The Latrobe City Council is warning ratepayers they will see a big increase in their rates bills this year because of the fire service levy.
The Victorian Government has changed the way the levy is collected, so it is paid through councils instead of insurance companies.
The Latrobe City's Paul Buckley says it is offering ratepayers a longer period of time to pay their bills to reduce the burden.
He says residents can begin making payments from July 1 to spread the cost out.
"People will see significant increases on their rate notice but we need to understand it will be separately identified on the rate notices and clearly councils are just a collection agency," he said.
"So we'll collect those levies and then pass them straight through to the State Government."