LGA South Australia (LGASA) has called for increased and indexed federal funding to support the maintenance of local road networks across the state.
The association said uncertainty surrounding Supplementary Local Road Funding and rising construction costs were placing pressure on councils’ ability to maintain essential infrastructure.
LGASA President, Heather Holmes-Ross, said South Australia received the lowest level of federal road funding on a per capita and per kilometre basis, despite councils maintaining the majority of the state’s network.
“SA councils maintain 76 per cent of the state’s road network, while costs for materials such as asphalt and rubble have increased significantly,” Mayor Holmes-Ross said.
“Without increased base funding and indexation, particularly in regional areas, councils will struggle to keep pace with rising costs.”
She said fair and predictable funding would enable councils to partner more effectively with the Federal Government on infrastructure delivery and long-term planning.
LGASA has said it is seeking a fiscally responsible funding model that reflects real construction cost increases and supports sustainable asset management.
The association said reliable local roads are critical to supporting national freight and supply chains, defence logistics, renewable energy development, and critical minerals industries in South Australia.
Funding supports projects including:
- Upgrades to local roads and heavy vehicle routes
- Maintenance of rural bridges and high-risk intersections
- Improvements to road safety and hazard management
Regional councils were identified as being among the most affected, due to extensive networks and smaller ratepayer bases.
Mid Murray Council, Chief Executive Officer, Ben Scales, said funding certainty was essential for managing the council’s extensive road network.
“Our 3,386-kilometre network is critical to keeping communities connected and supporting agriculture, tourism, and small business,” Scales said.
“With a smaller population base, a higher share of these costs falls on our ratepayers.
“Reliable, indexed federal funding is essential to maintaining a safe and accessible road network.”
Yorke Peninsula Council Mayor, Kylie Gray, said rising costs were making maintenance increasingly challenging.
“Our council manages more than 3,900 kilometres of roads connecting farming communities, freight routes, and coastal towns,” Mayor Gray said.
“Without continued and increased funding, it will become more difficult to maintain these assets to a safe standard.”
Flinders Ranges Council Chief Executive Officer, Sean Holden, said maintaining transport links in remote areas required sustained investment.
“We manage more than 1,400 kilometres of roads, with only 17 kilometres sealed,” Holden said.
“Supplementary Local Road Funding has been crucial in improving safety, tourism access, and freight connectivity.”
LGASA is calling on the Federal Government to:
- Extend Supplementary Local Road Funding beyond 2025-26
- Apply indexation using the ABS Producer Price Index for Road and Bridge Construction
- Provide long-term legislative certainty
- Invest in a one-off catch-up payment to address previous funding gaps
The association has included these priorities in its federal pre-budget submission and will continue discussions with federal representatives to seek improved funding arrangements.
