With all eyes on the Federal Government’s Economic Reform Roundtable, it’s important to remember the importance and key role of Australia’s councils.
Everyone, everywhere and every day depends on the infrastructure, services and benefits provided by the nation’s 537 local councils – the closest level of government to our communities.
Whether it’s transporting goods on the 680,000 kilometres of local roads, providing public assets or enjoying the myriad of community-based facilities, including local swimming pools, libraries, parks, sporting fields and cultural centres.
Sustainably funded councils can partner with the Government to play a significant role in unlocking the nation’s productivity goals and deliver economic growth by providing ‘local solutions to national priorities’.
This was outlined in ALGA’s recent submission to the Economic Reform Roundtable, which addressed the Government’s three priority areas of improving productivity, economic resilience and budget sustainability.
We can help our nation to better prepare for and adapt to changing climate conditions, create safer roads, facilitate more housing and support our communities to be their best.
Our recent research shows councils are already delivering more than $400 million per year in projects to prepare communities for the changing climate needs. This type of long-term view is essential to the future productivity of our communities.
Local roads form the backbone of our nation’s productivity. It’s the first mile and last mile that connect farms, mines and homes to our highways. As local road asset managers, local governments are an essential link to progress the automation and efficiency of our road network.
But the future of these national productivity gains remains at risk as local government grapples with its biggest challenge – to remain financially sustainable.
Many councils are financially stretched after having to fill gaps in local service delivery, including healthcare, childcare, aged care and funeral services.
Other essential services and infrastructure, once the responsibility of State and Federal governments, are increasingly being met by local government, without any extra support provided. This continues to impact councils’ budgets.
This funding emergency was recognised by a recent Federal Parliamentary inquiry into local government sustainability, showing many councils have reached breaking point after years of being asked to do more with less money.
Published earlier this year, the inquiry’s interim report highlighted how councils across urban, regional, rural, and remote areas, are all facing pressures from changing population trends, aging infrastructure and increased service delivery obligations.
Fortunately, political leaders from both sides of federal politics are listening after Local Government Minister Kristy McBain and Shadow Minister for Local Government Dr Anne Webster recently said the inquiry needs to be reinstated and progressed during the new term of Parliament.
The Government’s final response to the inquiry must include a significant increase in untied, formula-based funding for all councils, including through federal Financial Assistance Grants. We have called for an extra $3.5 billion in federal funding to bring us back to one per cent of national taxation revenue.
We also seek to reform cumbersome grant administration. Too often, councils in need miss out on funding because they can’t afford the research and resources to create a shiny grant application.
Grant assessment creates a burden on government officials and slows down funding getting into communities. That’s why we need more formula-based funding – where councils are provided with a clear forward allocation so they can plan their budgets.
We stand ready to deliver for our nation but need foundation funding to do so. We can’t afford for the Government to simply re-cut the funding model – we need a significant uplift for all council budgets across Australia.
We urgently need serious funding increases and not just pocket money.
Every day councils achieve so much – just imagine what we could do with secure, long-term and untied funding to deliver the nation’s priorities.
Importantly, local government can create effective place-based partnerships with the Government – we are local, we are in every community, and we stand ready to help.
Having a strong, sustainable local government sector is critical not just for local communities but also for the future growth and productivity of our nation.
