Inquiry needs to find in favour of fairer funding
Published on 20 February 2025
The peak body for Queensland councils says a commitment to fairer funding must flow from the work of a Federal Inquiry into local government financial sustainability.
Following months of submissions and public hearings, the Standing Committee on Regional Development, Infrastructure and Transport has issued an interim report into local government sustainability which recognised the considerable financial strain councils are under.
Local Government Association of Queensland (LGAQ) Chief Executive Officer (CEO) Alison Smith said it was heartening to see the committee had acknowledged the impacts of cost-shifting and the expanding role of councils well beyond road, rates and rubbish, alongside other challenges.
However, Ms Smith said the committee’s final report needs to deliver a real, fair funding increase to support all councils to continue delivering the critical infrastructure and services their communities rely on.
“Expecting councils to continue to do more with less in the face of the evidence this inquiry has gathered shows just how dire the need is for fairer funding,” Ms Smith said.
“Councils were promised fairer funding in 2022, but this didn’t happen; instead, the percentage of Federal untied funding that councils receive has gone backwards.
“The pending Federal Election needs commitments from all political parties to not leave councils behind, to not leave councils stuck in the ‘70s.
“Councils need a contemporary funding model that responds to the increasing responsibilities they’re being asked to do, and which restores the percentage of untied funding that has been cut.
“As we said in our submission to the inquiry, the current Federal funding model is broken.
“And as we said when we appeared before the committee in July, our communities are hurting from the cost-of-living crisis, and so are our councils.
“Councils are weathering a perfect storm. For decades, they’ve been receiving a declining share of national taxation yet cost-shifts imposed on councils every year have been increasing by hundreds of millions of dollars a year.
“If councils are not financially sustainable, they cannot deliver the services their communities rely on, and deserve.”
Ms Smith said it was crucial the committee’s final report was delivered as soon as possible because action to support councils and their local communities was long overdue.
“Operating costs for Queensland councils grew by 29 per cent between 2012-13 and 2021-22, yet current grants increased by only 16 per cent,” Ms Smith said.
“In comparison, taxation revenue earned by the Federal Government has increased by 65 per cent in that same period.
“It is beyond time for fair funding for councils so they can serve their communities as they deserve.”
The LGAQ earlier this month launched its Federal Election platform calling on all candidates to back a suite of measures that will deliver real, on the ground support for communities and their residents that would deliver a $73.8 billion dividend to the Queensland economy and more than 105,000 jobs.
Along with a fairer funding model, councils are calling for improved insurance and disaster management to protect communities, including an expansion of the voluntary home buy back scheme, measures to make insurance more available and affordable and funding to build back better after natural disasters.
For more, visit: https://dontleaveusinthe70s.com.au