Reinstatement of the national inquiry into local government sustainability

ALGA welcomes the reinstatement of the national inquiry into local government sustainability.

Financial sustainability is the biggest challenge facing councils as many councils continue to face growing financial pressure on their budgets.

ALGA President Mayor Matt Burnett said: “Reinstatement of the inquiry is a welcome first step in addressing financial sustainability – we simply can’t afford to wait any longer.

The inquiry’s interim report, published back in February this year, highlighted how councils across urban, regional, rural, and remote areas, are all facing increased costs from changing population trends, aging infrastructure and increased service delivery obligations.

“We want the Government’s response to the inquiry to include a significant increase in untied funding for all councils, including through federal Financial Assistance Grants.

“The percentage of national taxation collected by councils has also dropped to a 15-year low and we continue to shoulder more responsibilities without corresponding financial support.

“We need an extra $3.5 billion in federal funding that will bring us back to one per cent of national taxation revenue.

Mayor Burnett said: “We stand ready to deliver for our nation but need more foundation funding.

“It’s time for the Government to recognise that national challenges need local solutions – and that means empowering councils with funding to take on these challenges to benefit communities.”