised by this levy exclusively for frontline emergency services and instead is increasing the tax to cover previous budget cuts to public agencies.
Further, and astonishingly, despite promising SES and CFA volunteers they would be exempt from the levy, the government has admitted volunteers will now be required to pay the levy upfront, then fill out a form for a reimbursement from the government at a later date.
Crazy!
Every Victorian will pay more under this new tax, with farmers being hardest hit.
Residential and commercial property rates will double, the industrial rate will increase 64 per cent, and the primary producer rate will increase a whopping 189 per cent.
By taxing Victorian farmers significantly more, Labor has forgotten that farmers are the very people that help with bushfires and storms in the first place, often using their own equipment. The new tax will cause extreme financial strain on local farmers and will result in higher prices for fresh produce at the shops for all Victorians.
Victorians deserve tax relief, not more taxes, in a cost-of-living crisis.
Imposing its 60th new tax is further evidence of the Allan government’s financial mismanagement, and it is Victorians that are paying the price.
