Council voices heard in Government’s $5 million response to Rex shutdown

The Australian Local Government Association – and councils around the country – welcome the news of a
government lifeline after Rex Airlines went into voluntary administration nearly two years ago, leaving many
councils carrying unpaid debts.

ALGA President, Mayor Matt Burnett, said the announcement of $5 million in grants would come as a relief
to the many councils impacted by the airline’s 2024 financial collapse.

“We’re grateful that Minister King and the Federal Government have listened to the councils around
Australia who were left with unpaid bills after Rex’s voluntary administration,” Mayor Burnett said.

“Regional and remote communities rely on those council-owned and operated aviation services: those
airports and aerodromes are critical to local economies, and to ensure connections to friends and family,
and access to services.”

Mayor Burnett said increased funding to councils through federal Financial Assistance Grants was a further
crucial step in ensuring they could invest in and support local aviation infrastructure.

ALGA’s 2024 National State of the Assets report showed aviation facilities operated by councils are worth
$3.6 billion, and around 12 percent of these facilities were in poor condition. With limited rate bases,
councils are feeling the pressure of trying to maintain and modernise their airports.”

“Restoring Financial Assistance Grants to at least one percent of Commonwealth taxation revenue would
support councils to invest in sustainable upkeep of critical regional aviation facilities.”

BACKGROUND
In August 2024, ALGA called for strong action by the Government to ensure regional communities remained
connected and accessible in the wake of Rex Airlines entering voluntary administration. We also jointly
convened a crisis meeting with impacted councils and Federal Local Government Minister Kristy McBain.

A year ago, the Federal Government announced it would acquire the airline after it entered voluntary
administration. At the time, ALGA thanked the Government for safeguarding regional aviation services and
protecting the local economies of regional and remote communities.