FA Grants increase will throw a lifeline to councils

ALGA has urged the Federal Government to honour its pre-election commitment to provide “fair increases” in Financial Assistance Grants to local government.

President Cr Linda Scott said many local governments heavily rely on FA Grants to remain sustainable and urgently need an increase in this untied funding.

“Australian councils are facing significant financial challenges, especially in the wake of recent natural disasters,” Cr Scott said.

“Restoring FA Grants to at least one percent of Commonwealth taxation revenue would be throwing councils a much-needed lifeline, as well as being an investment in the liveability and productivity of our communities.”

Before the May 2022 election, Federal Labor committed to the “long-term financial sustainability of local government” through increases to grant allocations, including “fair increases” to Financial Assistance Grants.  see page 132 of the ALP’s 2021 National Platform.

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