The Fire Services Property Levy Bill 2012 (Vic) was introduced into the Victorian Legislative Assembly on 28 August 2012. It proposes to implement the Victorian Government’s announcement to impose a fire services property levy on all land in Victoria unless specifically exempted. The new property-based levy is proposed to commence on 1 July 2013 [see below].
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Vic Govt proposes new property-based fire services levy from 1 July 2013
The Victorian Government has proposed a “more transparent property-based levy” to replace the current “insurance-based fire services levy” with effect from 1 July 2013.
- Under the current system, only those who insure their properties make a contribution to funding Victoria’s fire services.
- Victorian Premier Ted Baillieu said the reform would abolish the unfair “tax-on-tax” which sees GST and stamp duty charged on the current fire services levy.
- The reform also introduces a $20m concession scheme for pensioners and veterans.
Under the proposed model, the property-based levy will be applied to all land and buildings including non-rateable property and property owned by local councils. The levy will consist of a fixed component ($100 for residential properties and $200 for commercial, industrial, farming and vacant properties) and a variable component (depending, broadly, on the capital improved value of the property and its location). Councils will collect the levy through rates notices.
The Government also proposes introducing stronger consumer protection laws during the transition period to protect consumers against price exploitation and has announced that it will appoint Professor Allan Fels as an independent Fire Services Levy Monitor to “ensure insurers genuinely pass on savings to their customers”.
Further details are available on the Victorian Treasury website.
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