Councils’ pre-election call for funding

With the federal election date locked for 3 May, councils are reaffirming their demands from the next government.

Number one: long-term sustainable funding. “We are asking the next Australian Government to put our communities first,” said Matt Burnett – president of the Australian Local Government Association.

ALGA is calling on the next government to deliver a “significant uplift to all councils’ budgets”. On behalf of the 537 LGAs it represents, ALGA has produced a list of funding priorities:

• $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 emergency management capability and capacity
• $400 million per year for climate adaptation.

“We need non-competitive, formula-based funding for all councils in these priorities so we can engage our communities and plan budgets with certainty,” Burnett said.

Welcoming the start of the federal election campaign, the Local Government Association of Queensland called it “an opportunity for all candidates to commit to ending a broken 50-year-old funding model holding councils and their local communities back”.

Queensland councils are redoubling calls “for fairer funding, policy changes and critical emergency weather infrastructure to support local communities”.

Councils are “seeking an end to the broken, outdated federal funding model,” said Burnett – also president of LGAQ. “FA grants provide untied funding to councils to prioritise their unique community needs and restoring them to 1 per cent of tax revenue is key to guaranteeing liveability and affordability for ratepayers. Despite this, last week’s budget sees them stuck on just 0.51 per cent of tax revenue.”

LGAQ chief executive officer Alison Smith said only when properly funded can councils provide liveable communities. “Councils deliver so much despite receiving so little – just 3 cents in every $1 of taxation revenue. But councils need fairer funding, and when the Commonwealth receives more than 80 cents of that same $1 of tax, all candidates and parties need to step up and commit to paying councils and communities their fair due.” 

 The federal funding model supporting councils and their communities – introduced in the mid-1970s – is going backwards with untied funding for local governments continuing to fall as a percentage of Commonwealth tax revenue, said Smith. “Without further federal support, councils have limited options available to them to fill the gap – increasing rates or cutting services.”

Invest in councils, and you invest in communities

Local Government NSW is also backing the campaign for sustainable funding. “We have 46 federal electorates across the great state of NSW. I want every candidate in every one of those areas to commit to this funding – or to explain to their voters why they refuse to sign up,” said LGNSW president Phyllis Miller.

“For too long we’ve seen a gradual decline in the level of financial support from Canberra for councils who are delivering much-needed services and infrastructure directly to their communities right across Australia,” added Miller – Mayor of Forbes.

Local councils have been asked to do more with less for 30 years and many councils are at breaking point, said LGANT president Kon Vatskalis. “When councils are sustainably funded, they can provide the foundations for vibrant, well-supported communities. Improved funding would support councils to deliver local-place based solutions to the challenges our nation is facing in affordable housing, road safety, natural disasters and climate change.”

Every community needs to benefit from federal funding, added Vatskalis, “including smaller councils that often miss out on competitive federal funding programs”.

Federal policy and funding must recognise the essential role of local government, said LGA South Australia president Heather Holmes-Ross. “The reality is councils can’t fund everything from rates alone and with federal support failing to keep up, it’s communities who are left feeling the impact.”

LGA South Australia’s key asks ahead of the federal election include:

• fairer funding for councils for roads
• increased investment to support liveable communities and housing enabling infrastructure
• increased funding for emergency management, and climate and coastal adaptation.

“When councils are properly funded, they are better placed to build stronger communities, create local jobs and make sure families, businesses and industries have the infrastructure and resources they need,” said Holmes-Ross. “Our message is simple – invest in councils, and you invest in communities. If we want safer roads, better parks and playgrounds, more action on housing and stronger local economies, we need Canberra to step up.”