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Budget contains some good news for local councils but more needs to be done to unlock community potential

The Morrison Government’s 2019/20 Federal Budget makes good progress in addressing some of the infrastructure issues facing local councils but is a missed opportunity in delivering a fairer share of revenue back to our local communities according to the President of the Australian Local Government Association (ALGA), Mayor David O’Loughlin.

The Budget includes an increase in next year’s base funding for the Roads to Recovery program from $400m per annum to $500m per annum from 2019-20, and also sees increases in the annual funding for the Roads Safety Federal Blackspots and the Bridges Renewal programs of $50m and $25m respectively.

Regional Airports also benefit with a $100m package over four years to assist with essential capital works. Councils will also be eligible to apply for funding from a package of $190m over four years for upgrading community sports facilities and accommodating female change rooms.

“The additional infrastructure funding in this Budget is essential and although well short of what we requested is strongly welcomed. It will allow councils to make some progress in addressing our infrastructure backlog which has been put at around $30 billion with almost 10% of local roads and bridges in poor or very poor condition,” said Mayor O’Loughlin.

“The increase in funding for local roads may also help to address some of the urgent access problems heavy freight vehicles have on local roads which were not built to take today’s high productivity heavy vehicles. There is an allocation of $6 million in funding for the National Freight and Supply Chain Strategy to assist councils by funding engineering assessments for local government roads.

But this falls well short of ALGA’s request for a dedicated freight investment program of $200m per annum.

Local government is responsible for 75% of our road network, more than 650,000 kms in length, and cannot maintain this asset with just 3.6% of the nation’s tax revenue.”

“This Budget fails to address this fundamental mismatch of revenue and responsibility. It does not respond to ALGA’s call to restore FAGs to 1% of national tax revenue given that it has now fallen to just 0.55%.

The Budget also fails to restore the reductions in local government grants made in the 2014-15 Budget and more generally falls well short of ALGA’s requests across our Budget priority areas. Nevertheless, the increases announced while modest are a step in the right direction and we intend to continue our discussions with the Government and the Opposition regarding restoring a fairer share of taxation revenue to our local communities.”

Media enquiries: Roz Chivers, Executive Director Policy and Research, Australian Local Government Association (ALGA), 0438 768 359, 02 6122 9414, Roslyn.chivers@alga.asn.au

Available for interview: Mayor David O’Loughlin, President Australian Local Government Association (high resolution head shot available at this Dropbox link)

Submission to the 2019-20 Federal Budget

This submission outlines 13 initiatives developed on behalf of the 537 councils across Australia and the state and territory local government associations. These initiatives will support much needed additional investment in local communities and are designed to benefit every community by improving local services and infrastructure, promoting fairness and boosting local, regional and national productivity.


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