The Nationals Member for Northern Victoria Gaelle Broad said potential cost-shifting issues ranged from waste collection to school crossing attendants, and the repair of regional roads.
Ms Broad is a member of the Legislative Council’s Economy and Infrastructure Committee conducting the inquiry.
The Committee will investigate local government funding and service delivery in Victoria, including:
• Cost shifting from state and federal governments to local council;
• Ability of local governments to meet core service delivery objectives.
• Local government’s revenue structure, as well as whether these structures are sustainable and appropriate, and;
• Whether there are alternative models of funding to consider.
The inquiry was instigated by the Liberals and Nationals, in response to concerns from many local government areas.
“The electorate of Northern Victoria that I represent covers nearly half of the state, and there are 27 local councils in the region,” Ms Broad said.
“I have met with many councils across the region, and between state and local government, it’s not always clear who pays for what, and how much each should pay.
“This inquiry will provide an important opportunity to examine what is working well and what can be done better.
“I encourage both local councils and residents to make submissions to the inquiry.”
On the NSW side of the border Federation Council also wants cost shifting by the NSW and Federal Governments to end.
In Decemebr 2023 councillors unanimously backed a recommendation from their General Manager Adrian Butler to continue to advocate for improvements to the financial model for Local Government, to put an end to the cost shifting.
Mr Butler commented on a Local Government NSW 2023 Cost Shifting – How State Costs Eat Council Rates report.
“The report is on the continued and significant cost shifting from the State Government, and to some extent Federal Government, impacting on the finances of Local Government,” he said.
“The report highlighted cost shifting has grown to $1.36 billion annually, or when equated to the amount of NSW ratepayers, more than $460 per ratepayer per year.”
Many councils including Federation Council have applied for or are preparing applications, for significant increased rates, by way of SRVs.
“Despite ageing infrastructure and historically low rates that have not kept pace with inflation for example, along with growing council services and assets, cost shifting also plays a major factor in the challenges for council’s financial sustainability,” Mr Butler said.
“LGNSW advise it is ‘quite simply, unsustainable and cannot continue’.”
Submissions in Victoria are due by June 28, 2024 and can be made via the committee’s webpage: Inquiry into Local Government funding and services (parliament.vic.gov.au)
You can also register to receive email updates for the inquiry on the committee’s website.
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