Fire Levy Savings for Some Investors

Changes to the calculation of Fire Services Levy in Victoria will see more than 60,000 property owners save an average of $260 per year.

In an effort to create a fairer collection system, the Fire Services Levy was removed from insurance policies and applied to rates issued by local councils in July 2013.

Under this new system, properties classified as commercial, industrial, primary production, public benefit or vacant property are charged at the higher commercial rate of Fire Services Levy.  However the decision to charge the commercial rate on residential investment flats and short term holiday accommodation has fuelled complaints about some unfair aspects of the new system, causing the Napthine government to change the law to ensure all residential properties are treated in the same way.

This win for consumers is expected to cost the government $15 million and will come into effect from July 2014.

Treasurer Michael O’Brien has said funding to the fire services agencies will not be affected by this change.