The current fiscal environment is a challenging time for Local Government.
The Australian Local Government Association (ALGA) is continuing to coordinate the campaign urging the Commonwealth to reinstate the indexation of Financial Assistance Grants (FAGs) as soon as possible.
This is important for every Australian community and for the financial sustainability of our councils.
ALGA is committed to advocating for the early restoration of indexation, with the campaign aiming to ensure that both the Federal Government and MPs are fully aware of the consequences of the freeze on indexation for local communities.
Last month’s Federal Budget confirmed the continuing freeze on the indexation of the FAGs.
Over the three years of the freeze, which started in 2014–15, the base of the FAGs grants will be cut by an estimated 13 percent.
By 2017–18 when indexation is restored, around $925 million will have been foregone by communities around Australia.
ALGA is working with state and territory associations and councils to restore indexation as early as possible.
If indexation is restored next year, we could reduce the annual cut in the FAGs base by around $100 million.
There was some good news in the Budget, however, with the Government meeting its commitment to double the funding for the Roads to Recovery (R2R) programme and provide additional Black Spots funding in 2015–16.
The doubling of R2R will see an extra $350 million in Roads to Recovery funding provided to councils in the coming financial year and, in addition, Black Spots funding will increase from $60 million to $160 million.
The 2015 National General Assembly (NGA) of Local Government, held in Canberra from 14–17 June, is an important opportunity for us to unite and send a powerful message to the Commonwealth about the need for adequate funding for local government and the importance of the direct relationship between the Australian Government and Local Government as a vital part of the Federation.
The theme for this year’s NGA is ‘Closest to the Community: Local Government in the Federation’.
The Australian Government is currently working with all state and territory governments and ALGA to develop White Papers on reform of the Federation and Taxation.
The NGA will allow Local Government as a whole to consider relevant issues to ensure the sector’s aspirations are addressed in the White Papers.
I have been clear in my discussion with the Australian Government that I want to see local government strengthened as a result of any reform and we need your input to advance that objective.
The NGA program includes substantial time for debate on Council motions to allow us to explore solutions to the challenges we are facing as well as informing the deliberations on Federation and taxation reform.
Debate will also cover roads and infrastructure provision, local government financing and a number of other policy areas directly relevant to local government.
Speakers will be presenting on a wide range of issues, directly and indirectly related to the crucial place that local government holds in our communities.
Keynote speakers include the Deputy Prime Minister, the Hon Warren Truss, the Minister for the Environment, the Hon Greg Hunt, Dr John Hewson, Dr John Bannon who is a member of the Prime Minister’s Expert Advisory Panel on Federation Reform and Rosie Batty the 2015 Australian of the Year.
