The Australian Government’s response to the Hawker Report – “Rates and Taxes: A Fair Share for Responsible Local Government” was released in June.
The Report, prepared by the House of Representatives Economics Finance and Public Administration Committee and chaired by David Hawker, was released in November 2003. It contained bipartisan support for key findings, including that cost shifting was costing Local Governments between $500 million and $1.1 billion per year.
The Australian Government’s response, tabled in Parliament on 22 June 2005 by Federal Minister for Local Government, Jim Lloyd, has four components:
- an Intergovernmental Agreement on cost shifting
- a Productivity Commission study on barriers to Local Government revenue raising
- recognition of Local Government by both Houses of Federal Parliament
- a review of interstate distribution of the identified roads component of Financial Assistance Grants.
The Minister has also committed the Australian Government to exploring further opportunities to develop partnerships with Local Government for the benefit of local communities.
Australian Local Government Association President, Councillor Paul Bell, has welcomed the Australian Government’s response to the Fair Share Report saying that it represents a significant milestone in Local Government’s long march to fair funding, formal recognition and its treatment as an equal and valued partner within the Australian Federation.
