Emergency Services Property Levy:

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A “Fairer” Tax That Hits Property Harder

The Victorian Government has announced a significant change to the way it funds emergency services.

Effective 1 July 2025, the existing Fire Services Property Levy (FSPL) will be abolished and replaced by a State-imposed Emergency Services Property Levy (ESPL).

We are told this is about fairness, efficiency and transparency.

But when we examine the actual cost increases across a range of property types and land values, it becomes clear that this is just a rebranded tax expansion—plain and simple.

Real Examples Based on Actual Property Values

Here are side-by-side comparisons using indicative levy modelling for five real-world land valuations across common property types in Victoria.

Figures are approximate, based on the publicly outlined structure of the new ESPL system, which includes a fixed charge plus a variable component (calculated per $1,000 of site value).

Example 1 – Residential Owner-Occupied Home

Site Value: $800,000

2023–24 FSPL: $113.00
2025–26 ESPL (Estimated): $176.00
Increase: $63.00 — a 55.8% increase

Example 2 – Residential Investment Property

Site Value: $500,000

2023–24 FSPL: $167.00
2025–26 ESPL (Estimated): $240.00
Increase: $73.00 — a 43.7% increase

Example 3 – Commercial Premises (Retail or Light Industrial)

Site Value: $950,000

2023–24 FSPL: $590.00
2025–26 ESPL (Estimated): $865.00
Increase: $275.00 — a 46.6% increase

Example 4 – Vacant Land (Residential Zone, No Improvements)

Site Value: $500,000

2023–24 FSPL: $0.00 or nominal (many vacant lots exempt)
2025–26 ESPL (Estimated): $168.00
Increase: Entirely new cost imposed under “reform”

Example 5 – High-Value Rural or Commercial Landholding

Site Value: $8,000,000

2023–24 FSPL: $4,790.00
2025–26 ESPL (Estimated): $6,960.00
Increase: $2,170.00 — a 45.3% increase

As shown, nearly all landowners — whether residential, commercial, vacant, or rural — will experience increased annual costs under this model. Properties previously shielded (such as vacant land or low-usage parcels) will now be dragged into the tax net.

This Is Not Reform — It’s Expansion

The rhetoric around fairness fails to address a key fact: emergency services were already funded through the existing Fire Services Levy.

This is not a cost-neutral adjustment — it is a broader and more aggressive form of property taxation, unlinked from council services and administered instead through the State Revenue Office.

We are asked to believe this new model is more equitable, but the figures show it simply charges more, applies to more people, and centralises power further into Treasury.

Who Should Be Concerned?

  • Investors who hold multiple properties across the state

  • SMSF property owners managing assets with tight compliance margins

  • Landholders and developers who previously relied on vacant land exemptions

  • Small business owners with commercial titles now seeing higher fixed and variable charges

  • Farmers and regional owners on large landholdings already hit by land tax reforms

Final Word

There was nothing broken about the previous system except the government’s habit of spending beyond its means.

Now property owners will foot the bill for a solution to a problem they did not create.

In a state already burdened by land tax increases, windfall gains tax, and municipal rate hikes, this levy is just another reason to reconsider property acquisition in Victoria.