Local councils are demanding a commitment from federal political parties to address a lack of funding for local government as an election commitment.

NSW Country Mayors Association chairman Mayor Rick Firman OAM, speaking on behalf of member councils like Edward River and Murray River councils, “bemoaned” the lack of commitment to shortfalls clearly identified in the Interim Report into Local Government Sustainability.

“Despite ongoing calls from all local government peak bodies and from individual councils for the annual Commonwealth Financial Assistance Grants to increase by one per cent of taxation revenue, not a single party has addressed the issue,” Mayor Firman said.

“Do they think that if they ignore us, we will just go away? Not likely!”

Both Murray River and Edward River have both addressed the meagre increases proposed for Financial Assistance Grants separately, and through local government bodies.

These grants have been reduced from one per cent in 1996 to just 0.05 per cent today.

If the full one per cent is delivered, Murray River Council’s allocation could increase to more than $20 million.

In Edward River, the allocation could rise to more than $14 million.

The local government sector has identified falling revenue as the major contributing factor to the financial sustainability challenges that many councils in NSW currently face.

“Declining Commonwealth contributions, coupled with rate pegging in New South Wales and increasing operating costs are making it extremely difficult for councils and particularly country councils to continue to deliver services and infrastructure at the levels their communities need and deserve,” Cr Firman said.

“Local Government expects that the unique role that councils perform in delivering on-ground services to the people living in every corner of Australia will be recognised and funded appropriately by the Commonwealth.

“The Federal Election provides a platform for all parties and the Independents to make that commitment.”

Country-based councils across NSW face unique cost pressures, with many local government areas the size of small European countries.

Councils are required to deliver public services like administration, recreational facilities, pools, libraries and waste facilities in multiple locations to ensure equity of access, which increases the cost of council operations.

“The interim report identified that local government is being increasingly relied upon to deliver services and infrastructure which were traditionally under the purview of the Commonwealth, state and territory governments, and yet Commonwealth grants have decreased not increased,” Cr Firman said.

“We believe it is completely unacceptable that we should wear the responsibility without adequate funding.”

In addition, CMA research has shown that apportioning the grants based on population does not see funds go to where they are most needed.

In smaller country councils in NSW, the Grant can constitute more than 70 per cent of revenue, while income from rates and council fees is essentially stagnant and prospects for growing these income sources are extremely limited.

NSW Country Mayors deputy chair Mayor Russell Fitzpatrick said the report from the Auditor-General on March 31 confirmed that:

• 16 councils have insufficient cash to meet three months of expenses;

• 40 per cent of councils did not meet operating performance benchmarks;

• 35 councils met none, or just one, of the three key financial sustainability benchmarks; and

• Revenue growth lags expenditure growth after adjusting for inflation resulting in negative growth.

“We all know that Australia is a big country, there is no getting away from the fact that local councils take on the lion’s share of the responsibility for delivering services and infrastructure into our rural, regional and remote communities,” Cr Firman said.

“It is about time that this was recognised with appropriate levels of Commonwealth funding.”

Prior to the announcement of the election, the CMA had written to Prime Minister Anthony Albanese, Leader of the Opposition Peter Dutton and Leader of the National Party David Littleproud requesting meetings to discuss the issue.

At the time of going to print yesterday, no responses had been received.

“A recent Zoom meeting with Shadow Minister Darren Chester did not provide any indication that the Coalition was prepared to provide any leadership on the issue,” Cr Firman said.

“While the CMA appreciated the time the Shadow Minister took to meet with us, we seem to be on very different wavelengths.

“Local Government is constantly expected to step in to fill the service and infrastructure gaps left by the Commonwealth, and yet they seem to be ignoring the very real financial constraints that most councils are working under.

“Enough is enough! Something has to give, the status quo simply cannot continue.”

Deniliquin Pastoral Times Google News Panels

Tuesday, 6th May 2025

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