If you are a property owner in Victoria, whether it be for yourself, your company, or your self managed super fund (SMSF), you are most likely aware of council rates. However, you should always pay attention to the Emergency Services Levy (ESL), which is another line on your rates notification.
ESL was first implemented in 2013 as part of changes in fire services financing, and it has since become an integral part of Victoria’s emergency services funding system, which includes the Fire Rescue Victoria and Country Fire Authority.
What will you have to pay in 2025 under ESVF (Emergency Services and volunteers Levy – Fire Services Property Levy)? This guide covers everything you need to know, whether you’re a residential homeowner or SMSF trustee.
What is Victoria's Emergency Services Levy (ESL)?
The Victorian government collects the Emergency Services Levy, also called the Fire Services Property Levy (FSPL), through your municipal rates notice. It provides funding for emergency and fire services throughout the state.
This levy is still used in 2025 to fund:
- Victoria Fire Rescue (FRV)
- Authority for Country Fires (CFA)
- Additional infrastructure and emergency response activities
In contrast to council rates, which vary by town, the ESL is a state government fee that is uniform throughout Victoria, even though the amount varies based on the type of property and location.
Introducing ESVF – Emergency Services and Volunteers Fund (2025)
A new emergency services and volunteers fund (ESVF) will replace the Fire Services Property Levy (FSPL) in Victoria from 1 July 2025.
Key modifications in 2025:
- Fire services are no longer the only services covered by FSPL. It is now known as ESVF.
- CFA and VICSES volunteers will be eligible for a volunteer rebate on their principal home or farm.
- The vacant land category will be removed, and such land will now fall under its applicable land use type.
- From July 2026, a new property classification system will distinguish between PPR (Principal Place of Residence) and non-PPR residential properties.
How Much is the ESL/ESVF in 2025?
The Capital Improved Value (CIV) and property classification of your property determine how much you pay under the ESVF.
Here’s a general breakdown for 2025:
|
Property Type |
Fixed Charge |
Variable Rate (per $1,000 CIV) |
Avg. Annual Levy |
|
Residential |
$125 |
$0.30 |
~$250–$400 |
|
Commercial/Industrial |
$250 |
$0.60 |
~$800–$1,500 |
|
Primary Production |
$100 |
$0.15 |
~$150–$300 |
|
Public Benefit |
$75 |
$0.10 |
~$120–$200 |
Note: Each council determines the precise rate. Use your local council’s website or rates notice for personalised details.
What SMSF Trustees Need to Know
ESL compliance involves more than simply paying a bill if your SMSF owns real estate. It also entails:
- Making sure you pay on time to avoid fines
- Keeping SMSF in conformity with ATO regulations
- Making accurate expense reports on your SMSF tax return
Even though ESL is a property tax, when the property generates revenue (for example, by being leased out), it is typically deductible as an expense.
How an SMSF Tax Return Accountant Can Help
Hiring a professional SMSF tax return accountant can benefit you in the following ways:
- Ensure ESL and other property-related outgoings are properly recorded
- Avoid costly compliance issues with the ATO
- Understand how the ESL interacts with rental income, CGT, and other deductions
The best SMSF accountant in Melbourne professionals will also ensure you don’t miss details like:
- Allocating ESL if the property is utilized for both personal and professional reasons
- Deduction calculations for several properties owned by a single fund
- Keeping abreast of evolving ESVF thresholds or rates
ESL vs Council Rates: What’s the Difference?
| Feature | ESL (Emergency Services Levy) | Council Rates |
|---|---|---|
| Charged By | the Victorian State Government | Local Council |
| Purpose | Emergency services / Fund fire | Fund local services (roads, bins, etc.) |
| Appears On | Council Rates Notice | Same notice |
Tax-Deductible? Yes, if property is income-producing sometimes (consult your accountant)
When Is ESL Paid?
ESL is paid annually, usually in line with your council rate payment schedule, which may include:
- Full yearly payment
- Quarterly instalments
- Direct debit arrangements
Non-payment may result in interest charges, legal action, or a lien against the property, which can affect the valuation or sale of an SMSF-owned asset.
ESL and Changing Property Values
Because ESL is partly based on property value (CIV), any increase in your property’s value will result in a higher levy. If your SMSF portfolio includes commercial or industrial properties in high-growth suburbs, this can become a significant expense over time.
To manage costs:
- Review your CIV valuation
- If the valuation seems excessive, raise concerns with your council.
- Consult Melbourne’s top tax accountant to get guidance on property taxes in SMSFs.
ESL Reporting on Your SMSF Tax Return
For SMSFs, ESL paid on income-generating properties must be:
- Listed as a cost in the yearly financial statement of your fund
- Appropriately classified in the SMSF yearly report (SAR)
- Supported by appropriate records and invoices
SMSFs that miss or misreport property expenses may trigger an ATO review or face audit risks.
Need Help with SMSF Property Tax Compliance?
Don’t let the Emergency Services Levy catch you off guard. Whether your SMSF owns a single unit or a portfolio of commercial properties, our expert SMSF tax return accountants at LTE Tax are here to help you stay compliant, maximise deductions, and understand every line of your rates notice.
Contact the best accountant in Melbourne has to offer today for a free consultation!
Wrap-Up
In the end, the Emergency Services Levy in Victoria isn’t just another rate—it’s a mandatory tax that impacts property owners across the state, including SMSFs. It is important to stay informed about the ESVF rate, valuation method, and deductibility rules in 2025 so that your self-managed super fund can protect its earnings and remain compliant.
To ensure that your SMSF is on track and your responsibilities are clearly defined, you should work with a reputable SMSF tax return accountant in Melbourne.
