Australia’s councils have taken their call for fairer and more sustainable funding directly to Federal Parliament, warning they cannot continue to deliver growing responsibilities without a stronger financial partnership with the Federal Government.
Appearing before the House of Representatives Standing Committee inquiry into the financial sustainability of local government, Australian Local Government Association (ALGA) President Mayor Matt Burnett said councils across the country were united in calling for long-term funding certainty.
Mayor Burnett said the value of Financial Assistance Grants had fallen from one per cent of Federal taxation revenue in 1996 to just 0.49 per cent in 2026-27, increasing pressure on councils already facing rising costs and growing community expectations.
The appearance follows a joint letter to Federal Parliament, signed by ALGA and every state and territory local government association, calling for fairer funding for Australia’s 538 councils.
“The message is straightforward: local government needs fairer funding to keep delivering for Australian communities,” Mayor Burnett said.
“Councils in cities, regional centres, rural communities and remote areas are all feeling the effects of cost shifting, ageing infrastructure, disaster impacts and growing demand for local services.
“We have put that message in writing to the Australian Parliament, we have taken it to the Speaker, we raised it at our National General Assembly, and today we put it directly before the Financial Sustainability Inquiry.”
Mayor Burnett said the release of ALGA’s 2026 National State of the Assets Report reinforced the scale of the challenge facing councils, identifying up to $280 billion in infrastructure renewal and upgrade demand over coming decades.
The report found assets in poor to very poor condition represent a replacement task of between $65 billion and $68 billion nationally, while assets currently assessed as fair represent a further $173 billion to $212 billion in future renewal and upgrade demand.
“Councils manage essential local roads, bridges, drainage, community facilities, parks and public spaces that underpin everyday life and national productivity,” Mayor Burnett said.
“But they can’t meet the scale of this renewal challenge alone, particularly when they are also being asked to support housing growth, respond to disasters and maintain the services communities depend on.”
Mayor Burnett also said proposed changes to disaster recovery funding were adding to councils’ concerns.
“Councils are on the frontline from the first hours of a disaster, clearing roads, restoring essential infrastructure and helping communities recover,” he said.
“We are now seeing serious concerns from councils about proposed changes to disaster recovery funding. Reforms should not see any council go backwards as a result of changes intended to improve the system.”
Mayor Burnett said councils were committed to working with the Federal Government to deliver national priorities, provided funding arrangements reflected the scale of the task.
“Councils are ready to work with the Federal Government on housing, productivity, resilience, roads, disaster recovery and stronger communities,” he said.
“But that partnership must be matched with funding arrangements that recognise the scale of the task.”
