The Victorian Government will release a consultation paper next month on a new system to fund fire services in the state.

Victorian Treasurer Kim Wells says the paper will explain the design and implementation of the new fire services levy (FSL) based on property values.

“The position paper will outline the proposed arrangements for key aspects of the new levy, including its design and structure; eligibility for concessions and the most efficient method to phase out the insurance-based model and implement a property-based model,” he said.

“The Government intends to introduce legislation in early 2012 and there will be a transition period that will commence on July 1 that year to allow insurers to phase out the FSL prior to full implementation from July 1, 2013.”

A period of consultation with consumers and industry will follow the release of the paper next month.

“The government will introduce a new levy that ensures all Victorian property-owners pay a fair contribution to our fire services,” Mr Wells said.