How much am I contributing?
Contributions are based on a property’s value.
A fixed charge of $105 for residential and $213 for non-residential properties applies for the 2016-17 year as well as a variable cost.
The variable cost is calculated depending on the type of property you own, its capital improved value (CIV) and which fire service covers your area. The variable levy rates for 2016-17 are:
|CFA Variable rates (cents per $1,000 of capital improved value)|
|Vacant (excluding vacant residential land)||49|
|MFB Variable rates (cents per $1,000 of capital improved value)|
|Vacant (excluding vacant residential land)||6.8|
The levy is calculated using the following formula:
Levy = fixed charge + (Capital Improved Value x levy rate) – concession (if any)
The State Government continues to make a statutory contribution of 12.5 per cent of the MFB budget and 22.5 per cent of the CFA budget to fund the state’s fire services
Case studies (2015-16 rates)
Residential property case study 1
Rita lives in a townhouse in Stonnington within the MFB area and her home is worth $595,000. Under the property levy, Rita will pay $155.17 per year. This is made up of the fixed charge of $104 plus $595,000 x 0.0086 per cent.
Residential property case study 2
In comparison, Peter and Jan are pensioners who live in Knox which is in the CFA area. Their house is worth $384,000. Under the property levy, Peter and Jan will pay $109.30 per year. This is made up of the fixed charge of $104, plus $384,000 x 0.014 per cent, less the $50 pensioner concession.
Commercial property case study 1
Mia runs a restaurant in Wangaratta within the CFA region. Her restaurant has a property value of $1,069,000. Under the property levy, Mia will pay $1,268.31. This is made up of a $210 fixed charge plus $1,069,000 x 0.099 per cent.
Commercial property case study 2
Kelly runs a small accounting business in Stonnington within the MFB area. The property has a capital improved value of $750,000. Under the property-based levy, Kelly will pay $701.25. This is made up of the $210 fixed charge, plus $750,000 x 0.0655 per cent.
Farms case study 1
William is a poultry farmer with a farm in Greater Geelong within the CFA region. William’s farm has a capital improved value of $385,000. Under the property levy, William will pay $316.64. This is made up of the $210 fixed charge, plus $385,000 x 0.0277 per cent.
Farms case study 2
Garry and Jean have a grazing business. Their main farm property in Cardinia, within the CFA region, is worth $700,000. They also exclusively occupy a separate parcel of farmland, which is jointly owned by Garry and his father, on which they graze some of their cattle. The second parcel is located 1km to the south of the main property and valued at $522,000. A third parcel, located in the neighbouring South Gippsland local council area and valued at $300,000, is leased by Garry and Jean for use as part of the same grazing business. The lease stipulates that Garry and Jean must pay all rates, levies and charges.
Garry and Jean contacted both the Cardinia and South Gippsland councils to request an application form for the single farm enterprise exemption, as they occupy land in both councils. These councils confirmed that Garry and Jean are eligible for the exemption, and Garry and Jean nominate their main farm property to incur the Fire Services Property Levy fixed charge of $210. The second and third parcels are exempt from the fixed charge due to the single farm enterprise exemption.
Under the property levy, Garry and Jean will pay the $631.59. This is made up of the $210 fixed charge plus the variable rate of 0.0277 per cent will apply on the combined value of all three properties ($1.522,000).