The Australian Local Government Association (ALGA) says the interim report from Federal Parliament’s inquiry into local government sustainability highlights the urgent need for increased funding to Australia’s 537 local governments.
ALGA President, Gladstone Mayor, Matt Burnett said 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,” President 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 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,” he said.
“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; and
- $400 million per year for climate adaptation.
“A strong, sustainable local government sector is critical not just for our local communities, but also for the health and productivity of our nation,” said President Burnett.
The Inquiry undertook extensive consultation with stakeholders including local governments, holding 16 public hearings in regional areas and receiving more than 280 submissions.
The vast majority of local governments that made submissions to this inquiry and participated in public hearings spoke about how their role has evolved significantly from administering roads, rates and rubbish to navigating complex regulatory environments, managing limited financial resources, and addressing diverse and sometimes competing community needs and expectations.
The interim report makes no formal policy recommendations to Government but highlights these emerging themes.
Chair of the Committee, Luke Gosling OAM, MP, said “local governments around Australia are increasingly being called upon to provide healthcare services and housing, manage ageing infrastructure and assets, and respond to current and future climate adaptation needs. These additional responsibilities are placing a significant financial strain on local governments who are struggling to meet community expectations.
“The Committee is thoroughly reviewing the substantial evidence it has received to date and carefully considering the numerous and varied recommendations put forward in the submissions aimed at improving the sustainability of local governments. The Committee is looking forward to announcing its final recommendations in due course,” Mr Gosling said.
