Put Our Communities First
Any way you look at it, federal funding to local communities needs to be improved.
It’s an alarming situation with councils now receiving around 50% of the level of Financial Assistance Grants they received 30 years ago! But your vote in the next federal election can help reverse this slide.
If the Commonwealth Government does not provide more funding to local governments, then your council rates will increase to pay for vital local services and facilities. It’s not cheap to implement big national priorities at the local level – and we need councils to get their fair share of funding support from the Commonwealth.
Funding priorities for local government
The ALGA Board has identified five key areas where increased federal funding would put our communities first.
This funding should be provided to every Australian council, so that every community shares in the benefits.
Housing infrastructure
Australia is experiencing an affordable housing crisis, with a lack of supply impacting on both homeowners and renters. As a nation we’ve set an ambitious target of building 1.2 million new, well-located homes in the next five years, but based on current construction levels we’re not going to meet this mark.
One of the biggest barriers to building more homes is a lack of funding for supporting infrastructure – the roads, power and water connections that are necessary for new housing developments.
Building the enabling infrastructure to cover the gap between current housing constructions and our national housing target is estimated to cost at least $5.7 billion.
ALGA is calling for a new five-year, $1.1 billion annual fund that would be provided to all councils to get the foundations right for the new housing our communities so desperately need.
Community infrastructure
The local government libraries, playgrounds, bike paths, recreation centres and sporting fields that we all enjoy are vital to the wellbeing and liveability of every community. They provide free and low cost entertainment, support active and healthy lifestyles, and allow us to meet and connect with each other. However, many of these facilities are aging and in need of significant attention. In fact, more than $8.3 billion of local government buildings and facilities and $2.9 billion of parks and recreation assets are in poor condition.
ALGA is proposing a $500 million per year community infrastructure fund – to be provided to all councils – to build, maintain and upgrade the local facilities that make your community great.
Safer local roads
Tragically, the number of deaths and serious injuries on Australian roads continues to climb every year.
Australian councils collect less than four percent of national taxation, while managing around 75% of the country’s roads. Around half of all fatal car accidents occur on these roads.
Effectively funding the maintenance and necessary safety upgrades of Australia’s local road network is a big challenge, and despite recent increases in the federal Roads to Recovery funding councils receive, there’s still a $500 million per year funding shortfall.
A $600 million per year safer roads fund – with $500 million for infrastructure improvements and $100 million for road safety programs – would support all councils to play a more effective role reducing deaths on Australian roads.
Emergency management
Over the past two years, more than 60 per cent of local government areas have been declared natural disaster areas. Fires, floods and cyclones currently cost Australia $38 billion per year, and this is predicted to rise to $73 billion by 2060. Australian councils play a key role preparing for, responding to and recovering from natural disasters, but aren’t effectively funded to carry out these duties.
Unfortunately, it’s often regional communities that have the least capacity to plan and respond to natural disasters, that are hit the hardest. Increased investment in disaster mitigation and resilience, as well as local government emergency management capacity and capability, will save money in the long term while better protecting Australian lives, homes and businesses.
ALGA is proposing $900 million per year in dedicated funding for councils to improve mitigation and resilience, and build their capacity and capability to respond to emergencies in our communities.
Climate change adaptation
The impacts of climate change – including more frequent and severe natural disasters, coastal erosion and rising temperatures – are being felt right across the country. Australia’s 537 councils are at the frontline of climate adaption. They build swimming pools to keep us cool, plant trees to provide shade, build and upgrade stormwater systems to manage heavy rains.
However, funding and support from other levels of government are failing to keep pace with these increased responsibilities, meaning the burden to fund these activities falls to local communities. The climate of every community is different, and each council knows what their community needs to prepare.
ALGA is proposing a new $400 million climate adaptation fund, to be distributed across all Australian councils to provide local, place-based solutions to our changing climate.
Get involved and make your vote count
There’s a lot you can do to support better funding that puts our communities first. Keep up-to-date with the issues your local political parties rally behind this federal election and help us ensure that increasing funding for local government gets the attention it deserves. #putourcommunitiesfirst
FAQs
Why is federal funding important?
For many councils – particularly in regional, rural and remote areas – Financial Assistance Grants underpin their financial sustainability. In fact, these grants comprise more than 20 per cent of annual operating revenue for around one in four councils, and help ensure that people living in these communities have equitable access to local services.
Unfortunately, over the past 30 years, Financial Assistance Grants have halved as a percentage of total Commonwealth taxation revenue – from one percent to just half a per cent today.
What is formula-based funding?
Many of the federal funding streams councils are eligible for are competitive programs. This means that smaller councils and communities – with limited resources to develop funding applications – often miss out.
Formula based funding – similar to the funding councils receive through the Commonwealth’s Financial Assistance Grants and Roads to Recovery programs – means that every council receives support proportional to their size and local needs. The needs of every community are different, and formula-based funding also supports councils to make decisions based on local priorities.
What is at risk?
Councils provide hundreds of services, responding to the needs of their communities. However, many are facing significant financial pressures, and have to make hard decisions about the programs they deliver and the facilities they provide.
Better funding for local government would ensure that every council can continue to provide vital services in their community, and every Australian – no matter where they live – will benefit.