Media Releases

The Nationals Member for Lowan, Hugh Delahunty said that after many years of intense pressure for reform from the Victorian Liberal Nationals Coalition, the tired and out of touch Brumby Government has reluctantly decided to replace Victoria’s inequitable insurance-based Fire Services Levy (FSL) with a fairer property-based system.

“Premier Brumby has completed another huge back flip from his strong stance of opposing  changes to the fire service levy to now agreeing to move to a property based scheme, ensuring everyone contributes to our emergency services including the CFA,” Mr Delahunty said in Parliament today.

“For many years, along with my Nationals and Liberal colleagues, I have lobbied for a more equitable FSL and now it seems that because the Royal Commission has recommended a fairer system the Brumby Government has finally conceded despite its earlier protests.”

Mr Delahunty said that Labor have known for years how unfair and inequitable the FSL has been, and everyone but the Premier has acknowledged that the FSL was a tax that placed a heavy burden on regional Victorians, yet until now Labor has done nothing to address this anomaly.

“In fact, the Premier John Brumby stated in the Parliament in August 2009, that The Nationals policy for a property based levy, was a poll tax, and he thought it was a disgraceful policy”

“Country businesses that pay $1000 for an insurance premium have to pay an additional $840 for the fire services levy. Include GST and stamp duty on top of this and you more than double the cost of the initial insurance premium,” he said.

An example of the costs are:

Premium                                   $ 1,000.00

Fire Services Levy (84%)          $    840.00

GST (10%)                                $    184.00

Stamp duty (10%)                      $    202.40

Total Cost                                 $ 2,226.40

 “John Brumby is trying to rewrite history, because Labor has consistently opposed a property-based fire services funding system and has stifled any moves towards such a system over its 11 years in office,” he said.

Mr Delahunty said Labor has deliberately ignored numerous reports and advice from as far back as 2001 that have said the FSL was inequitable and in desperate need of reform. In recent times the Bushfire Royal Commission and the 2010 Federal Government Henry Tax Review also recommended the abolition of the existing FSL in Victoria.

“Labor has been shamed into action when for years it did not care about the expense of the FSL on Victorians, particularly those in country Victoria who have had to endure ever-increasing FSL rates on their insurance premiums,” Mr Delahunty said.

The Nationals Member for Lowan Hugh Delahunty said the tired and out of touch Brumby Government reluctantly decided to replace Victoria’s inequitable insurance-based Fire Services Levy (FSL) with a fairer property-based system after many years of intense pressure for reform from the Victorian Liberal Nationals Coalition.

“Labor has known for years how unfair and inequitable the FSL has been, and everyone but John Brumby has acknowledged that the FSL was a tax that placed a heavy burden on many Victorians, yet Labor has done nothing until today,” Mr Delahunty said.

“For many years, along with my Nationals and Liberal colleagues, I have lobbied for a more equitable FSL and now it seems that because the Royal Commission recommended it, the Brumby Government has now decided to replace the FSL.  However the changes will not be implemented until July 2012 and I just have to ask, is Mr Brumby’s heart really in the changes to the FSL?” Mr Delahunty asked.

Mr Delahunty said many organisation including VFF, independent retirees and local government have called for change to the FSL.

“John Brumby is trying to rewrite history, because Labor has consistently opposed a property-based fire services funding system and has stifled any moves towards such a system over its 11 years in office,” Mr Delahunty said.

“Even in its official submission to the Bushfires Royal Commission, the Brumby Government said the Commission should not make any recommendations on the matter.”

Mr Delahunty said Labor has deliberately ignored numerous reports and advice from as far back as 2001 that have said the FSL was inequitable and in desperate need of reform including the 2001 Victorian Government’s Harvey business tax review which recommended replacing the FSL with an equivalent property-based levy; the 2003 HIH Royal Commission which recommended the abolition of the FSL; and the 2010 Federal Government Henry Tax Review which also recommended the abolition of the FSL.

“Western Victorians deserve better and it is unfair that the cost of fire services is left to the 75 per cent of Victorians who insure their property.  The Coalition has applied intense pressure on the government for a fairer system and this announcement vindicates our position,” Mr Delahunty said.

“Labor has been shamed into action when for years it did not care about the expense of the FSL on Victorians, particularly those in country Victoria who have had to endure ever-increasing FSL rates on their insurance premiums,” Mr Delahunty said.

The Nationals member for Lowan Hugh Delahunty said today that the Brumby Government must stop procrastinating and accept the recommendation of the Victorian Bushfires Royal Commission to change the Fire Services Levy (FSL).

“For many years, including in Parliament last week, I have lobbied for a more equitable FSL and given that the Royal Commission recommended it should be a property-based charge as well as a report commissioned by the Insurance Council of Australia, concluding the same, why is the Brumby Government opposing a change the levy?,” Mr Delahunty asked.

Mr Delahunty said any organisation including VFF, independent retirees and local government have called for change and it is time this tired and out of touch State Government took action rather than making excuses.

“They have said they were waiting on this Royal Commission report before making a decision on the levy so there is no now no excuse for the Brumby Government to not act to restructure the levy now.”

“The Government has all the information it needed to change the Fire Services Levy so that it relates to property ownership rather than to property insurance.  And it is very disappointing that there was now discussion allowed on this very topic at the Portland community consultation held last week,” Mr Delahunty said.

“Western Victorians deserve better and it is unfair that the cost of fire services is left to the 75 per cent of Victorians who insure their property.

“The Government admits there are issues that need to be addressed in relation to the Fire Services Levy; the Royal Commission and the Henry Review all recommended there needs to be change to the flawed system and it needs to be done now,” Mr Delahunty said.