Media Release: Local Government calls on Labor National Conference to recognise urgent funding needs

The Australian Local Government Association has welcomed growing momentum for fairer council funding at the Labor National Conference.

A proposal to establish a pathway to restore federal Financial Assistance Grants to one per cent of Commonwealth taxation revenue is under consideration at the conference.

ALGA President Mayor Matt Burnett said the prominence of council funding at the conference reflected the seriousness of the financial pressures facing local governments and their communities.

“It is encouraging to see fairer funding for councils being considered at the highest level of the Labor Party,” Mayor Burnett said.

“This is a long-standing national issue, and our call is for multi-partisan support.

“We welcome the attention it is receiving at Labor’s National Conference, and we recognise the role the Australian Services Union and United Services Union have played in getting it there, with support from the Australian Workers Union and many delegates.

“Together they represent a huge number of council workers, and we know that a strong council workforce means strong local government delivery.

“This is one of the most important issues facing councils across Australia, and it deserves full consideration by conference delegates and a place in Labor’s national policy platform.

“We are optimistic that delegates will recognise the importance of providing councils with a stronger and more sustainable funding foundation.”

Financial Assistance Grants are the primary source of untied federal funding for councils, allowing local governments to direct investment towards the services and infrastructure their communities need most.

However, the value of these grants has fallen from one per cent of Commonwealth taxation revenue in 1996 to just 0.49 per cent in 2026-27.

Mayor Burnett said this decline had occurred while councils were taking on greater responsibilities and managing significant increases in the cost of maintaining infrastructure and delivering services.

“Councils maintain local roads and bridges, provide libraries, parks, pools and community facilities, manage waste and stormwater, support housing growth and stand beside their communities through natural disasters,” Mayor Burnett said.

“These are not optional services. They are fundamental to the liveability, productivity and resilience of every Australian community.

“Councils are ready to do even more to support national priorities, but they need secure, predictable and untied funding that reflects the scale of the job they are being asked to do.”

Last month, local government leaders from across Australia endorsed an emergency motion calling for an immediate increase in untied funding for councils.

ALGA and every state and territory local government association also signed a joint letter to the Australian Parliament seeking a stronger funding partnership for the nation’s 538 councils.

Mayor Burnett said inclusion of fairer council funding in Labor’s national policy platform would represent an important step towards lasting reform.

“I hope conference delegates are given the opportunity to support a fairer future for councils and the communities they serve.”

Background
• Financial Assistance Grants have been a central part of federal funding for local government since 1974.
• The grants are untied, allowing councils to direct funding towards their communities’ individual needs and priorities.
• Financial Assistance Grants represented one per cent of Commonwealth taxation revenue in 1996 but have declined to 0.49 per cent in 2026-27.
• ALGA is calling for Financial Assistance Grants to be restored to at least one per cent of Commonwealth taxation revenue.