The Australian Local Government Association (ALGA) is calling on the Federal Government to deliver real budget relief to councils struggling to support communities through the combined impacts of the fuel and inflation crises.
ALGA President and Gladstone Mayor, Matt Burnett said fuel costs were biting deep for communities also struggling under multiple interest rate rises and unchecked inflation.
“Every year, we put out the same call for councils to be fairly funded, but this year the situation for local governments is critical,” President Burnett said.
“Councils are counting every dollar right now, trying to make sure they can still cover essential services, while watching costs outstrip their budgets. Every decision is now a trade-off between maintaining roads, funding services or investing in future growth.
“Budgets were already stretched to the limit, but the cost of fuel impacts every area of service delivery, and there is no relief in sight. Without additional support, councils will be forced to delay construction and maintenance, scale back services or pass costs on to their communities.
“Ratepayers are already facing cost increases from the extra burden the Fair Work Commission’s fuel cost recovery order puts onto local government.
“Councils are at breaking point. We have zero room to move.”
President Burnett said the Association recognises the Federal Government is working hard to minimise economic damage to Australia through the fuel crisis, including today’s announcement by the Prime Minister of Budget measures aimed at improving fuel and fertiliser security.
However, he said councils needed targeted Budget relief as they faced mounting costs.
“Tuesday’s Budget is an opportunity for the Federal Government to back Australian communities with funding injections for housing infrastructure, roads and natural disasters,” he said.
ALGA’s Federal Budget submission called on the Government to recognise that councils are critical partners in delivering national priorities, but are being asked to do more with less.
“Backing local government means backing local communities,” President Burnett said.
“This Budget needs to help keep services accessible and infrastructure on track. Australian communities are resilient, but right now we’re seeing them struggling.
“At a time like this, communities need certainty, and that starts with giving councils the support they need to keep delivering for the people they serve.”
ALGA’s Budget is calling for:
Housing-enabling infrastructure
ALGA is calling for $1.1 billion per year in sustained funding for housing-enabling infrastructure, including local roads, water and stormwater systems and community facilities, to unlock supply and support delivery of the national target of 1.2 million homes.
“Without the building block infrastructure communities need, councils can’t bring forward new developments at scale. It delays growth in housing supply and deepens cost pressure on both councils and Australians needing homes,” said President Burnett.
Community infrastructure
ALGA is seeking $500 million per year to invest in local community infrastructure such as libraries, recreation facilities and community hubs to ensure growing populations are supported by the services and amenities that make communities liveable, connected and economically active.
Safer local roads
ALGA is calling for $600 million per year in dedicated funding for safer roads, including targeted investment in safety upgrades and local government capability, to address rising road trauma and the growing backlog in maintenance across the network that carries the majority of Australia’s traffic and freight.
“Councils maintain the roads carry the nation, but they’re being left to foot an ever-increasing bill. Every dollar not invested in local roads today costs more in repairs, delays and lives tomorrow,” said the ALGA President.
Disaster resilience and emergency management
ALGA is seeking $900 million per year in long-term, formula-based funding for disaster resilience, mitigation and local capability, to shift Australia’s approach from reactive recovery to proactive risk reduction and better protect communities facing more frequent and severe natural disasters.
Climate adaptation
ALGA is calling for $400 million per year to support local climate adaptation and resilience, enabling councils to plan for and respond to the impacts of climate change through place-based solutions that protect infrastructure, communities and local economies.
Financial sustainability (Financial Assistance Grants)
ALGA is urging the Federal Government to restore Financial Assistance Grants to 1 per cent of Commonwealth taxation revenue, providing councils with a stable, untied funding base to support core service delivery, infrastructure investment and long-term financial sustainability.
“Financial Assistance Grants are the backbone of local government funding. When councils can count on secure financial growth, communities can count on better services, stronger infrastructure and more resilient local economies,” said President Burnett.
