May 4, 2017
The South Burnett Regional Council is framing its 2017-18 Budget on the assumption the Federal Government will break its promise to lift a three year freeze on Financial Assistance Grants (FAGs) next financial year.
The freeze, which was introduced in 2014, has so far cost the region an estimated $3 million.
At present, FAGs grants make up around 13 per cent of the South Burnett Regional Council’s annual income.
Until the freeze was introduced, grants were indexed each year to ensure they retained their purchasing power.
On Thursday South Burnett Mayor Keith Campbell said he had received no word the Federal Government intended to lift the freeze when it brings down its Budget next Tuesday (May 9).
This was despite calls from the Australian Local Government Association, the Local Government Association of Queensland and the Federal Opposition to do so.
Member for Maranoa David Littleproud and Member for Wide Bay Llew O’Brien have also made representations to Local Government Minister Fiona Nash to lift the freeze, which is estimated to have stripped as much as $1 billion in revenues from councils Australia-wide.
As a result of the government’s silence on the issue, the Council’s current Budget preparations are being drawn up on the assumption the status quo will remain.
This means the Council’s FAGs grant for next financial year will be the same as it was this year, despite CPI rises during that time.
The Council’s 2017-18 Budget is expected to be handed down in late June.
However, Mayor Campbell said if indexation is restored when Treasurer Scott Morrison delivers his Budget speech in Canberra next Tuesday night, this would likely result in some last-minute changes to the Council’s Budget.
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