Media Release: Councils need disaster funding reforms that support recovery for all communities

Australia’s local governments are calling on the Federal Government to ensure proposed changes to national disaster recovery funding do not shift further financial pressure onto councils and communities already under strain from frequent and severe disasters.

The proposed changes would bring in a 50:50 funding partnership between the Commonwealth and state and territory governments. Councils are concerned the new arrangements will see them left to carry increased costs after disaster events.

The Australian Local Government Association yesterday appeared before the House of Representatives Standing Committee inquiry into the financial sustainability of local government to highlight the impact increasing responsibilities and decreasing funding is having on councils.

ALGA President Mayor Matt Burnett said councils across Australia needed certainty that the reforms to Disaster Recovery Funding would strengthen, rather than weaken, their ability to help communities recover.

“We are seeing serious concerns raised in Queensland and New South Wales, and we know local governments in other states and territories are concerned about how the proposed changes will affect them,” Mayor Burnett said.

“We don’t want to see any community or council go backwards as a result of these changes.

Mayor Burnett said the proposed thresholds for accessing Commonwealth support remained a major concern for councils, with fears that higher thresholds could exclude councils facing smaller-scale events from accessing recovery funding, and that the proposed model may disadvantage disaster-prone jurisdictions.

“Disasters do not stop at borders, and the ability of a community to recover should not depend on where it is located or the financial capacity of its local council.”

Disaster recovery funding and the growing financial burden on councils were major issues raised at ALGA’s recent National General Assembly, where delegates from across Australia endorsed an urgent call for fairer and more sustainable funding for local government.

Additionally, delegates voted to support a motion calling on the Federal Government to maintain current funding arrangements, to ensure local councils are not further burdened in recovering from natural disasters.

Mayor Burnett said ALGA would continue to work constructively with the Federal Government, states and territories during consultation on the Framework.

“We support reforms that reduce red tape, improve resilience and help communities build back better,” he said.

“But the test must be simple: will these changes leave councils and communities better able to recover from disasters, or will they leave them carrying more of the cost?

“The Federal Government must ensure the answer is the former.”