City ‘rejects $200 fire levy on rates’

JOHN VAN KLAVEREN
GEELONG’S council has refused to collect State Government’s proposed fire services levy, according to a councillor.
Bruce Harwood said council had voted to oppose the statewide imposition on councils to levy and collect the new charge.
The Government proposed changes to the existing insurance-based levy, including using local government for collections.
The new levy was proposed after a Victorian Bushfires Royal Commission asked the Government to provide a property-based levy with concessions for low income earners.
Cr Harwood said administration of the levy could lead to “cash flow exposure” for council.
“Not all of the levy might be collected, so we don’t know whether council is responsible for the shortfall.
“We don’t know what resources are required to undertake this process or the accountability of the system to be put in place.
“Ultimately, councils will take the hit for it. It’s another example of state and federal governments getting us to do their debt collection for them.”
Cr Hardwood said the levy appeared “out of kilter” because a property owner in a fire-prone area paid the same as owners in safer areas.
“It’s difficult to make councils collect a levy we don’t have full confidence in,” he said.
“This is not the best way to rectify issues such as imbalance between what metropolitan and regional property owners pay. There’s been no clear demonstration to the community of the benefits of a higher levy.”
A council report said an average fire services levy would cost $200 as an inclusion to rates notices.
Geelong Chamber of Commerce president Jim Walsh said the Government’s options failed to ensure removal of “inequity” between metropolitan and regional property owners.
“Our submission would seek to have a more-equitable system where regional property owners are not disadvantaged compared to metro property owners.
“A rates based system is clear and provides more equity while catching all property owners.
“We don’t have a strong position on who should collect the levy but any system that leaves regions paying more we would regard as unfair.”