The need

Local government is the main provider of a wide variety of services that are essential to liveable communities. Many of these services are the responsibility of the state or federal government but are operated by Council on their behalf.

Across the local government sector, costs have been rising at a rapid pace – significantly greater than the consumer price index. Without an equal increase in funding, the financial sustainability of local governments is becoming increasingly precarious.

Council is being forced to prepare for a period of managed decline, where the quality and quantity of services is cut in order to preserve our finances. Without the other levels of government bearing more of the cost or providing revenue opportunities, this will only get worse.

The plan

Council is seeking recognition of the fact that the local government sector is bearing an increasing number of responsibilities and costs but is receiving less and less financial support from higher levels of government. This is particularly acute in Victoria, where there is a rate cap.

We are asking the Victorian Government to adopt the findings and recommendations of the recent Victorian Parliament Inquiry into Local Government funding and services.

The Australian Government also plays a key role in supporting local government through Financial Assistance Grants. We are calling on the Commonwealth to restore these to their original level of 1% of total federal tax revenue so that we can uphold the standard of service delivery expected by residents.

Benefits to the community

The community and all levels of government benefit from proactive and well-resourced councils. Non-government sources of support are especially scarce in growth areas where charities and private enterprises have not yet established themselves. It is essential that Council has the resources to provide these kinds of support services in addition to our regular duties.