Compulsory fire levy from July 2013 for all Victorian property owners

All Victorian property owners will pay a fire levy in the wake of a post-Black Saturday shakeup by the Baillieu government.

From July 2013 all property owners will pay a yearly base fee of $100 for residential property and $200 for commercial, industrial and farming property as well as an as-yet unknown levy based on the capital improved value of the property.

The redesign of the levy comes after recommendations by the royal commission into the Black Saturday bushfires. The levy, which previously only applied to those with property insurance, will pay for the budgets of the Metropolitan Fire Brigade and the Country Fire Authority.

GST and stamp duty charges on the fire levy will also be dropped.

“Under this model all Victorian property owners will fairly contribute to the provision of our state’s fire services,” Premier Ted Baillieu says.

“These changes will ensure everyone contributes a fair share to the fire services, not just those who adequately insure their properties.”

But Property Council of Australia Victorian’s Jennifer Cunich says fewer than 15% of fires start in commercial properties.

“It is unfair to place a disproportionate burden on commercial property owners who have invested in buildings and systems that significantly lower fire risk. Our premium properties are absolutely going to be slugged,” she told Fairfax  Media.

She says Victoria, like other states, needs to set a cap on the levy for commercial property and the changes need to recognise the lower risk of fire in commercial properties.

She estimates a $1 billion property would attract a $830,000 levy, making Victoria a less attractive for investors.

She says the changes to GST and stamp duty are “fantastic”.

The levy will be collected by councils overseen by the State Revenue Office.

State opposition spokesman Tim Holding says because the figures for the variable rate are unreleased, Victorian property owners still have no idea how much they will pay.

“It beggars belief that the government can release the average ... levy for every local government area in Victoria and yet they will not release the variable component percentage on which this levy is based,” he says.