Australia’s 538 local councils have united at the National General Assembly to call on the Australian Parliament to deliver an immediate increase in untied funding, warning the financial sustainability of councils and the services communities rely on are increasingly at risk.
In a powerful show of unity, delegates endorsed an emergency motion calling for fairer funding for local government and backed a joint letter to be tabled with every Member of the House of Representatives and the Senate.
The letter, signed by the presidents of state and territory local government associations, calls for a multi-partisan commitment to a stronger funding partnership with councils.
Australian Local Government Association President, Mayor Matt Burnett, said the motion reflected the shared reality facing councils across metropolitan, regional, rural and remote Australia.
“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,” Burnett said.
“Councils are responsible for the roads, bridges, libraries, pools, parks, footpaths, stormwater systems, waste services and community facilities Australians rely on every day.
“We are also the first people communities call when something goes wrong, whether that is a local road failure, a disaster, a planning issue or a service disruption.
“Yet 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.”
The emergency motion calls on the Federal Government to act now to deliver fairer funding through an immediate increase in untied funding for all councils.
Burnett said Financial Assistance Grants were central to councils’ ability to respond to local priorities 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,” he said.
“For rural, regional and remote councils, the pressures include vast geographic areas, small populations, ageing infrastructure and limited rate bases.
“For fast-growing urban councils, the challenge is keeping pace with demand for new roads, drainage, parks, community facilities, waste systems and other services needed to support housing growth.
“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.”
Burnett said the consequences extended beyond local government, affecting 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 enabling infrastructure are delayed, housing delivery and liveability suffer,” he said.
“This is not just a local government problem. It is a national problem, and it requires a national response.
“Councils want to continue working constructively with the Government, the Parliament and all parties. But the message from this Assembly is unmistakable: local government is united, local government is serious, and councils are calling for action now.”
Mayor Burnett thanked the Australian Services Union (ASU) and United Services Union (USU) for their long support of fairer funding to councils.
ASU National Secretary, Emeline Gaske, said the halving of value of Financial Assistance Grants as a share of national taxation over the past 30 years from one per cent in 1996 to just 0.49 per cent in 2026-27, increased the urgency of the call for fairer funding.
“Council workers keep Australian communities running every single day. They collect our bins, run our libraries, maintain our roads and support communities through floods and fires. They do this work professionally and with commitment, but they need councils that are properly resourced to back them up,” Gaske said.
United Services Union General Secretary, Graeme Kelly, said the shortfall in funding had forced councils to make difficult budget choices.
“The decline in Federal funding has real consequences for the workers and communities who depend on council services. Restoring the 1 percent benchmark is the single most important thing Canberra can do for local government,” Kelly said.
Local Government Association of NSW President, Mayor Darcy Byrne, said, “The financial crisis in local government is leaving many regional communities in particular at breaking point. That’s why we are all united in demanding that enough is enough. This must be fixed.”
WALGA President, Mayor Mark Irwin, said that maintaining untied direct funding through Financial Assistance Grants is critical and ensures local governments can direct resources where they are needed most, reflecting their unique conditions and priorities.
“WALGA will continue to seek ongoing, formula-based and targeted funding for WA local governments – delivering the certainty required for long-term planning and enabling councils to meet the growing and evolving needs of their communities.”
Municipal Association of Victoria President, Jennifer Anderson, said that Victorian councils are united in this call for fairer funding.
“Financial Assistance Grants have been quietly eroding for years, and our communities are now feeling the consequences – in delayed infrastructure, stretched services, and councils forced to make impossible choices. We’re asking the Federal Parliament to act now, before this becomes a crisis communities can’t recover from.”
LGA South Australia President, Mayor Heather Holmes-Ross, said this united call from every state and territory reflects the growing financial pressures being experienced by councils across Australia.
“Financial Assistance Grants are one of the only sources of untied funding available to councils, allowing local communities to determine their own priorities and invest where it is needed most,” she said.
“For South Australian councils, particularly those in regional and rural areas facing growing financial pressures, fairer funding is critical to ensuring communities can continue to access the infrastructure and services they rely on every day.
“We stand with our colleagues across the country in calling on the Australian Government to support a sustainable funding model that recognises the vital role local government plays in Australia’s future.”
Local Government Association of Tasmania President, Mayor Mick Tucker, said that local government is on the frontline of delivering essential services and infrastructure for Tasmanian communities, but the current funding model is no longer keeping pace with growing demand and cost pressures.
“An increase in untied grants is critical to ensuring councils can continue to respond to the unique needs of their communities—particularly across regional and rural Tasmania.
Local Government Association of the Northern Territory President, Peter Pangquee, said that local councils in the Northern Territory serve some of Australia’s most disadvantaged and under-resourced towns and communities.
“These councils are under enormous financial pressure and without a significant funding increase from the Commonwealth Government, inequity will continue and communities particularly in the bush will suffer,” Pangquee said.
Local Government Association of Queensland President, Mayor Matt Burnett, said, “We have been resolute in our call for the Federal Government to return the allocation of Financial Assistance Grant funding to local government to at least one per cent, as the fairest and most effective way of achieving improved financial sustainability for our sector, translating to improved liveability outcomes for every local community.
“Certainty from long term funding that is united and not competitive is critical to all Queensland councils,” he said.
“Councils are in a funding framework that has not changed since 1974. Our nation and its communities have changed; councils can’t afford to be left in the ‘70s with insufficient untied federal funding that is leaving local communities behind.”
