A VICTORIAN Government decision to defer for 12 months an increase in the controversial emergency services levy for the state’s farmers has not dulled efforts to scrap the tax.

As part of its drought package announced earlier in May, the government said farmers in 24 drought-impacted local government areas would pay a reduced Emergency Services and Volunteers Fund contribution – capped to the same amount they paid in 2024-25.

On Friday as part of an extension in drought assistance, the government said this will now be extended to all primary production properties in the state – ensuring all farmers can focus fully on their drought response and recovery.

This will mean the ESVF variable rate on primary production properties will remain at 28.7 – the same as it was in 2024-25 – for the duration of the 2025-26 financial year. This reduced rate will be applied to rates notices for primary production properties automatically.

On Friday, the Labor Government also said would deliver a new and expanded Drought Package – supported by an additional $37.7 million in funding. Victorian farmers have been able to access grants of up to $5000 to support on-farm drought management improvements, in addition to financial counselling and mental health support. Recognising the ongoing impact of drought on farmers in the state’s south-west, these payments will be increased to $10,000 across 11 council areas and parts of West Wimmera. The program will also be expanded to cover water carting activities and pasture re-establishment across Victoria. Agriculture Victoria’s farm technical and decision-making support has also been made available statewide, supporting farmers to manage the impacts of these increasingly drier conditions.

The government said it would deliver the further package of support in the coming weeks – informed by a dedicated new Drought Response Taskforce, chaired by Premier Jacinta Allan and to meet for the first time this week.

VFF welcomes drought support and levy pause as ‘a step in the right direction’

The Victorian Farmers Federation welcomed the expanded drought assistance package and the 12-month pause on Emergency Services Levy increases for primary producers.

VFF president Brett Hosking said it represents a step in the right direction as Victoria endures crippling drought conditions across the state.

“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. Farmers and their communities have repeatedly raised concerns, but too often these warnings have been ignored until pressure becomes political.

“This latest package is welcome, but will only make a difference if the support actually reaches those who need it most.

“The government needs to start listening earlier, not months down the track when frustration boils over,” Mr Hosking said.

Mr Hosking said that 12-month pause to the controversial ESL allowed more time to talk with the government.

He 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.

The VFF will continue advocating through the newly formed Drought Response Taskforce and will keep pushing for practical, farmer-informed solutions that reflect the reality on the ground.

Premier Allan said the increasingly devastating effects of drought aren’t confined by postcode or region – its impacting farmers across Victoria.

“It’s why we’re expanding support statewide.

“The new taskforce will bring together Victorians from different communities, different backgrounds and different political parties,” she said.

“Most importantly, it’ll be focused on delivering real relief for farming communities.”

Victorian Treasurer and Minister for Regional Development Jaclyn Symes said by capping the rate of the Emergency Services and Volunteer Fund for primary production properties, the government is ensuring farmers can remain fully focused on their drought response and recovery.

Minister for Agriculture Ros Spence said the funding is about ensuring that no drought-impacted community is left behind, providing immediate relief to farming families across our state.