Thursday, February 13, 2025

ALGA welcomes ‘solid’ Budget for local government

The Australian Local Government Association (ALGA) has welcomed last night’s Federal Budget as a “solid investment” in the nation’s councils, with local government to receive $3.1 million in Financial Assistance Grants over the next 12 months.

ALGA President, City of Sydney Councillor, Linda Scott said the funding was a vital investment in Australia’s productivity – but more was still needed.

“It’s disappointing that another Federal Budget has passed without the Government delivering on their pre-election promise of ‘fair increases’ to these grants,” said President Scott.

“Local governments will continue to work with the Government to see this happen, returning local government funding to at least 1% of Commonwealth taxation revenue.”

She said councils would miss the Local Roads and Community Infrastructure (LRCI) Program, which was not extended in this year’s Budget.

ALGA President, Linda Scott.

“Our local roads are in a state of significant disrepair, with increasingly frequent natural disasters as a result of dangerous climate change.”

“Established in 2020, the LRCI program has been successful in helping all councils deliver much-needed local infrastructure projects, including libraries, community sporting fields, local roads, parks and playgrounds,” said President Scott.

The demise of the LRCI Program will be partially offset by two new urban funding programs – a $200 million Thriving Suburbs Program and a $150 million Urban Precincts and Partnerships Program, alongside the Growing Regions and Regional Precinct Funds.

“Local governments successfully advocated for the establishment of the $200 million Disaster Ready Fund, to enable us to invest to better prevent damage from natural disasters.”

“Councils are delighted to see the Disaster Ready Fund continued, along with new Flood Warning Infrastructure Network Remediation, allowing councils to better protect our communities from flooding and other natural disasters in the future,” she said.

The Association also welcomed the extension of the Remote Airstrip Upgrade Program, a new $10 million National Waste Education campaign, as well as an extension of $20 million per year supplementary road funding for South Australian councils disadvantaged by the national local roads funding formula.

An overview of the funding for councils in this year’s Budget:

  • $3.1 billion in Financial Assistance Grants$484 million in Roads to Recovery funding
  • $60 million over three years in supplementary road funding for South Australian councils
  • $200 million Thriving Suburbs Program (local governments eligible to apply)
  • $150 million Urban Precincts and Partnerships Program (local governments eligible to apply)$120 million Black Spot Program
  • Additional $13.5 million round of the Remote Airstrip Upgrade Program
  • $236 million over 10 years for flood warning infrastructure (rain gauges)
  • $10 million for a national waste education campaign.

ALGA also welcomed the Government’s $83 million investment in a legislated Net Zero Authority that will help coordinate communities’ transformation to a low carbon economy.

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