They have written 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 Council mayor, Cheryl Cook and Indigo mayor, Sophie Price were among the mayors who attended the National General Assembly in Canberra.
Cr Cook said that over the last 30 years, councils had watched the Commonwealth Financial Assistance Grants dwindle from 1 per cent of federal tax revenue to less than 0.5 per cent.
"We are being asked to do much more with drastically less," Cr Cook said.
"For regional and rural councils like Federation, this isn't just a line item on a balance sheet; it is about the survival of our community’s most basic lifelines.
“Without adequate resources backed by the Federal Government, maintaining essential day-to-day services is becoming an impossible task.
“We cannot rely on ratepayers to plug a systemic funding gap created in Canberra ... the time for talk has passed.”
We cannot rely on ratepayers to plug a systemic funding gap created in Canberra.
Cr Price said rate capping, cost-shifting from state and federal governments, and rising construction costs were putting real pressure on what the council can deliver for the Indigo community.
“When Financial Assistance Grants have fallen to roughly half of what they once represented … that has direct consequences for the roads, facilities and services our community relies on every day.
"Indigo is a small rural council, with ageing infrastructure, limited options to raise revenue, and a community that deserves better than a funding model that has been quietly eroded over time.”
Both mayors said the call was clear and not unreasonable, and what councils need to plan with confidence and be able to invest in the future.
“We are not asking for special treatment, we are asking for fairness," Cr Price said.
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