During May, we appeared before the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport as part of the Federal Inquiry into Local Government Funding and Financial Sustainability.

This provided us the opportunity to contribute to this nationally important conversation on the future sustainability of local government.

We advocated for fairer, more sustainable funding arrangements that reflect the real challenges facing regional councils, from maintaining critical infrastructure and managing growing communities, to responding to disasters and increasing service demands.

Local Government is responsible for approximately one-third of Australia’s public infrastructure assets, with roads dominating the asset base. According to ALGA, councils manage between 75-77% of Australia’s road network, with limited ability to raise revenue to maintain them.

As the closest arm of government to the community, we play a vital role in supporting strong, liveable communities, and it’s essential that funding frameworks keep pace with these expectations.

We have been advocating for Financial Assistance Grants to be restored to 1% of Commonwealth taxation revenue, reducing the pressure on local communities to fund essential infrastructure through rates alone. We note that the latest Federal Budget saw the Financial Assistance Grants allocation decrease from 0.51% to 0.49% of Commonwealth taxation revenue. We hope the recommendations arising from this Inquiry will support a return to 1% of Commonwealth taxation revenue for Local Government, enabling councils to deliver the infrastructure and services their communities need and deserve.

Visit our website to read more about our submission