The Federal Government confirmed that indexation will be returned to Financial Assistance Grants (FA Grants) in this week's Federal Budget release.
LGAQ President and Sunshine Coast Mayor, Mark Jamieson said the Government’s decision to honour its commitment to restore indexation to FA Grants would be a welcome relief to Queensland Councils.
“Returning indexation to these grants has been an advocacy priority for the LGAQ and the Australian Local Government Association since the freeze on indexation in 2014. We welcome the common-sense decision by the Government to return this vital funding to Queensland councils who now have some certainty in their ability to plan and invest in important infrastructure and projects in their communities," Mayor Jamieson said.
According to the Government’s own estimates, its 2014 budget move to freeze indexation to FA Grants cost Queensland local communities more than its $150 million of services and infrastructure over the three years, with the biggest impact felt by councils in regional and remote areas.
The 2017 Budget Papers also included an announcement to invest $8.4 billion in inland rail between Melbourne and Brisbane.The inland rail line would connect Melbourne to Brisbane via the NSW city of Parkes, where it would intersect with the Perth-Sydney line.
A further $1.34 billion has been earmarked for natural disaster payments, with more expected due to cyclone Debbie and a further $5 million will be invested to encourage tourism back to Queensland and revitalise affected communities.
President Mark Jamieson said the budget demonstrated a clear desire to invest in Queensland.
“We look forward to working with our 77 member councils and supporting them to take advantage of the investments in Queensland outlined in today’s budget¨. Mayor Jamieson said.
To see a complete summary of the 2017 – 2018 Federal Budget and major funding announcements relevant to Queensland local governments go here.