Murray River Council has resolved to initiate collaboration with other regional councils to advocate for increased local government funding, calling for a minimum allocation of 1% of Commonwealth taxation revenue.
The move comes as councils across Australia face mounting financial pressures. A recent submission by the Australian Local Government Association (ALGA) to the Inquiry into Local Government Sustainability highlighted the critical need for adequate and secure funding to ensure councils can effectively plan and deliver essential services.
The ALGA submission underscored the limited revenue options available to local governments and their heavy reliance on Commonwealth Financial Assistance Grants (FAGs). Alarmingly, annual FAGs have decreased from 1% of Commonwealth taxation revenue in 1996 to just 0.5% today.
During the same period, councils in New South Wales have also contended with 'rate pegging' and significant cost shifting from both state and federal governments, leaving many rural and regional councils struggling to remain financially sustainable.
"Advocacy for restoring local government funding to the 1996 level of 1% of Commonwealth taxation revenue has been ongoing for years, yet progress has been slow," said Mayor, Cr John Harvie.
"With a federal election looming, there has never been a better time for councils and representative bodies to amplify their voices. The current funding model is unsustainable, and the consequences are being felt by ratepayers and communities everywhere."
The Council also reiterated the importance of constitutional recognition of local government as a formal tier of government, strengthening its role and securing its funding future.
Murray River Council's resolution authorises the Mayor and Chief Executive Officer to actively lobby other councils to join this critical campaign, ensuring that local governments receive a fair share of Commonwealth revenues.
"Local councils are the backbone of their communities. It's time for real action to ensure they can continue delivering vital services and infrastructure for future generations," Mayor Harvie said.
