Fairer Funding Model for Victoria’s Fire Services
A fairer, more equitable funding system for the delivery of Victoria’s fire services will be rolled out from next year, the government announced over the weekend.
Emergency Services and Bushfire Response Minister Peter Ryan said the Fire Services Levy (FSL) will be replaced with a new property based levy and will include concessions for low-income earners, as recommended by the Bushfires Royal Commission.
Mr Ryan said the new levy would ensure property owners pay a fair contribution to fire services, while ensuring Victoria's fire services continue to operate equitably and with sufficient resources.
"Every Victorian understands the need to have well-funded fire fighting services and today's announcement is an important step in the implementation of this new approach," Mr Ryan said.
Treasurer Kim Wells said the FSL unfairly slugged home and business owners, particularly in regional Victoria, and encourages people to under insure - or not insure.
Mr Wells said the government would release a position paper in June and engage in a comprehensive public consultation process. Design and implementation of the new levy and transition arrangements will frame the consultations.
"The position paper will outline the proposed arrangements for key aspects of the new levy including: its design and structure; eligibility for concessions; and the most effective and efficient method to phase out the insurance based model and implement a property based model," Mr Wells said.
The government will introduce the new legislation in early 2012, with a transition period to commence on 1 July 2012, to allow insurers to phase out the FSL prior to full implementation from 1 July 2013.