When media headlines scream “Victoria’s property tax set to soar,” it’s easy for investors to feel a ripple of panic. But behind the headline, the numbers tell a very different story, one of marginal cost adjustments, not material disruption. This is a prime example of why investors must tune out the media noise and tune into the fundamentals.

What’s actually changing: From FSPL to ESVF

From 1 July 2025, the Fire Services Property Levy (FSPL) will be replaced by the Emergency Services and Volunteers Fund (ESVF) in Victoria. The tax mechanism remains broadly similar: it’s a statewide levy collected by local councils and appears on your council rates notice, not your land tax bill.

Reference: https://www.dtf.vic.gov.au/emergency-services-and-volunteers-fund

Let’s break down the actual numbers for a typical residential investment property (i.e., non-principal place of residence):

Using a Capital Improved Value (CIV) of $700,000, which is around the Median for Victorian properties, the cost comparison is as follows:

• 2024–25 (FSPL):
  • Fixed charge: $132
  • Variable charge: (700 × 8.7c) = $60.90
  • Total levy: $192.90
• 2025–26 (ESVF):
  • Fixed charge: $136
  • Variable charge: (700 × 17.3c) = $121.10
  • Total levy: $257.10

This equates to an annual increase of $64.20, or about $1.23 per week, before tax deductions.

Context: The broader picture of median impact

According to the Victorian Government’s official figures (https://www.dtf.vic.gov.au/emergency-services-and-volunteers-fund), the median liability for a residential investment property is increasing from $191 to $254, an annual difference of $63.

Crucially, this amount is before tax deductions. Since council rates (which this levy forms part of) are tax deductible for investors, the real out-of-pocket increase is even less, likely around $45 annually for many investors after deductions.

For reference, here’s how other property types compare in median levy increases:

• Commercial: $748 → $1,239 (+$491)
• Industrial: $859 → $1,246 (+$387)
• Primary Production: $621 → $1,160 (+$539)

So when a headline says “set to soar,” it’s important to ask: for whom?

A Victorian investment property example: Still solid

Let’s apply this to a real-world scenario. An investor recently asked whether the increase made their Victorian investment “a little less appealing.”

Here’s the short answer: Absolutely not.

Their Property Investment Asset remains a compelling investment location, and the change in property levy doesn’t touch the core factors that matter:

• Population growth driven by affordability and urban expansion
• Strong rental demand and improving rental yields
• Infrastructure investment (roads, public transport, schools)
• Limited housing supply, supporting capital and rental growth

The extra $64.20 per year in levy cost is a rounding error when you consider properties that generate thousands in annual rental returns and significant capital growth potential.

This change will not impact tenant demand, cash flow strategy, or your ability to build equity.

Why media spin misses the mark

The headline “Victoria’s property tax set to soar” is technically accurate for high-value commercial and industrial properties, which will see hundreds, sometimes thousands, added to their annual liability. But that’s not what the majority of residential investors are holding.

In truth:

• The increase for residential investment properties is uniform and modest
• It does not appear as land tax, which some readers wrongly assume
• As an investment, it is usually tax-deductible, reducing the net impact
• It’s not unique to investors; the change applies to all sectors, including homeowners and public benefit entities

So why the drama?

Because fear sells. And when you’re trying to generate clicks and shares, a scary headline about “soaring taxes” does the job better than “Adjustment to property levy.”

Staying focused: Fundamentals over headlines

Good investing is about tuning out the distractions and staying focused on what truly drives returns.

Ask yourself:

• Has the demand for the location invested in changed because of this tax? No.
• Has the rental yield shifted significantly due to this levy? No.
• Have your long-term growth drivers disappeared? Not even close.

This is why successful property investors filter media commentary through a lens of data, context, and strategic clarity. One year’s policy change doesn’t override a decade-long demographic trend.

What should you do as an investor?

1. Run the Numbers – If you’re concerned, plug the new figures into your property’s cash flow model. Often, you’ll find the change is barely noticeable.
2. Talk to Your Advisor – A quick review can ease your concerns and reaffirm the asset’s position in your portfolio.
3. Ignore the Noise – Don’t get caught up in one-off headlines. Stay focused on your goals and strategy.
4. Look for Opportunities – Ironically, market fear often creates great buying windows. If the media spin spooks others, there may be less competition for strong assets.

Final thoughts

Let’s be honest, no one loves extra costs, no matter how small. But perspective is everything.

The $63 median increase in annual levy for investment properties is not a reason to pivot your investment thesis. It’s a rounding error compared to the value of rental growth, capital gains, and tax benefits of owning well-located real estate in growth corridors like Truganina.

More importantly, it’s a lesson in filtering headlines. Don’t let media noise dictate your investment decisions. Let facts, context, and strategy lead the way.

For further insights on property investment, avoiding common pitfalls and staying informed about market conditions. reach out to John Tsoulos or Frank Pennisi at IFP Advisory on (08) 8423 6176. Your investment success depends on making informed, strategic decisions.

IFP Advisory is an Accredited ASPIRE Property Advisor Network advisor and all professionals are Qualified Property Investment Advisors (QPIA). Property investing is about purchasing a property that aligns with your goals and investment strategy. You should never be sold an investment. Know your numbers! If you invest wisely and strategically, the Australian residential property market can be a rewarding venture.