Push for more sustainable funding of LGAs

Local Government Minister, Kristy McBain at the Australian Local Government Association (ALGA) regional forum last week. Photo: Contributed

Stefan Bradley

Wellington Shire Mayor, Ian Bye recently attended the Australian Local Government Association (ALGA) regional forum, meeting with federal government ministers to emphasise the need for increased funding for the state’s local governments.

The ALGA represents all 537 local councils in Australia. The regional forum was part of the 30th National General Assembly of Local Government (NGA).

More than 1200 local government leaders from across Australia gathered in Canberra from July 2 to 4 for the 30th NGA. Across two days, numerous presenters spoke on the theme of building community trust, and how local government is integral to holding and building this trust.

This year’s NGA included new listening sessions on housing and community infrastructure, emergency management, roads and transport and energy transition, that provided a free-flowing exchange of ideas between councils, the federal public service, and other stakeholders. This year’s program included consideration of 160 motions submitted by councils, outlining opportunities for the federal government to better support councils and Australian communities.

These motions included solutions to address the financial sustainability of councils, support councils to deliver cost of living relief, facilitate more affordable housing, maintain safe and productive local roads, cycleways and footpaths, better prepare for and recover from natural disasters, and close the gap between Indigenous and non-Indigenous Australians.
Federal Member for Gippsland and Shadow Minister for Local Government, Darren Chester spoke at the forum, urging council leaders to “harden their message to Canberra”.

Mr Chester said regional councils were in danger of being ‘too polite’ and needed to strengthen their demands on behalf of ratepayers.

“Local Government in regional Australia is worse off under the Albanese Government, and collectively, regional Councils are doing nothing different as they advocate for a more sustainable funding model,” he said.

Cr Bye said that Wellington Shire Council backed Mr Chester’s call for increased and sustainable funding for regional councils.

“We share the concerns raised about the current funding model, which falls short of addressing the financial needs of local governments across regional Australia,” Cr Bye said.

“Local governments, especially in regional areas, play a crucial role in delivering essential services and infrastructure to our communities. The reduction in funding from the Albanese Government has placed additional strain on our ability to effectively serve our residents. As the level of government closest to the people, we are best positioned to implement projects that directly impact our communities, yet we are consistently under-resourced.

“We echo Mr Chester’s call for a firmer approach in advocating for fairer funding outcomes. It is imperative that regional councils receive adequate support to continue providing the high-quality services and facilities that our communities deserve.”

Cr Bye said council urges the federal government to recognise the crucial role of local government and follow through on the promises made to ensure a more sustainable and equitable funding model for the future.

“Last week I attended the Australian Local Government Association (ALGA) regional forum, meeting with ministers to emphasise the critical need for increased funding and to continue Wellington Shire’s strong advocacy work. In collaboration with other Gippsland councils, we are committed to securing the resources and funding needed to realise a successful future for our region,” Cr Bye said.

“Wellington Shire Council remains committed to working with all levels of government to secure the necessary resources for our community and to advocate on behalf of our residents for a fair allocation of funding.”

Federal Local Government Minister, Kristy McBain in her speech at the forum said the government had met with over 250 councils since they came to government at the last election.

“A number that’s quickly growing… because face-to-face engagement is incredibly important,” Ms McBain said.

“It’s how you can best articulate your unique challenges and opportunities. It’s how the Albanese Government can reaffirm our commitment to working with you, as a trusted delivery partner.

“And the NGA’s theme this week of building community trust is something we take seriously. It’s why we’ve brought local government back to the table.

“It’s why we’re having productive conversations about what works and what doesn’t work in our regions.”

Mr Chester said ratepayers in regional Australia were “picking up the tab in the middle of a cost of living crisis”, and a more robust approach was needed to achieve fairer funding outcomes.

“Building Better Regions Fund, Community Development Grants, Stronger Communities Program, Local Roads and Community Infrastructure and Roads of Strategic Importance, critical grant programs heavily relied on by Local Government, have also been abolished under the Albanese Government,” he said.

In the lead up to the next federal election, ALGA says they will work with the state and territory member associations, and Australia’s 537 local governments, to advocate for critical Financial Assistance Grants to be restored to at least one per cent of federal taxation revenue, and for local government to be restored as a full voting member of National Cabinet.