Opposition Leader Bill Shorten and QLD MP Mark Furner urged the Turnbull government to end the freeze on Financial Assistance Grants (FA Grants) this week, saying cuts mean councils across Australia have been forced to reduce services.
The Australian Local Government Association (ALGA) say they support the move and council funding must be a focus in the forthcoming budget.
ALGA President Mayor David O’Loughlin said the government needs to fulfil its election pledge to restore indexation.
“The government promised to end the freeze and ALGA has urged them to honour their promise in the coming budget and ensure indexation is restored to Financial Assistance Grants in 2017-18.”
“We are very pleased that the opposition supports this call and understands the fundamental importance of this funding stream to locals and their communities across the country," he said.
“We need certainty in the Federal budget this May that indexation will be restored to this critical funding and that our local councils will have the resources necessary to provide the level of services that every Australian community deserves.”
In a statement released on Tuesday, the Opposition Leader also proposed an economic boost through bringing forward one quarter of Financial Assistance Grants funding from the 2018-2019 period into 2017-2018. The proposal would inject nearly $620 million into local communities.
“These communities need jobs and they need them now. This will provide local economies with a shot in the arm which will mean more local jobs and more investment," the statement read.
QLD Minister for Local Government and Minister for Aboriginal and Torres Strait Islander partnerships Mark Furner backed the sentiment and said the freeze has rendered many councils incapable of providing community services to an adequate level.
“The Turnbull Government freeze has forced many local councils to do more with less as the cost of materials and services increases," he said.
“It’s a challenge that’s become particularly evident for smaller shire councils with fewer rateable properties, and those communities reeling from the effects of Cyclone Debbie and flooding."
More information about ALGA’s campaign to end the freeze and restore indexation to Financial Assistance Grants is available here.