January 23, 2017
Local councils have called on the Federal Treasurer to deliver on a promise to restore the indexation of Financial Assistance Grants (FAGs) payments in the 2017-18 Federal budget.
A pre-Budget submission from the Australian Local Government Association said the three-year freeze on FAGs indexation introduced in the 2014-15 Federal Budget had stripped nearly a billion dollars from Council revenues over the period up to 2017-18.
ALGA President Mayor David O’Loughlin said it was ultimately communities that felt the pain of the freeze, which continued to have a significant impact on councils, particularly those in rural and remote areas.
“Financial Assistance Grants are an important untied payment to councils from the Australian Government which are invested in essential community infrastructure and services ranging from local roads to swimming pools,” Mr O’Loughlin said.
“As a result of this freeze, councils and their communities are missing out on expected revenue that would have otherwise been used to maintain safe and reliable road networks, fix local community infrastructure and fund crucial community services such as parks, libraries and community amenities.
“It has been a particularly painful three years for rural and remote councils which remain highly dependent on FAGs funding to meet day-to-day service-delivery costs; funding certainty is critical for these communities.”
The 2016-17 Federal Budget included an expectation that annual indexation of FAGs would return from 2017-18.
“Although we welcome this indication, it does not completely guarantee an end to the freeze,” Mayor O’Loughlin said.
“We need certainty in the Federal Budget this May that indexation will be restored to FAGs and that our local councils will have the resources necessary to provide the level of services that every Australian community deserves.”
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