The Victorian Government’s record $215.5 million budget increase for state emergency services was announced last Tuesday, but the insurance industry is still considering what contribution it’s likely to be expected to have to make.

The funds, revealed in last week’s Victorian State Budget, are intended to improve communications and equipment ahead of the next bushfire season.

The package includes $167 million for improved communication between emergency services and relevant dispatch authorities and $21.1 million to replace 87 Country Fire Authority appliances.

The insurance industry provides about 75% of the financing for Victoria’s fire services through the fire services levy that is attached to insurance premiums.

Industry observers have suggested that may leave insurance-buyers picking up a significant amount of the tab for the extended budget.

Victorian Government spokesmen failed to respond to insuranceNEWS.com.au requests for detailed information.

However, the state budget papers suggest the insurance industry contribution could be limited, with fire services contributions projected to increase just 3.9% to $452.1 million this financial year against $435.3 million last year.