Melton and Moorabool residents can start celebrating savings of $96 to $114 with the state government slashing annual fire service levy rates from July 1.
For the past 12 months, the fire services levy has been collected with council rates rather than through home insurance, as it was previously.
The levy is based on a fixed charge and a variable charge based on property value, rather than the level of insurance a home owner purchases, which Western MP Simon Ramsay says is a “fairer way” to fund fire services.
“Good financial management means that we can reduce the levy rates,” he said.
According to state government data, the average Moorabool fire services property levy is about $138, down from $234 – $96 less than the average under the insurance-based levy.
However, Balliang East farmer Chris Sharkey said farms were not the “average property”.
“The charge should be based on our house and sheds, not the bare land and crops, which are already insured.”
Mr Sharkey said while he was happy there was a possible saving, his family was paying “four times” what they would pay with their insurance. “Our fire service levy rate has increased by 400 per cent, and now we’ve dropped 20 per cent.”
Under the reforms, the average fire services levy in Melton for an average property is about $143, down from $257 under the previous insurance-based levy.
Melton resident Nathan Miles said while any reduction was good, Melton council’s recent 4.8 per cent rate hike meant the money would still come from residents’ pockets.
“It’s good news for those struggling to pay their rates, especially considering council has just flogged them with another 4.8 per cent rate increase, but people are still having to pay,” he said.
Melton council’s finance manager, Shan Thurairajah, said council was unable to confirm the savings figures released by Mr Ramsay as it was unaware of how much residents paid under insurance policies.
“Melton council is supportive of a property-based levy if this change brings savings to residents compared to an insurance-based levy.”
In Melton, the 2014-15 fire services levy for ‘commercial’ property is $1063; it’s $950 for ‘industrial’ and $876 for ‘primary production’.
