Australia’s National Local Government Newspaper LGFocus.com.au
Crisis looms
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A looming financial crisis is threatening the very survival of councils. That is the message the Councils from every State and Territory and Unions representing the entire Local Government sector sent to Federal Parliament in Canberra. Australia’s 538 local councils united at the National General Assembly in Canberra to call on the Australian Parliament to deliver an immediate increase in untied funding, warning the financial sustainability of councils and the services communities rely on are increasingly at risk. In a powerful show of unity, delegates endorsed an emergency motion calling for fairer funding for local government and backed a joint letter to be tabled with every Member of the House of Representatives and the Senate. The letter, signed by the presidents of state and territory local government associations, calls for a multi-partisan commitment to a stronger funding partnership with councils. Copies of the letter will be sent to the Speaker of the Parliament as well as every MP and Senator. Union leaders representing the whole Australian Local Government workforce then joined with the Presidents of State and Territory Local Government Associations to hold a joint media conference to demand fairer funding for the sector. Australian Local Government Association President Mayor Matt Burnett said the motion reflected the shared reality facing councils across metropolitan, regional, rural and remote Australia. “Financial sustainability is not an abstract discussion for local government. It is about whether councils can keep doing the job our communities expect us to do,” Mayor Burnett said. “Councils are responsible for the roads, bridges, libraries, pools, parks, footpaths, stormwater systems, waste services and community facilities Australians rely on every day. “We are also the first people communities call when something goes wrong, whether that is a local road failure, a disaster, a planning issue or a service disruption. “Yet councils are increasingly being asked to do more with less funding certainty, less flexibility, limited revenue capacity and less ability to plan for the long term.” The emergency motion calls on the Australian Government to act now to deliver fairer funding through an immediate increase in untied funding for all councils. Mayor Burnett said Financial Assistance Grants were central to councils’ ability to respond to local priorities because they are untied
July 2026
Australian Local Government Association President Mayor Matt Burnett said the motion reflected the shared reality facing councils across metropolitan, regional, rural and remote Australia. (Supplied) and flexible. “Financial Assistance Grants are not just another grant program. They recognise that no two communities are the same and trust councils to make decisions based on local needs,” he said. “For rural, regional and remote councils, the pressures include vast geographic areas, small populations, ageing infrastructure and limited rate bases. “For fast-growing urban councils, the challenge is keeping pace with demand for new roads, drainage, parks, community facilities, waste systems and other services needed to support housing growth. “The circumstances differ, but the underlying problem is the same. Community expectations, costs and responsibilities are rising, but the funding partnership is not keeping pace.” Mayor Burnett, who is also the LGA Queensland president, said the consequences extended beyond local government, affecting national productivity, housing supply, freight efficiency, liveability and disaster resilience. “When councils cannot maintain local infrastructure, productivity suffers. When roads and bridges deteriorate, freight suffers. When essential facilities and enabling infrastructure are
delayed, housing delivery and liveability suffer,” he said. “This is not just a local government problem. It is a national problem, and it requires a national response. “Councils want to continue working constructively with the Government, the Parliament and all parties. But the message from this Assembly is unmistakable: local government is united, local government is serious, and councils are calling for action now.” Mayor Burnett thanked the Australian Services Union (ASU) and United Services Union (USU) for their long support of fairer funding to councils. ASU National Secretary Emeline Gaske said the halving of value of Financial Assistance Grants as a share of national taxation over the past 30 years from one percent in 1996 to just 0.49 percent in 2026-27, increased the urgency of the call for fairer funding. “Council workers keep Australian communities running every single day. They collect our bins, running our libraries, maintaining our roads and support communities through floods and fires. They do this work professionally and with commitment, but they need councils that
are properly resourced to back them up,” Ms Gaske said. In NSW alone, there are more than 50,000 council workers serving their local communities. United Services Union General Secretary Graeme Kelly said the shortfall in funding had forced councils to make difficult budget choices. “The decline in Federal funding has real consequences for the workers and communities who depend on council services. Restoring the one percent benchmark is the single most important thing Canberra can do for local government,” Mr Kelly said. NSW LGA President, Mayor Darcy Byrne said the financial crisis in Local Government is leaving many regional communities in particular at breaking point. “That’s why we are all united in demanding that enough is enough. This must be fixed,” he said. WALGA President, Mayor Mark Irwin AM said maintaining untied direct funding through Financial Assistance Grants was critical and ensures Local Governments can direct resources where they are needed most, reflecting their unique conditions and priorities. Continued page 2