Financial Assistance Grants are councils’ primary source of untied Commonwealth funding, allowing local governments to direct investment according to their communities’ priorities.
Last month, Australia’s 538 local councils stood together in a step unprecedented in scale and unanimity.
They wrote to the Speaker of the House of Representatives to warn of a financial crisis affecting local government across the country and called for the Australian Parliament to deliver an immediate increase of $3.5 billion, restoring Financial Assistance Grants to 1 per cent of annual federal tax revenue.
Federation mayor, Cheryl Cook, deputy mayor Rowena Black, general manager Adrian Butler, Indigo Shire mayor, Sophie Price, deputy mayor, Jane Dowsley and chief executive Trevor Ierino, and Moira Shire Council’s chief executive, Matthew Morgan attended the National General Assembly of Local Government in Canberra in June.
At the time, Cr Cook told the Free Press that the issue was not just a line item on a balance sheet, but about the survival of the community’s most basic lifelines.
“We cannot rely on ratepayers to plug a systemic funding gap created in Canberra ... the time for talk has passed,” she said.
This week she welcomed the announcement saying the commitment was particularly important for rural and regional communities.
“For regional councils, every dollar of secure and untied funding makes a real difference to our ability to maintain local roads, deliver essential services and invest in the infrastructure our communities need,” Cr Cook said.
“Our communities deserve access to reliable local services and infrastructure, regardless of where they live, and councils are often best placed to understand and respond to those local needs.”
Mayor Sophie Price said Indigo Shire saw the vote as a step in the right direction; however, she said it fell well short of returning Financial Assistance Grants to one per cent of taxation revenue.
“The Commonwealth can keep 99 per cent, just give the sector the one per cent it needs.”
“The Commonwealth can keep 99 per cent, just give the sector the one per cent it needs,” Cr Price said.
“Half a per cent is simply not enough for struggling councils, and combined with rate capping, it's crippling councils like Indigo.
“It should not be our community that makes up the difference."
Moira Shire Council chair administrator, Dr Graeme Emonson said increasing the grants was an important recognition of the financial pressures facing councils and their communities.
He said this week’s vote was a “significant and encouraging result”.
“The increasing cost of delivering services as well as increased expectations from growing rural communities puts real pressure on councils to be able to fund their operations without impacting on ratepayers,” Dr Emonson said.
“Federal Assistance Grants are vital for councils to ensure their communities are not left behind; increases in these grants will help us to lessen the funding gap.
“We look forward to this policy discussion being finalised and making its way into tangible funding outcomes for local government.”
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