VIC government backs down on controversial emergency services and volunteers levy

ABC NEWS (Australia)

The state government has backed down on the controversial emergency services and volunteers levy, removing some key elements of the new tax. The decision will soften its impact on farmers and property investors at a cost of nearly half a billion dollars over four years.

Transcript

00:00The message from the bush has been loud and angry.

00:07What do we want?

00:08We have the tax!

00:09The government isn't quite doing that, but it is delaying its tax hikes on farmers.

00:13This is good news for farmers. It recognises the dry conditions.

00:18The Treasurer is also delaying additional charges on Victorian landlords,

00:22amid confusion and anger about how the levy will be collected.

00:25I don't want it to be a debacle. I don't want it to get it wrong.

00:30And I don't have the confidence just yet that we are ready to go.

00:34I guess that's an omission, I suppose, at this point, of the fact they got it rolled.

00:38Outspoken Wimmera farmer Andrew Wiedemann says farmers were facing 184 per cent increases.

00:44We were obviously quite surprised that they made this announcement this early,

00:48but we know they're coming under political pressure.

00:50This will save tens of thousands of dollars from farmers every single year in years to come.

00:55So for two years we've got this reprieve now.

00:58We need to go further. We need to make sure that this is a permanent change.

01:01The back down will cost the budget $466 million over four years.

01:05Despite this, Victoria is on track for a $700 million surplus this year,

01:09a $100 million improvement on May's budget.

01:12There's a marginal improvement on net debt too,

01:14which is still forecast to hit $192.6 billion in three years.

01:20Despite Treasury making more money than expected,

01:22the government hasn't banked the windfall, instead continuing to spend.

01:26What we are seeing today in black and white from the government

01:29is the fact that the state of the finances here in Victoria is in a dire state.

01:34Victoria's interest repayments continue to rise.

01:37This year it's $7.7 billion.

01:39That's $21.2 million every day this year.

01:42In three years it will reach $10.5 billion.

01:45That's $28.7 million every day.

01:48The state of the budget will be on the ballot paper next year,

01:51and this update shows the government intends to keep spending

01:53to deliver its agenda, including using debt.

01:56The opposition wants a fight on fiscal responsibility.

01:59It just has to find a way for that message to cut through.

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