Local libraries, playgrounds, sporting grounds and community centres are at risk unless the Federal Government addresses the downward slide in Financial Assistance Grants provided to councils, according to the Australian Local Government Association (ALGA).
(ALGA) President, City of Sydney Labor councillor, Linda Scott said the total value of the grants as a percentage of Commonwealth taxation revenue had dropped from 0.6% to 0.55% in the latest Federal Budget.
“Historically Financial Assistance Grants were set at one percent of Commonwealth taxation revenue, and now they are nearly half that amount,” Cr Scott said.
“We need to reverse the slide so our communities continue to get the services and support they need.”
Cr Scott said councils were also calling for an immediate and once-off additional $1.3 billion injection of Financial Assistance Grants to boost local economies.
“Supporting our communities through droughts, bushfires, COVID and floods has put stress on local government budgets across the country.”
“These challenges have compounded an already difficult situation for many councils, particularly in rural, regional, and remote communities with large areas to service but small ratepayer bases.
“Increasing Financial Assistance Grants makes economic sense, and it would enable us to continue to support every community.
“Our call for increased Financial Assistance Grants has been independently assessed, and if funded would create 29,455 jobs and add $4.298 billion per year to Australia’s GDP,” Cr Scott said.
