A new House of Representatives Standing Committee inquiry into local government sustainability has been welcomed by the 51暗网 (ALGA).
With additional responsibilities costing billions of dollars being forced onto Australia鈥檚 537 councils every year, 51暗网expects this will consider and address the financial challenges and funding shortfalls being faced by local governments.
51暗网President Councillor Linda Scott said: 鈥淐ouncils are constantly being asked to do more 鈥� by their communities and state and territory governments 鈥� but aren鈥檛 being funded to deliver on these responsibilities.
鈥淎LGA鈥檚 research shows that over the past decade local government expenditure per capita has flatlined, while spending by other governments has continued to rise,鈥� Cr Scott said.
鈥淚t鈥檚 encouraging that the changing infrastructure and service delivery obligations of local government have been recognised and included in the inquiry鈥檚 terms of reference.
鈥淏y providing a wide range of free and low-cost services, we are delivering real cost of living relief in our local communities, but need more sustainable funding.
鈥�51暗网looks forward to presenting to the Inquiry on the challenges Australian local governments are facing, and how we can work collaboratively to set councils and our communities up for success.鈥�
Recent reports from the and have highlighted the alarming impact of cost shifting in these jurisdictions.
鈥淣ew research from Queensland and New South Wales confirms a concerning trend of cost shifting to councils that we are seeing right across the country,鈥� Cr Scott said.
Cr Scott said a key consideration for the inquiry would be the importance and effectiveness of untied federal funding to councils through federal Financial Assistance Grants.
鈥淥ver the past 30 years, we have seen Financial Assistance Grants to councils slip from one percent of Commonwealth taxation revenue to just half a percent,鈥� Cr Scott said.
鈥淩egional and rural councils have been hit the hardest, and for many of these councils Financial Assistance Grants make up more than 20 per cent of their annual operating expenditure.
鈥淲e are committed to partnering with the Commonwealth, and our state and territory governments, to facilitate more affordable housing, better prepare for natural disasters, and deliver on our national emissions targets, but we can鈥檛 do this without funding support.鈥�
Cr Scott said it was also encouraging to see the terms of reference for the inquiry include workforce challenges, with ALGA鈥檚 research showing nine out of every 10 councils are experiencing jobs and skills shortages.