Restoration of SGFA funding needed to help Indigenous communities thrive

Published: 27th April 2017

As part of its recently launched 2017 Advocacy Action Plan, the LGAQ is seeking restoration of State Government Financial Aid (SGFA) funding to pre-2012 levels for Indigenous councils. The funding is provided as recurrent grants to meet the costs incurred by Indigenous councils to provide essential local government services.

The LGAQ is pushing for full indexation to be returned to the grants to reflect the increased cost of doing business in remote and isolated communities. The LGAQ is requesting funding to be commensurate with levels prior to the cuts made by the previous government; an increase to $34.5 million per year.

SGFA funding is the main source of discretionary funds available to Indigenous councils. For councils which are significantly disadvantaged in their capacity to raise revenue, the decision to reduce funding by 10 to 20 percent in 2012 posed substantial problems for communities. These included a reduction in employment and a hindered ability to pursue economic development opportunities.

The LGAQ and its member councils are committed to economic development and are seeking support to achieve this outcome through a genuine and productive partnership with the State Government. Policy Executive member and Palm Island Mayor Alf Lacey, says that returning funding to pre-2012 levels would enable communities to move forward.

"Returning the funding to its former self is a step in the right direction in letting Indigenous councils get on with the business they need to do," Mr Lacey said.

The issue was raised at the last Indigenous Leaders Forum (ILF) and Mr Lacey hopes to raise the issue with the Minister for Local Government and Aboriginal and Torres Strait Islander Partnerships, Mark Furner, during his visit to Palm Island today; his first visit to the island since his ministerial induction.