Parliamentary Committees

Economic and Finance Committee: Emergency Services Levy 2024-25

Mr HUGHES (Giles) (11:11): I move:

That the fourth report of the committee, entitled Emergency Services Levy 2024-25, be noted.

Under the Emergency Services Funding Act 1998, the Economic and Finance Committee has an annual statutory duty to inquire into, consider and report on the Treasurer's Determination regarding the emergency services levy. The committee must provide a report on the written determinations within 21 days after referral to the committee. This year, the committee received the Treasurer's statement on 27 May.

The Emergency Services Funding Act 1998 compels the Treasurer to include determinations regarding the funding targets required via the levy to deliver emergency services, the expenditure on specific kinds of emergency services and the benefits for South Australians across the state.

The Emergency Services Levy funds the following organisations to deliver vital emergency services across Adelaide and the regions, including the South Australian Metropolitan Fire Service, the South Australian Country Fire Service, Surf Life Saving SA, SA Ambulance, Volunteer Marine Rescue organisations and SA Police.

On 31 May, the Economic and Finance Committee held a public hearing with representatives from the Department of Treasury and Finance, the South Australian Fire and Emergency Services Commission, the Metropolitan Fire Service, the Country Fire Service and the State Emergency Service. The witnesses outlined the funding targets, rate setting and expenditure for the proposed levy for the 2024-25 year. Commensurate with its 21-day obligation under the act, the committee considered the determinations and tabled its report on 6 June. I would like to take this opportunity to thank the frontline responders, staff and volunteers who support, strengthen and serve our communities in times of crisis.

I would like to highlight the key elements of this year's levy and report as noted by the committee. The total expenditure on emergency services for 2023-24 is projected to reach $38.6 million, which is in line with the budgeted expenditure. The total expenditure on emergency services for 2024-25 is projected to be $395.3 million. This will be funded primarily by ESL payments from fixed property of $335 million and mobile property of $52.8 million, in addition to minor revenues of $3 million and $4.5 million in rundown from the Community Emergency Services Fund, including $1.5 million carried over from the previous years. Cash balances in the Community Emergency Services Fund are forecast to be $17.8 million at 30 June 2024. For 2024-25, the government will pay $141.8 million into the Community Emergency Services Fund.

Emergency services levy bills fluctuate depending on a property's value according to the Valuer-General and its purpose and location. In 2024-25 the committee can provide the following examples:

the median residential property price in metropolitan Adelaide has been estimated at $745,000 and, based on this, emergency services levy bills should increase to $157.85—this is approximately $6.55 higher than last financial year;

the median residential property price in regional area 1 has been estimated at $395,000 and, based on this, emergency services levy bills should increase to $95.75—this is approximately $3.45 higher than the last financial year; and

for a $1 million commercial property in metropolitan Adelaide, emergency services levy bills should increase to $1,140—this is approximately $13.70 higher than the last financial year.

Revenue raised by these funding targets will be expended on emergency services, including some of the following new initiatives:

$3.8 million for per- and poly-fluoroalkyl substances (PFAS) remediation and testing, which will allow the Metropolitan Fire Service and Country Fire Service to address identified sites of contamination while further requirements are determined;

$0.9 million for additional funding for the scheduled increase in the superannuation guarantee for emergency services sector workers;

$0.4 million for the funding of the Country Fire Service to undertake a facilities audit of their 425 fire stations across the state and another 30 CFS sites, including group command centres, the state training academy and regional headquarters;

$0.2 million for additional support for Volunteer Marine Rescue associations, funding an estimated 16 primary rescue vehicles; and

$0.2 million to commence construction of a new State Emergency Service facility for the Prospect unit, replacing a leased site that is being sold by the owner.

The committee has fulfilled its obligations under the Emergency Services Funding Act 1998. I would like to thank the members of the Economic and Finance Committee, the representatives from the Department of Treasury and Finance, the Chief Executive of the South Australian Fire and Emergency Services Commission and the Chief Officers of the Metropolitan Fire Service, Country Fire Service and State Emergency Service for their commitment and assistance and their contributions to this process.

Therefore, pursuant to section 6 of the Parliamentary Committees Act 1991, the Economic and Finance Committee recommends parliament note this report.

Motion carried.