April 11, 2017
The Federal ALP has joined a push to have the Federal Government lift the indexation freeze on Federal Assistance Grants (FAGs) to local councils.
Opposition Leader Bill Shorten said on Tuesday that councils had been forced to cut services and lift fees because of the freeze.
He urged the Federal Government to bring forward $619 million from the 2018-19 Budget for Council grants, and to rule out any extension of the indexation freeze.
“These communities need jobs and they need them now,” Mr Shorten told AAP.
“This will provide local economies with a shot in the arm which will mean more local jobs and more investment.”
The Australian Local Government Association welcomed the Opposition’s call.
An ALGA spokesman said it addressed the challenges being faced by local councils as a result of the government-imposed freeze.
He said Council funding must be a focus in the forthcoming Budget.
According to the Federal Government’s own estimates, the freeze on FAGs indexation has stripped nearly a billion dollars from Council revenues over the four years to June 30, 2018.
In last year’s Budget the government signalled its expectation that annual indexation of FAGs would return from 2017-18, but this did not completely guarantee an end to the freeze.
“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,” ALGA president Mayor David O’Loughlin said.
“We are very pleased that the Opposition supports this call and understands the fundamental importance of this funding stream to local councils and their communities across the country.”
Related articles
