South Australian councils have issued a dire pre-budget warning to Canberra, saying that without urgent certainty and indexation of Federal Supplementary Local Road Funding, the state’s local road network is at risk.
With maintenance costs rising and funding under the program frozen for nearly a decade, Councils say urgent action is needed to protect essential infrastructure that connects communities, supports regional economies, and keeps freight moving safely.
SA LGA President and City of Mitcham Mayor, Heather Holmes-Ross said the state receives the lowest amount of Federal road funding on a per capita and per kilometre basis of any states and territories.
“SA councils maintain 76% of the state’s road network and in some cases are now paying 38% more for asphalt and 48% more for rubble – yet road funding has not been indexed in over a decade,” Mayor Holmes-Ross said.
“Without an increase in base funding and indexation of Supplementary Local Road Funding, local councils – particularly in regional areas – will struggle to keep pace with rising costs.
“Local government is the level of government closest to communities and plays a vital role in delivering on national priorities. With fairer, indexed funding, councils can continue to partner with the Federal Government to deliver projects efficiently, support regional growth, and help meet shared targets that benefit all Australians.”
She said LGA South Australia and its members are seeking a fiscally responsible and indexed funding model that reflects real construction cost increases and provides councils with the confidence required for long-term asset management and planning.
The Association says regional councils are among the hardest hit, having responsible for vast road networks but with small ratepayer bases and limited capacity to raise revenue.
Mid Murray Council Chief Executive Officer, Ben Scales said his Council will be forced to make tough decisions without continued or indexed Supplementary Local Road Funding.
“Our council’s 3,386km road network is the second largest of any council in SA. These roads are critical for keeping our towns and outlying communities viable and connected, and for the future of our farming, tourism and small business sectors, as well as everyday life,” Mr Scales said.
“We have a smaller population base than metro councils, and that means a higher share of the cost of maintaining these vital roads falls unfairly on our ratepayers.
“We need reliable, ongoing federal funding that recognises the importance of this road network to the prosperity, wellbeing and safety of our community – and that increases in line with the rising costs of road building and maintenance.
“Without continued and indexed funding through Supplementary Local Road Funding, we’ll be forced to make tough choices about which roads we can maintain and which need to be put off. This poses an unacceptable risk to our community, who deserve a safe, accessible road network.”
Yorke Peninsula Council Mayor, Kylie Gray echoed the same sentiment.
“Our council manages the largest local road network in South Australia, with over 3900 kilometres of roads connecting farming communities, freight routes and coastal towns,” Mayor Gray said.
“Construction and maintenance costs have risen significantly in recent years, yet federal road funding has remained largely static.
“Without continued and increased funding through the SLRF, it will become increasingly difficult to maintain these critical assets to a safe and reliable standard.”
Flinders Ranges Council CEO, Sean Holden said maintaining critical transport links across a vast and remote region presents ongoing challenges for council.
“We manage more than 1,400 kms of roads in our region, of which only 17kms are sealed,” Mr Holden said.
“The SLRF funding has been crucial for making our roads safer, encouraging tourism and linking freight from south to north.”
LGA South Australia is callingon the Commonwealth to:
- Extend SLRF funding beyond 2025–26;
- Apply indexation using the ABS Producer Price Index for Road and Bridge Construction, lifting funding to an estimated $31.8 million in 2026–27;
- Provide legislative certainty for long-term financial and asset planning;
- Invest $56 million in a one-off catch-up payment to address nine years of unindexed funding.
LGA South Australia has submitted its asks to the Federal Government’s Pre-Budget submission and will head to Canberra in March to meet with key federal Ministers to discuss securing a fairer deal for South Australians.
For a copy of LGA South Australia’s submission visit: LGA South Australia – Federal Pre-budget Submission – Jan 2026.
