The Victorian Government has backed away from charging farmers its new emergency services levy.
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But it’s only for 12 months.
The news that farmers will be temporarily spared from paying the hiked tax came on Friday as the government expanded drought support statewide.
An extra $37.7 million has been earmarked for drought relief in Victoria as paddocks and dams run dry following low autumn rainfall.
A Victorian drought relief package, which includes $5000 grants, will be made available across the state after previously being limited to 24 local government areas.
Its expansion means all farmers will not pay the increased rate for the expanded emergency services levy in the 2025-26 financial year.
Their rate will remain at the same level as 2024-25 and automatically applied to notices for primary production properties.
The expansion of drought support was based on Bureau of Meteorology and Agriculture Victoria advice that the worse case for May rainfall had been realised, Premier Jacinta Allan said.
“All of Victoria is being now recognised as being affected by drought,” she said on Friday.
Farmers, firefighters and regional councils have been protesting against the Emergency Services and Volunteers Fund for months.
Under the original changes to the levy from July 1, the average annual bill was expected to rise $678 for primary producers and $63 for residential home owners.
Spooked by the backlash, the Allan Government lowered the rate for farmers and introduced rebates for CFA and SES volunteers and life members.
The expanded levy was meant to raise an extra $2.1 billion over the next three years to cover more emergency service agencies in the face of more frequent and intense natural disasters.
Treasurer Jaclyn Symes said the recent tweaks would leave the budget $73 million worse off but she remained confident of delivering an operating surplus of $600 million in 2025-26.
“It doesn't impact any of the commitments that we’ve made,” she said.
“By capping the rate of the Emergency Services and Volunteer Fund for primary production properties, we’re ensuring farmers can remain fully focused on their drought response and recovery.”
The premier will also chair a drought taskforce that includes Ms Symes, Agriculture Minister Ros Spence and Nationals MP Peter Walsh, as well as farming, banking and local government representatives.
“We know there will be more work that we need to do,” Ms Allan said.
VFF president Brett Hosking, who is on the task force, said the government had noticed backlash to the levy and decided to offer farmers a glimmer of hope.
“At a frozen level, we’ve placed our farmers in a position where they can get through the next 12 months,” he said.
Wimmera farmer Andrew Weidemann and United Firefighters Union secretary Peter Marshall — who led the budget day protest when thousands of farmers and firefighters descended on Spring St on May 20 — still want the expanded tax scrapped.
“The laws will remain on the books, and the tax will hang over the heads of every Victorian ... for every year to come,” they said in a joint statement.
Victorian Nationals deputy Emma Kealy said the expanded levy on producers was “unjustified and unfair”, regardless of whether they faced drought conditions or not.
“The latest drought package falls short when it comes to water and fodder requirements farmers have been calling for over several months,” she said.
The drought package and taskforce
Agriculture Minister Ros Spence said the expanded drought package will ensure farmers across the state are able to access grants of up to $5000 to support on-farm drought management improvements, in addition to financial counselling and mental health support.
Recognising the ongoing impact of drought on farmers in the south-west, these payments will be increased to $10,000 across 11 council areas and parts of West Wimmera.
The program will also be expanded to cover water carting activities and pasture re-establishment across Victoria.
Agriculture Victoria’s farm technical and decision-making support has also been made available statewide, supporting farmers to manage the impacts of these increasingly drier conditions.
The government will deliver a further package of support in the coming weeks, informed by a dedicated new Drought Response Taskforce.
The taskforce will include:
- Treasurer and Regional Development Minister Jaclyn Symes.
- Agriculture Minister Ros Spence.
- Water Minister Gayle Tierney.
- Regional Victoria Parliamentary Secretary Michaela Settle.
- State Member for Murray Plains Peter Walsh.
- Victorian Farmers Federation president Brett Hosking.
- Regional Cities Victoria chair Shane Sali.
- Rural Councils Victoria deputy chair Kate Makin.
- National Centre for Farmers Health founding director Susan Brumby.
- CWA Victoria president Jenny Nola.
- Hamilton and District Stock Agents Association president and stock agent representative Heath Templeton.
- NAB regional and agribusiness executive Khan Horne.
- Bendigo Bank corporate and public affairs general manager Robert Musgrove.
The taskforce will be chaired by Premier Jacinta Allan and provide advice on further help for farmers, as well as broader support for impacted businesses and communities.
The taskforce’s first meeting will be held in the first week of June, with a further package of support to be delivered as soon as possible.
– with AAP.