A new independent Grattan Institute report has suggested Federal funding to Australian councils for local road infrastructure should be increased by $1 billion annually.
The Institute’s Potholes and pitfalls: how to fix local roads report recommends increasing federal Financial Assistance Grants to councils by $600 million per year, as well as Roads to Recovery funding by $400 million per year, with both Federal programs to be indexed annually.
Australian Local Government Association (ALGA) President, City of Sydney Councillor Linda Scott said the Federal Government’s Infrastructure Investment Program (IIP) review provided an ideal opportunity to address the Grattan Institute’s recommendations and support councils to deliver safer and more productive roads.
“With the Government looking at our future infrastructure investment pipeline and projects, it’s important this review also considers how we maintain our existing assets,” President Scott said.
“Australian councils manage almost 680,000km of local roads while collecting less than four percent of taxation.
“Local roads are a critical part of our national road network, so we need an urgent national funding solution.”
President Scott said ALGA had consistently advocated for Financial Assistance Grants to be restored to at least 1% of Commonwealth taxation revenue, and for an increase in Roads to Recovery funding.
“This new Grattan Institute research shows federal funding programs aren’t keeping up with the soaring costs of constructing and maintaining roads,” she said.
“More funding for road maintenance will also mean safer roads and will help reduce our unacceptably high national road toll, especially in rural and regional areas.
“Without urgent funding, the state of our roads will continue to decline and only get more expensive to fix.”
The Grattan Institute’s report also highlighted the impact of increased road use – by passenger and freight vehicles – on Australian roads, recommending a $200 million per year fund to help assess and upgrade local roads identified as key freight routes.
