Budget provides SA stymulus

Mayor Angela Evans.

This year’s federal budget includes several key initiatives relevant to the local government sector, including funding to support council-led projects to stimulate economic recovery according to LGA SA President Angela Evans.

“Partnering with councils is the key to unlock economic recovery – they are on the ground and know their communities best, and that’s what leads to better service delivery outcomes and more effective use of tax dollars,” the Mayor said.

“The $500 million Local Roads and Community Infrastructure Program in the federal budget is a big tick for councils – it means we can keep delivering the services we know communities value, like libraries, walking and bike trails, playgrounds and parks, recreational facilities and so much more.”

“Other measures around affordable housing, rural and regional health and funding to fix mobile black spots are a step in the right direction, as these challenges are front of mind for South Australian communities.”

“We’re grateful to see $2.8 billion in untied Financial Assistance Grants for councils – around 0.55 per cent of Commonwealth tax revenue, as these grants are vital for councils to deliver facilities and services – and are needed now more than ever as we seek to support liveability, protect community wellbeing, support thousands of jobs and deliver much-needed community assets.”

“However, we’re standing side-by-side the national call for an increase in these grants for local government to the equivalent of one per cent – that’s what’s needed to shift the dial for economic recovery and growth.”

“For SA, we’d also like to see a fairer share of road funding on an ongoing basis as that’s vital to meet the current inequity that exists in the allocation of local roads funding to our state.”

She said LGA SA continued to analyse the details but was pleased to see advocacy through the Australian Local Government Association has delivered a $500 million extension of the Local Roads and Community Infrastructure Program. Through this program South Australia is set to receive $44.9 million.

This extension will help councils continue to deliver important projects for libraries, sporting facilities, bike and walking trails, streetscape improvements and playgrounds in their communities, providing free and low-cost activities and delivering cost-of-living savings for all Australians.

She said the government has missed an opportunity to extend the Supplementary Local Roads Program, which was provided to South Australia to address the inequity that exists in the allocation of local roads funding to our state. The LGA will be calling on the government to fund this program beyond the current financial year to benefit local communities.

An allocation of $2.8 billion in untied Financial Assistance grants, or 0.55 per cent of Commonwealth tax revenue, is provided in the budget with $2.1 billion to be paid in 2021-22. This has the potential to support thousands of jobs across Australia and stimulate economic activity. South Australian councils will receive $45.6 million in 2022-23.

A range of initiatives are designed to lessen cost-of-living pressure, including tax offset increases, halving of the fuel excise to 22.1 cents for a period of 6 months and support payments for eligible pensioners and concession card holders.

The group wrapped up some of the other key measures relevant to local government in South Australia below. More information is available in their Federal budget wrap up for local government.