The Victorian Government has reduced its fire services levy (FSL), a year after the charge was removed from insurance premiums and added to council rates.

The average metropolitan household will pay $143 in 2014/15, compared with $193 in 2011/12 when the tax was on insurance.

The average Country Fire Authority (CFA) area householder will pay $142, compared with $262.

The FSL on insurance was particularly high in 2011/12, when the Government raised the levy to fund an increased budget for the CFA.

Insurers also began to raise their charges in 2012 so they did not undercollect before abolition on June 30 last year.

City-based commercial ratepayers will pay $943 from July 1, with no comparison given due to reclassification of investment properties as residential rather than commercial.

The average CFA commercial levy will fall to $823 from $1964 and the industrial levy will be $1389 compared with $4250 in 2011/12.

State Treasurer Michael O’Brien says the new system is fairer.

Deputy Premier Peter Ryan says “farmers are big winners, with their average fire services property levy dropping from $449 to $402”.

FSL Monitor Allan Fels continues to oversee the abolition of the levy on insurance and has issued new guidance clarifying how insurers should respond to overcollection.