Vic levy revamp to save $100 million: govt VICTORIAN property owners will save more than $100 million under a revamped fire services levy, the state government says. Treasurer Michael O'Brien says the shift of an insurance-based tax to a property-based one collected by local councils will see Victorian property owners share the cost of fire services, creating a fairer system. Under the existing system the levy is added to building and contents insurance premiums, which attracts additional stamp duty and GST. Under a property-based levy, the additional taxes won't be charged, the government says. Mr O'Brien says households in rural areas will see payments for the levy drop from an average $262 down to $142, while those in metropolitan Melbourne will see costs dip from about $193 to $143. "This is not only a massive tax reform, this is a massive tax saving," Mr O'Brien told reporters on Thursday. The current system is unfair, he said, because those with partial - or zero - insurance on their properties aren't paying their fair share. "It's critical, since everyone benefits ... that every property make a contribution," Mr O'Brien said. The Victorian government has also announced Melbourne's outer western suburbs will receive $72 million to upgrade roads and infrastructure as part of next Tuesday's Victorian budget. The funding includes $16.9 million to begin upgrading Sneydes Road in East Werribee to connect it with regional arterial road networks. There is also $9.6 million for the realignment of Hoppers Lane-Princes Highway intersection to improve safety and $3.1 million for environmental site assessments to get the crown land at the site ready for development. Planning Minister Matthew Guy says the Sneydes Road Interchange will provide unprecedented access to the Princes Freeway, as well as additional entry points to Werribee from the Princes Freeway to spread the load of traffic at the city's main entry and exit points as well as from Geelong. "East Werribee is earmarked as a major employment area, already home to key medical, educational and agricultural facilities," Mr Guy said. The government has also committed $19.1 million for housing support for families. The money will fund the Accommodation Options for Families program for a further four years and help about 3200 families access a range of affordable and appropriate accommodation. Meanwhile, eligible pensioners will receive an additional $50 discount as part of a concession program for the fire services levy, Mr O'Brien says. The reformed levy will impose a fixed $100 charge for residential properties and $200 for all other properties, plus a charge based on the property's value. The reform takes effect from July 1 this year. Insurers face fines of up to $10 million if they continue to charge policyholders for the levy from that date.