A dividing line in Coopers Street, Epping, has businesses on one
side paying thousands of dollars more for the new fire services levy
than those on the other.
The street is the border between the Country Fire Authority and
the Metropolitan Fire Brigade, which have substantially different levies
based on a percentage of improved capital value.
Businesses on the north side fall in the CFA zone and pay far more than those on the south side covered by the lesser MFB rate.
David Ross, whose company owns the Epping Medical and Specialist
Centre, said his business had been slugged with a $43,400 bill because
the centre was in the CFA zone, but would have been charged $26,500, or
almost $17,000 less, if it was in the MFB zone across the road.
Under the state government’s formula, commercial property owners
in the CFA zone pay 109.2 cents per $1000 of a property’s capital
improved value, while those in the MFB zone pay 60.7 cents.
Mr Ross said when the fire services levy was charged by insurance
companies, his company was charged $17,000 last year. Under the new
scheme, the charge had jumped more than 250 per cent.
He said insurance company assessors took into account elaborate
fire-prevention systems, including fire detection panels linked to the
CFA, when setting the fire services levy.
State MP for Yan Yean, Danielle Green, said the different rates
for outer growth areas such as Epping that straddled CFA and MFB zones
could cost jobs.
“If one side of the road is paying $20,000 more [under the CFA],
then why would they retain a business there – they would be looking at
moving to a MFB area,” Ms Green said. “It will kill jobs in CFA areas.”
A spokeswoman for Treasurer Michael O’Brien said the rate applied
in CFA areas “reflect the larger CFA budget and its coverage right
across regional Victoria”.
The residential rate in CFA areas is 11.5 cents per $1000 of
capital improved value, compared to the MFB rate of 6.9 cents. There
have been reported increases of up to 1000 per cent compared to the levy
applied by insurance companies.
» To check fire levy rates, go to firelevy.vic.gov.au/how-much-will-i-contribute.html
