Local councils nationwide are increasingly likely to go under unless funding relief comes from Canberra.
All 538 local councils made the call at the recent national assembly of the Australian Local Government Association (ALGA).
At the assembly, delegates endorsed an emergency motion calling for fairer funding and backed a joint letter sent to every member of federal parliament, House and Senate.
Full text of their letter to Federal Parliament
AGLA President (and Gladstone Mayor) Matt Burnett says their motion reflects the common reality facing councils across metropolitan, regional, rural and remote regions.
“Financial sustainability is not an abstract discussion for local government. It is about whether councils can keep doing the job our communities expect us to do,” he says.
“Councils are responsible for roads, bridges, libraries, pools, parks, footpaths, stormwater systems, waste services and community facilities (that) Australians rely on every day.”
Cr Burnett says council is often the first ‘go to’ for people when something breaks down whether that is a local road, disaster, planning issue or service disruption.
“Councils are increasingly being asked to do more with less funding certainty, less flexibility,
limited revenue capacity and less ability to plan for the long term,” he says.
The association wants more funding for financial assistance grants which he says is central to councils’ ability to respond because they are untied and flexible.
“Financial Assistance Grants are not just another grant program; they recognise that no two communities are the same and trust councils to make decisions based on local needs,” Cr Burnett says.
LOCAL CONCERNS
He points out that rural, regional and remote councils have to deal with vast distances, small populations, ageing infrastructure and limited rate bases; faster growing urban councils need to keep pace with demand for new roads, drainage, parks, community facilities, waste systems and other services.
“The circumstances differ but the underlying problem is the same: community expectations, costs and responsibilities are rising but the funding partnership is not keeping pace.”
Cr Burnett says their funding plight will affect national productivity, housing supply, freight efficiency, liveability and disaster resilience.
“When councils cannot maintain local infrastructure, productivity suffers. When roads and bridges deteriorate, freight suffers. When essential facilities and infrastructure are delayed, housing delivery and liveability suffer,” he says.
“This is not just a local government problem. It is a national problem, and it requires a national response.”
UNIONS SHOW SUPPORT
At the assembly, Australian Services Union (ASU) national secretary Emeline Gaske says halving the tax value of the grants over the last 30 years, from 1% in 1996, to 0.49%, in 2026-27, increased the urgency of fairer funding.
“Council workers keep communities running every single day. They collect our bins, running our libraries, maintaining our roads and support communities through floods and fires. They … need councils that are properly resourced to back them up,” she said.
United Services Union (USU) General Secretary Graeme Kelly says the funding shortfall is forcing councils into difficult budget choices.
“Restoring the 1% benchmark is the single most important thing Canberra can do for local government,” he says.
