They have written to the Speaker of the House of Representatives to warn of a financial crisis affecting local government across the country and called for the Australian Parliament to deliver an immediate increase of $3.5 billion, restoring Financial Assistance Grants to 1 per cent of annual federal tax revenue.
Moira Shire Council’s chief executive, Matthew Morgan attended the National General Assembly of Local Government in Canberra last week and said restoring the Financial Assistance Grants would increase Moira Shire’s share of funding from $15 million to $28 million annually.
In a submission to the Inquiry into Local Government Funding and Fiscal Sustainability earlier this year, Council highlighted the critical financial sustainability challenges facing rural and regional councils.
The Shire’s extensive geographic footprint means that, unlike metropolitan councils that benefit from concentrated populations, Moira Shire Council must provide services across numerous dispersed communities while operating multiple facilities and service points.
Mr Morgan said every dollar in the council’s annual budget was carefully considered to ensure real value was delivered to the community, while adhering to the 2.75 per cent rate cap.
“We are also being transparent with our community about Council’s financial position,” Mr Morgan said.
“Our long-term adjusted underlying result remains in deficit, and we will be developing a Financial Sustainability Strategy by November 30, 2026.
“This Strategy will set out a clear pathway to achieving a financially sustainable position by 2028/29, and the community will have a genuine role in shaping its direction.”
Federation Council mayor, Cheryl Cook was also at last week’s National General Assembly.
Cr Cook said that over the last 30 years, councils had watched the Commonwealth Financial Assistance Grants dwindle from 1 per cent of federal tax revenue to less than 0.5 per cent.
"We are being asked to do much more with drastically less," Cr Cook said.
"For regional and rural councils like Federation, this isn't just a line item on a balance sheet; it is about the survival of our community’s most basic lifelines.
“Without adequate resources backed by the Federal Government, maintaining essential day-to-day services is becoming an impossible task.
“We cannot rely on ratepayers to plug a systemic funding gap created in Canberra ... the time for talk has passed.”
Cr Cook said the call was clear and not unreasonable, and what councils need to plan with confidence and be able to invest in the future.
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