INVEST IN LOCAL GOVERNMENTS, BOOST NATIONAL PRODUCTIVITY

By Cr Linda Scott, President of the Australian Local Government Association

We all know investing in local governments across Australia is a smart economic decision for our Federal Government – boosting the economy and national productivity by stimulating every corner of the nation.

Local governments across Australia are working hard to rebuild infrastructure in the wake of increasing natural disasters due to dangerous climate change, saving to keep up with skyrocketing inflation and training the next generation of great people to fill growing skills gaps.

Of course, there’s also the constant challenge of financial sustainability, and ensuring councils can remain viable and continue to provide services to our communities.

Councils are sending a clear message to the Federal Government in the upcoming Budget – investing in councils is good for our national productivity, and this is a smart decision for the future.

Our 2023-24 pre-Budget submission has outlined several national funding priorities for Australia’s 537 councils, including restoring Financial Assistance Grants to at least one percent of Commonwealth taxation revenue, which Labor promised before the last election.

Research commissioned by ALGA shows Financial Assistance Grants make up more than 20 per cent of annual operating expenditure for around one in four Australian councils.

As momentum builds towards the budget, mayors around the nation are hosting their Federal Members of Parliament and Senators, highlighting what Financial Assistance Grants provide in their local communities. Extending these grants will throw councils a much-needed lifeline and would be an investment in the liveability of our communities.

Other local government Budget priorities include:

∞ Making the Local Roads and Community Infrastructure (LRCI) Program permanent with ongoing funding of $500 million per year, indexed annually

∞ An increase in Roads to Recovery funding to $800 million per year

∞ $300 million per year for four years for a strategic local roads program to address road congestion and first and last mile issues

∞ $250 million per year for four years for a new Regional Infrastructure Recovery Program

∞ $100 million per year over four years to help councils facilitate the delivery of affordable and social housing

∞ $50 million per year for four years to support local governments to reduce emissions and deliver increased climate action

Local government directly impacts broader economic productivity in at least nine ways, including urban infrastructure, mitigating externalities in urban development, placemaking and the visitor economy, land for housing, better local labour markets, climate mitigation and providing land for business, innovation and the circular economy.

While current financial pressures on Australian councils are immense, increased investment will help us to provide the essential services and local facilities our communities need now and into the future.

In a major advocacy win for local government, the Federal Government recently announced the return of the Australian Council of Local Government (ACLG), which will meet in Canberra for the first time in more than a decade on 16 June. Local government is finally back at the table!

This forum provides a valuable opportunity for mayors, shire presidents and councillors to share their community’s priorities and aspirations directly with the Prime Minister and Federal Ministers.

The re-establishment of the ACLG was a Federal Government commitment, secured by ALGA on your behalf, and we’re working closely with them to deliver this historic event that will follow and be informed by the discussions at our 2023 NGA from 13-15 June.

Registrations for the NGA are open online, and a speaker program is also now available.

We thank you for submitting your motions to be debated at the conference, which is the biggest annual gathering of local government leaders in Australia.

We’re expecting a record crowd this year and Canberra’s accommodation is booking fast, so get your early bird registrations in soon.

We look forward to seeing you in the nation’s capital for our 2023 NGA and the return of the ACLG this June.