The interim report from the Federal Parliament’s inquiry into local government sustainability has highlighted an urgent need for more funding.
Australian Local Government Association (ALGA) President, Matt Burnett, said that the report confirmed councils are at a breaking point, after years of being asked to do more with less.
“Services and infrastructure that were once the responsibility of state and federal governments are now increasingly being delivered by local government,” Mayor Burnett said.
“We are also stepping up to provide vital local services – including healthcare, childcare and aged care – where it’s not commercially viable for the private sector.
“Building infrastructure for new housing, adapting to a changing climate and mitigating against natural disasters are national priorities being held back by a lack of funding and support for councils.”
Mayor Burnett said that the current funding model for local government is broken and needs to be fixed.
“We look forward to the final report and recommendations, and it’s absolutely crucial the inquiry recommends more support for Australian councils – not just re-cutting the limited and insufficient funding that’s currently provided.
“Competitive grant funding programs disadvantage smaller regional, rural and remote councils, so heading into this year’s election we are calling for new formula-based funding programs that would support all councils to deliver local solutions to national priorities.”
This would include:
- $1.1 billion per year for enabling infrastructure to unlock housing supply
- $500 million per year for community infrastructure
- $600 million per year for safer local roads
- $900 million per year for increased local government emergency management capability and capacity
- $400 million per year for climate adaptation
Mayor Burnett said, “A strong, sustainable local government sector is critical not just for our local communities, but also for the health and productivity of our nation.”
