South Australia’s Local Government Association has welcomed the three-year extension of local road funding for SA councils, announced in this month’s 2023-24 Federal Budget.
LGA President Mayor Dean Johnson said securing an extension of the annual $20 million funding was a key advocacy focus leading up to the election and has resulted in a big win for local government in SA.
“For most councils, maintaining roads is the single largest item of expenditure they have – and over the past 12 months that’s been felt even more with significant wear and tear from storm damage and flooding,” Mayor Johnson said.
“Councils spend more than $340 million per year to maintain local roads but rely on federal funding to ensure they’re not only kept to a high standard, but can support the productivity of our state’s freight network.
“In SA, we have seven per cent of Australia’s population and 11 per cent of its local roads, but receive just 5.5 percent of the Federal Government’s local road funding under Financial Assistance Grants.
“This is why the retention of Supplementary Local Road funding over the next three years and funding for disaster resilience is so important, along with the range of road and infrastructure packages available.
“I thank the Treasurer the Hon Jim Chalmers MP, Minister for Infrastructure, Transport, Regional Development and Local Government the Hon Catherine King MP, and Minister for Regional Development, Local Government and Territories the Hon Kristy McBain MP for supporting SA councils and their communities with this funding extension.”
The Supplementary Local Road funding is in addition to $500 million allocated to the Roads to Recovery Program and $350 million for national road network maintenance.
Included in the Budget is also a $862.8 million allocation of Financial Assistance Grants committed to SA councils.
Local government across the state will share in $202.9 million for the 2023-24 financial year, and a further $659.7 million collectively over the following three years.
Mayor Johnson said while the sector had hoped to see increases to Financial Assistance Grants, the renewed funding will facilitate vital resourcing for councils.
“At a time where councils are confronted by rising inflation and growing external cost pressures, we greatly welcome this allocation,” Mayor Johnson said.
“Financial Assistance Grants make up more than 20% of annual operating expenditure for around one in four Australian councils – they’re a lifeline for the liveability and productivity of communities.
“SA councils are already among the most efficient in the nation and deliver enormous value by providing essential services and community infrastructure at a local level, keeping our suburbs safe, vibrant and attractive places to live and work.
“Funding priority community infrastructure through programs like the Local Roads and Community Infrastructure fund, Urban Precincts and Partnerships Program and Thriving Suburbs Program are absolutely essential.
“We’ve already seen councils facilitate thousands of community projects through federal funding – everything from new community centres and upgrades to sporting facilities, to the development of recreational trails, playgrounds and renewal of roads.
“While returning Financial Assistance Grants funding to one percent of national taxation remains our priority, we recognise the significant impact this funding makes to our councils and look forward to continued discussions with the Federal Government on this topic.”
