City ‘win’ on fire levy

JOHN VAN KLAVEREN
GEELONG businesses have scored a long, hard-fought victory against a fire services levy, according to the city’s chamber of commerce president.
Jim Walsh said the levy was a “punitive” impost on regional businesses.
State Government has announced a consultation process starting next month on replacing the levy with a “property-based system” to fund fire services.
“We’re pleased there’s progress but we look forward to the release of the consultation process and confirmation it’s a rates-based system,” Mr Walsh said.
“We’re waiting on the detail because there are a number of variables but a rates-based system is what we have been arguing for.
“The current system disadvantages regional businesses versus metropolitan businesses and penalises those that insure over those who do not.”
The fire service levy is charged on insurance holders’ premiums, providing funding of $600 million a year for country and metropolitan fire services.
Mr Walsh said the levy had been up to 70 per cent for regional businesses, which he described as “a staggering level of tax”.
Treasurer Kim Wells said the Government would release a position paper in June before engaging in a “comprehensive public consultation process” on the proposed design and implementation of the new levy.
“The Government intends to introduce legislation in early 2012 and there will be a transition period that will commence on 1 July, 2012, to allow insurers to phase out the FSL prior to full implementation from 1 July, 2013.”