Financial Assistance Grants are councils’ primary source of untied Commonwealth funding, allowing local governments to direct investment according to their communities’ priorities.
Last month, Australia’s 538 local councils stood together in a step unprecedented in scale and unanimity.
They wrote 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, Federation mayor, Cheryl Cook, deputy mayor Rowena Black, general manager Adrian Butler along with Indigo Shire mayor, Sophie Price, deputy mayor, Jane Dowsley and chief executive Trevor Ierino attended the National General Assembly of Local Government in Canberra in June.
At the time, Mr Morgan told the Yarrawonga Chronicle that restoring the Financial Assistance Grants would increase Moira Shire’s share of funding from $15 million to $28 million annually.
He said the Shire’s extensive geographic footprint means that, unlike metropolitan councils with concentrated populations, Moira Shire Council provided services across dispersed communities and operated multiple facilities and service points.
This week, chair administrator, Dr Graeme Emonson said increasing federal Financial Assistance Grants was an important recognition of the financial pressures facing councils and their communities.
“The increasing cost of delivering services as well as increased expectations from growing rural communities puts real pressure on councils to be able to fund their operations without impacting on ratepayers,” Dr Emonson said.
“Federal Assistance Grants are vital for councils to ensure their communities are not left behind; increases in these grants will help us to lessen the funding gap.
“We look forward to this policy discussion being finalised and making its way into tangible funding outcomes for local government.”
Federation Mayor Cheryl Cook welcomed the announcement saying the commitment was particularly important for rural and regional communities.
“For regional councils, every dollar of secure and untied funding makes a real difference to our ability to maintain local roads, deliver essential services and invest in the infrastructure our communities need,” Cr Cook said.
“Our communities deserve access to reliable local services and infrastructure, regardless of where they live, and councils are often best placed to understand and respond to those local needs.”
Mayor Sophie Price said Indigo Shire saw the vote as a step in the right direction; however, she said it fell well short of returning Financial Assistance Grants to one per cent of taxation revenue.
“The Commonwealth can keep 99 per cent, just give the sector the one per cent it needs.”
“The Commonwealth can keep 99 per cent, just give the sector the one per cent it needs,” Cr Price said.
“Half a per cent is simply not enough for struggling councils, and combined with rate capping, it's crippling councils like Indigo.
“It should not be our community that makes up the difference."
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