Fire services property levy
From 1 July 2013, the Fire Services Levy has been removed from insurance premiums and replaced by the property based Fire Services Property Levy (FSPL). Collection of the levy is managed by local Councils and collected with council rates, under the direction of the State Government. This means all property owners will contribute a fair share to our fire services, not just those with adequate insurance.
How were Victoria's fire services funded?
Prior to 1 July 2013, the Metropolitan Fire Brigade and Country Fire Authority were funded by a Fire Services Levy that insurance companies applied to building and contents insurance premiums. The amount that policy holders were charged was at the discretion of the insurance companies.
Why is it being changed?
Under the old system, everyone received assistance from the State's fire services, even though not everyone helped fund them. Also, many people paid more than their fair share. The Victorian Bushfires Royal Commission found that the insurance-based levy was unfair and lacked transparency. It recommended replacing it with a property-based levy to make sure all Victorian property owners contribute a fair share.
How much will I contribute?
The Fire Services Property Levy is made up of two parts:
- a fixed charge
- a variable charge based on the property's capital improved value (CIV).
To calculate the amount of FSPL you may be paying or to answer any questions you may have, please visit www.firelevy.vic.gov.au
Are there any concessions?
There is a concession for eligible pensioners and veterans. Also, farmers with multiple properties that operate as a single enterprise can lodge an exemption form to pay a single fixed charge.
Rates concession application
Single farm enterprise exemption application form
How else is it fairer?
As part of the reforms, the Victorian Government has removed the unfair "tax on a tax" that saw GST and stamp duty charged on top of the old levy. Together with the new concessions, this will save households and businesses approximately $100 million each year.
Where do the funds go?
All funds collected by councils will go to supporting Victoria's fire services.