MRRA president Tony Sergeant said the state government levy would be the "straw that breaks the camel's back" for residents already struggling in the current economic conditions.

Under the proposed changes, the existing insurance-based levy will be replaced with a property-based levy in a bid to ensure that all homeowners pay a fair contribution to fire services.

At present, homeowners who do not insure their homes do not contribute to the costs paid by those who do. Almost three-quarters of the $650 million required to fund the MFB and CFA comes from insurance companies.

The move comes as a result of recommendations from the Victorian Bushfires 2009 Royal Commission and will come into force in early 2012 before it is fully implemented by July 2013.

Mr Sergeant said while the levy was important and fire services must be funded, it was the burden of the government and not ratepayers.

"I think it is going to be extremely difficult for the ratepayers to absorb this," he said. "It's just the fact that it comes on top of everything else."

With Maroondah's rates already rising by $56 this year, Mr Sergeant said the government and local council would have to realise "people just can't afford it".

"If they expect us to pay it, they're going to have to pull the rug out from other existing expenditure."

During last week's council meeting, Cr Les Willmott moved that the council note, as opposed to support, the proposed levy.

The councillors all opposed the council collecting the levy itself, moving instead that it be the responsibility of the state revenue office.

Cr Willmott added that more time was needed for the full details of the legislation to be clarified.

"I won't say [the government] has rushed this through but there has been very little time to understand it," Cr Willmott said.

"It is incumbent on them to spell it out and have more community dialogue."

Details of the proposed levy are available at dtf.vic.gov.au and submissions from the public close on Friday.