ESVF will take $60m from regional cities next year

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Debate is scheduled to continue Tuesday in Victorian Parliament’s Upper House on legislation to introduce the new levy.



Regional Cities Victoria (RCV) – a powerful assembly representing Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga – wants the levy dumped, expressing significant concern for residents already struggling with cost-of-living pressures.

RCV has strongly objected to the legislation to the Government, Opposition and the cross bench, warning the ESVF also represented an ongoing and increased cost to local government, both as landowners and in the administering of a significantly more complex program.

Councils will incur costs to alter rates notices and to implement the system changes needed to administer the changed land classifications and proposed exemptions.

It has not gone unnoticed that the first year of the new levy will collect approximately $600m – basically covering what it cost to cancel the Commonwealth Games on regional Victorians.

COMMENTS FROM RCV CHAIR CR SHANE SALI, MAYOR OF GREATER SHEPPARTON:

“Our member councils hold significant concern about the financial impact on residents already struggling with cost-of-living pressures.

“The ESVF is another ongoing cost to local government too, when the revenue base of local government is already unsustainable.

“Councils are already picking up an increasing tab for the state for libraries, school crossings, maternal child health services, kindergarten infrastructure, waste services and environmental protection.

“Meanwhile, regional Victorians look at the tens of billions being poured into metro projects and wonder about the potential of some of that investment in our regions.

“This consistent cost shifting from the state is ultimately borne by our ratepayers, and it has to stop.”

RCV congratulates Albanese Government on re-election 

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Regional Cities Victoria (RCV) congratulates Prime Minister Anthony Albanese and the Australian Labor Party on success at the 2025 federal election.

RCV Chair Shane Sali said RCV cities have the space to grow and prosper.

“What we need is equitable and sustainable investment to fast-track construction of more homes, fill critical jobs, improve resilience to natural disasters and ensure councils are financially sustainable so we can deliver services people rely on,” Cr Shane Sali said.

“RCV has consistently advocated to our federal representatives for policies to address critical workforce shortages, upgrade local roads, and build more homes.”

RCV advocacy pays off with Coalition’s LRCIP commitment

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Regional Cities Victoria (RCV) welcomed today’s $1bn commitment from the Coalition for a revitalised Local Roads and Community Infrastructure Program (LRCIP).

RCV has consistently advocated for more autonomy for councils to fix roads and invest in community infrastructure through non-competitive grants programs like the LRCIP.

“RCV’s persistence for greater, more flexible investment in regional Victoria in the lead up to the federal election is paying off,” RCV Chair Cr Shane Sali said today.

“Safer roads are a priority for RCV councils and the communities they support to ensure everyone gets home safely.”

Cr Sali said providing councils with a stream of funding for community infrastructure was vital for growing populations that rely on council-run facilities.

He said demand for services was placing an increasing burden on local government as population growth in regional cities outpaces all previous forecasts and the ability of councils to build and manage facilities – sporting, libraries, halls, parks, maternal health centres and kindergartens – was limited by revenue caps.

“Giving local councils the flexibility and the autonomy to direct funding where it’s urgently needed is the most efficient and effective way to improve liveability in our regional cities,” Cr Sali said.

“RCV’s vision is for prosperity and enhanced liveability through sustainable growth in regional Victoria, and we will continue to advocate for policies that invest in our economies to support the entire nation,” Cr Sali said.

State Priorities for 2025-26

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Regional Cities Victoria (RCV) is a leadership group dedicated to building a sustainable regional Australia by providing strategic advice, coordination, and advocacy to state and federal governments. We are pleased to submit our ideas and priorities for the 2025–26 Budget.

Comprising the Mayors and CEOs of the ten largest cities in regional Victoria – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool, and Wodonga – RCV is focused on achieving real change in regional Victoria through policy development and implementation. We represent the more than 800,000 Australians that live in these municipalities.

Victoria’s regional cities underpin region-scale economies, liveability, and support the state’s economic growth. People living across regional Australia also rely on regional cities as ‘hubs’ for access to education, health, financial, transport and social services, as well as retail, sport and recreation, and cultural amenities.

Every single day, an extra 35 people call one of our regional cities home. Local governments are at the forefront of responding to this net population growth – in a tight fiscal environment coupled with cost-shifting and revenue caps – while maintaining the liveability for which regional Victoria is renowned.

Regional Cities Victoria’s vision is to develop and advocate for policies that invest equitably and sustainably in our regional cities to support a growing and prosperous Australia.

RCV’s federal priorities for May’s election 

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Addressing critical workforce shortages, upgrading local roads, and fast-tracking construction of more homes are priorities for Regional Cities Victoria heading into this year’s federal election.

RCV Chair Cr Shane Sali, Mayor of Greater Shepparton, said with the right investment and policy settings regional Victoria can house a greater proportion of the state’s population and contribute to the nation’s economic prosperity.

Cautious welcome for 2025-26 Federal Budget 

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Regional Cities Victoria (RCV) Chair Shane Sali has cautiously welcomed the cost-of living relief for taxpayers outlined in the 2025-26 Federal Budget but says broader investment is needed to help regional Victoria prosper.

Cr Sali welcomed budget initiatives for regional areas to deliver more homes, boost health, education and childcare, complete the NBN rollout, and secure greater accountability from banks and supermarkets, but noted Victoria’s share of big-ticket infrastructure investment included $2bn for a suburban railway station and $1bn for a suburban roads blitz.

Victoria’s regions warn of dire shortages in critical local roles

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Like much of Australia, regional Victoria has a shortage of houses. It’s making it harder for young people to buy a first home and stay in our regions, and harder to attract new people for jobs.

Our story is not unique. That’s why there’s a national push to build more houses and units – to make homes cheaper and rentals easier to find and afford.

But long before anyone puts the key in a door and unlocks the great Australian dream, we need things like pipes, poles and paths in the ground – and the experts to put them there.

Federal Priorities for 2025–26

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Regional Cities Victoria is a leadership group dedicated to building a sustainable regional Australia by providing strategic advice, coordination, and advocacy to state and federal governments.

Comprising the Mayors and CEOs of the ten largest cities in regional Victoria – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool, and Wodonga – Regional Cities Victoria is focused on achieving real change in regional Victoria through policy development and implementation. We represent the more than 800,000 Australians that live in these municipalities.

Victoria’s regional cities underpin region-scale economies, liveability, and support the state’s economic growth. People living across regional Australia also rely on regional cities as ‘hubs’ for access to education, health, financial, transport and social services, as well as retail, sport and recreation, and cultural amenities.

Every single day, an extra 35 people call one of our regional cities home. Local government is at the forefront of responding to this net population growth and maintaining the liveability for which regional Victoria is renowned. Regional Cities Victoria’s vision is to develop and advocate for policies that invest equitably and sustainably in our regional cities to support a growing and prosperous Australia.