As part of its Submission to the 2016 – 2017 Federal Budget, the Australian Local Government Association (ALGA), has asked for certainty the indexation of Financial Assistance Grants (FA Grants) will be restored.
The 2016-17 Federal budget out-years signalled an expectation that annual indexation of FA Grants would return from 2017-18.
"Although we welcome this indication, it does not completely guarantee an end to the freeze,", said Prospect Mayor and ALGA President David O'Loughlin
"We need certainty in the Federal budget this May that indexation will be restored to FA Grants and that our local councils will have the resources necessary to provide the level of services that every Australian community deserves."
In 2014 the Federal Government enacted a freeze on the indexation on Financial Assistance Grants (FA Grants) for the next three years as part of the 2014 Budget. The freeze represented a potential loss of $900 Million in revenue by 2017/2018.
In 2014 almost 900 delegates at the National General Assembly (NGA) in Canberra supported an urgent motion moved from the floor on day one of the Assembly to highlight the impact the Federal Budget's FA Grants decision would have on local councils and their communities.
To see the full ALGA budget submission go here.