Vic govt caps controversial emergency levy for farmers as drought worsens
30 May 2025
Pic: AgriShots
An article by Natasha Lobban
The Victorian Government has paused major increases to its controversial Emergency Services and Volunteers Fund (ESVF) contribution, as drought conditions intensify across the state.
On Friday, Premier Jacinta Allan announced that a previously introduced cap on the ESVF contribution—initially only for farmers in 24 drought-affected local government areas—will now be extended to all primary production properties for the next financial year. The contribution will be capped at the same amount paid in 2024–25.
Treasurer and Minister for Regional Development Jaclyn Symes said: “By capping the rate of the Emergency Services and Volunteer Fund for primary production properties, we’re ensuring farmers can remain fully focused on their drought response and recovery.”
As the drought has deepened, pressure had been mounting on the government to "scrap the tax", with community anger spilling into protests outside Parliament.
Dozens of fire trucks lined Spring Street, bumper to bumper, in a show of strength as protesters waved signs reading, "I fight fires for free. Now I have to pay for that too" and "Farmers aren't cash cows."
Advice from Agriculture Victoria confirmed that May’s rainfall matched the worst-case scenario projected at the beginning of the month.
Over the past fortnight, most of the state received just 20% or less of the average May rainfall.
The latest outlook from the Bureau of Meteorology suggests these conditions are likely to persist into June. As a result, paddocks and dams remain dry, and fodder prices have doubled.
Friday’s levy announcement formed part of a broader drought support package, which extended access to grants of up to $5,000 for on-farm drought management improvements, as well as financial counselling and mental health services.
These grants will now increase to $10,000 across 11 council areas and parts of the West Wimmera. The program will also be expanded to include support for water carting and pasture re-establishment across Victoria.
A new Drought Response Taskforce has also been convened to develop further support measures. Its first meeting will be held next week, with additional assistance to be delivered as soon as possible.
Victorian Farmers Federation (VFF) President Brett Hosking said it was a step in the right direction as Victoria endures crippling drought conditions across the state.
“This announcement offers a glimmer of hope and is recognition that the pressure we’ve applied is being heard. It’s a step in the right direction, but plenty more remains to be done," Mr Hosking said.
“Pausing the ESL increases for 12 months is the right call, but it doesn’t change the underlying problem: this levy is an unfair cost shift onto farmers.
“We’ll use this extra time to continue making the case that it needs to be scrapped altogether, not simply paused,” Mr Hosking said.
The VFF is continuing to call for the Victorian Government to commit to a long-term, transparent, and genuinely collaborative approach to drought and regional resilience.
Mr Hocking stressed that drought recovery is a long-term process and requires sustained investment beyond seasonal headlines.
“Even if we get rain tomorrow, the financial and emotional scars of drought last for years. We need enduring support, not one-off fixes,” Mr Hosking said.
NEXT WEEK: We have more drought-themed articles, including what SA farmers are asking the Federal Government for, how Victorian farmers are going and what you need to know about fodder during present conditions.
