Campaspe Shire Council is directing its federal election advocacy at compensation for water purchasing impacts and increasing Financial Assistance Grants.

Its Advocating for a Brighter Tomorrow campaign pushes six main points to work with the next Federal Government on.

Compensation to residents who are negatively impacted by the open market water purchasing program is one of these areas.

“Based on research, our past experiences and what the government’s own document tells us, negative impacts of water buybacks on our agricultural and food manufacturing sectors as well as on businesses, families and whole communities are likely to occur,” Campaspe Shire Mayor Daniel Mackrell said.

A report by the Department of Climate Change, Energy, the Environment and Water references the “variable outcomes in different communities and lived experience of socio-economic impacts” of the Murray-Darling Basin Plan.

“Our advocacy aims to gain assurance from the incoming Federal Government that any Campaspe community negatively impacted by the government’s water purchasing program, such as suffering job losses, business downturn and/or reduced social participation levels, will receive fair, direct and timely adjustment assistance,” Cr Mackrell said.

“Our irrigation communities, and the multiple industries and economies that rely on them, would be at risk if not appropriately and adequately supported in the transition process.

“Business downturn and job losses create a ripple effect on the social fabric of communities.

“That’s why it’s vital that the incoming Australian Government compensates communities before any negative socio-economic impacts take hold so our communities can continue to thrive and prosper.”

Another area of advocacy has been a collaborative effort with fellow regional councils, seeking the increase in local government Financial Assistance Grants.

Historically, these grants, which heavily subsidise local council budgets, have accounted for one per cent of federal taxation revenue.

Cr Mackrell said they has declined by about 50 per cent since 1996, on top of other barriers councils are facing.

“At the same time Financial Assistance Grants revenue has been cut, Victorian councils have also had to contend with imposed rate capping and ongoing cost shifting from both state and federal governments,” Cr Mackrell said.

“The compounding impacts of this situation are increased challenges for councils to find alternative revenue streams to fund services and projects, and to achieve financial sustainability.

“That’s why we’re seeking a commitment by the incoming Australian Government to restore Financial Assistance Grants to the 1996 level of one per cent of Commonwealth taxation revenue.”

Financial Assistance Grants provide councils with untied funding, meaning it is at their discretion where the money is best spent.

“Whether it’s building new infrastructure, delivering services to meet community needs, maintaining assets or investing in operational improvements, Financial Assistance Grants give us flexibility to allocate the funding towards our specific goals and priorities,” Cr Mackrell said.

“Like our metropolitan counterparts, rural and regional councils also deliver more than 100 services and large-scale infrastructure projects to their communities, but they have a much smaller rates revenue base.

“So, any cut to Commonwealth grants only adds to the financial pressure experienced by rural and regional councils.”

In March 2024, the Federal Government adopted an inquiry into local government sustainability.

The Australian Local Government Association provided a submission addressing the need for adequate local government funding to ensure service delivery, limited revenue options and reliance on Financial Assistance Grants.

“Financial Assistance Grants not only help councils deliver vital services, they also help councils build financial resilience for the future,” Cr Mackrell said.

To access Campaspe Shire Council’s Advocating for a Brighter Tomorrow campaign, including an advocacy booklet, video and ways to be involved, head to campaspe.vic.gov.au/FederalAdvocacy

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