FinPro update: ESVF Advocacy update

FinPro welcomes last week’s announcement by the Treasurer regarding important changes to the Emergency Services and Volunteers Fund, as part of the 2025–26 Budget Update. These changes reflect sustained joint advocacy undertaken by FinPro, the Municipal Association of Victoria, and the Revenue Management Association on behalf of the sector over the past year.

As you are aware, FinPro has consistently raised significant concerns regarding the design, administration, and financial impacts of the ESVF on councils and their communities. Through ongoing engagement with the Department of Treasury and Finance, the State Revenue Office, and the Treasurer’s Office, FinPro has provided detailed operational and financial evidence to ensure government understands the real-world implications for councils.

We are pleased to see several outcomes that directly reflect issues raised by our members:

Stability for primary production properties

The Government has confirmed that the variable rate for primary production properties will remain at 28.7 cents per $1,000 CIV for at least the next two financial years.

FinPro has consistently highlighted the impacts of rapid cost shifts on agricultural businesses and rural communities. This announcement provides welcome certainty for councils, ratepayers, and the broader regional economy for the next two years.

Delay to implementation of the non-PPR fixed charge

The Government has also confirmed that the fixed charge for non-primary place of residence (non-PPR) properties will remain unchanged until July 2027.

From the outset, FinPro emphasised that councils needed significantly more time to adapt rating systems, testing processes, workflows, and communications to manage the proposed non-PPR requirements. This delay provides the necessary runway for councils to prepare for any future system changes.

What remains unresolved

While these announcements provide short-term relief, the fundamental design of the ESVF continues to impose significant administrative, financial, and reputational risks on councils.

FinPro maintains that an updated, sustainable funding model is required to ensure ongoing administration of the scheme is properly resourced and does not erode councils’ financial sustainability.

Next steps / Advocacy priorities

FinPro will continue working collaboratively with MAV and RMA in the lead-up to the next State Budget. Our current advocacy focuses on:

• Developing an updated funding model that accurately reflects the true cost of ESVF administration to councils
• Helping ensure that funding is ongoing, indexed, and predictable, to support sustainable implementation
• Minimising unintended cost-shifting and system complexity
• Ensuring government processes are informed by council data and operational expertise.

We will keep members informed as further information becomes available, including any consultation opportunities.

Thank you to all members who have provided insights, data and feedback throughout this process. Your contributions continue to strengthen our advocacy and ensure that the sector speaks with clarity, evidence, and a unified voice.

Kind regards,

FinPro Executive Committee 25/26