Responding to the Albanese government’s landslide election win, peak bodies for local government have reiterated calls for the Commonwealth to address councils’ financial sustainability.
“The strong result delivered the government an undeniable platform, and I encourage them to be bold and courageous in delivering their agenda over the next three years,” said Phyllis Miller – president of Local Government NSW. “In particular, I encourage them to continue the work of the Commonwealth parliament’s inquiry into the financial sustainability of councils across Australia.”
On behalf of the state’s 128 councils, LGNSW contributed to the inquiry and “was heartened” by the release of an interim report in February that recognised local governments are under “significant financial strain” and struggling to meet community expectations.
“They have increasingly been relied upon to deliver services and infrastructure which were traditionally under the purview of the Commonwealth, state and territory governments,” said inquiry chair Luke Gosling.
“I call on the prime minister to allow that inquiry to continue so it can deliver its final report and support the new government in implementing its recommendations,” said Miller – Mayor of Forbes.
President of Local Government Association of Queensland, Matt Burnett, said it was encouraging to see the interim report confirm the evolving role of local government but, he added, “the current funding arrangements aren’t keeping pace.”
“It’s vital the final report recommends significant increases in untied, formula-based funding that will support all councils to plan for the future of our communities. We can’t afford to be distracted by funding formula changes when a significant lift in funding is needed to support all councils,” said Burnett – Mayor of Gladstone Region.
Sustainable funding continues to be a concern
While congratulating the re-elected Labor government, including the successful Northern Territory candidates, president of the Local Government Association of the NT Kon Vatskalis told GN the interim report into local government sustainability identified “some very real financial challenges” for councils. “We hope the new government prioritises the release of the final report and to committing significant resources to help address these challenges,” said the Mayor of City of Darwin.
Mick Tucker – president of Local Government Association Tasmania – also drew attention to councils’ financial woes. The Mayor of Break O’Day Council told GN: “Sustainable funding continues to be a concern for local government, with communities now expecting councils to provide a range of services to people beyond the historical services to property, such as roads and rubbish. This makes it inevitable that councils will face increasing demands on their already-strained resources in the years ahead due to complex and growing community needs,” he said.
LGA Tasmania looks forward to further consultation with the Albanese government on expanding the untied and needs-based funding options, said Tucker, “including a fairer distribution of Commonwealth taxation revenue, so local governments can continue to play a vital role in shaping and supporting strong communities.”
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