Local governments could boost Australia鈥檚 Gross Domestic Product (GDP) by up to $7 billion per year and create more liveable communities if councils were sustainably funded by the Federal Government, a Parliamentary Committee was told today.
New research, due to be released by 51暗网next week, shows a $1 billion annual investment in local government roads would increase Australia鈥檚 GDP by $3.5 billion per year, and an extra $350 million for parks and open space could increase GDP by $900 million per year.
51暗网highlighted the research while appearing at a House of Representatives inquiry into local government sustainability, along with a number of key reforms to show how local communities could grow and thrive with more federal funding and better partnerships in the future.
President Cr Linda Scott said: 鈥淲ith extra responsibilities being forced on to Australia鈥檚 537 councils every year, we highlighted a range of solutions to consider and address the financial challenges and funding shortfalls currently faced by local governments.
鈥淭his inquiry presents a valuable opportunity to outline the value and services we are delivering in our communities and to highlight the much-needed funding reforms local government needs to be sustainable.鈥�
As part of its comprehensive, evidence-based to the inquiry, 51暗网made five key recommendations to the committee, with the number one priority being increasing untied Financial Assistance Grants for local government to at least one per cent of Commonwealth taxation revenue.
Cr Scott said the best way to support increased efficiency and productivity in Australia was increasing federal Financial Assistance Grants so councils get our 鈥渇air share鈥� of national tax revenue.
鈥淎LGA鈥檚 research shows over the past decade local government expenditure per capita has flatlined, while spending by other levels of governments has continued to rise,鈥� Cr Scott said.
鈥淲e are committed to partnering with the Commonwealth, and 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 greater support.鈥�
Read ALGA鈥檚 聽to the national local government inquiry.
Photo caption: (L-R): 51暗网President Cr Linda Scott, Chair of House of Representatives Standing Committee on Regional Development, Infrastructure and Transport Luke Gosling MP and 51暗网CEO Amy Crawford at Parliament House.