Mayors from across Victoria congregated in Melbourne today, expressing concerns that the state government’s newly implemented emergency services tax could push many residents to their financial limits. This tax, amounting to billions of dollars, has placed an unexpected burden on local councils, which are responsible for collecting it on behalf of the government.
Geelong Mayor Trent Sullivan highlighted the challenges councils face, noting that they do not wish to assume the role of tax collectors for the state. Geelong is forced to seek an additional $20 million from its residents to meet the demands of this new levy, while the Gippsland Latrobe council requires an extra $5 million. Sullivan remarked that the councils must adapt their collection methods and enhance their financial hardship policies to manage the changes effectively.
Deputy Mayor Sharon Gibson voiced the concerns of many residents struggling to meet basic needs, stating, “People can’t afford to put food on the table.” In the City of Yarra, Mayor Stephen Jolly mentioned that the council’s obligation feels like they are acting as debt collectors for the state government. Recent rate notices have already been distributed, and the mayor anticipates a significant backlash from the community.
Councils are now exploring possible legal avenues to resist collecting the tax, as they are compelled by the state government’s requirements. Sullivan indicated a collaborative effort among councils is essential to address this predicament, asserting that they are looking into their legal obligations and ways to mitigate the tax’s impact on their operations.
As councils gear up for potential challenges from residents unwilling or unable to pay the new tax, the lack of response from Allan government ministers leaves local leaders feeling unsupported. This collective stance among councils underscores the growing frustration and urgency surrounding the new tax’s implementation.