The South Burnett Regional Council will join the Australian Local Government Association’s (ALGA) push to make council grant funding an issue at the next Federal election.
On Thursday, Mayor Keith Campbell said the Council will receive $12,051,181 in grant funds for its 2018-19 Budget from the State and Federal Governments.
However, while he was grateful for any grant funding the Council received, he noted that Federal Assistance Grants (FAGs) have not kept up with inflation.
“At the time of Local Government amalgamations in 2008, Council received $7,841,223 in FAGs,” the Mayor said.
“But for the 2018/19 budget, that amount has decreased to $6,998,730.”
The Mayor said in 1996, FAGs funding was equal to around one per cent of Commonwealth tax revenue.
Today, the figure has fallen to just under 0.55%.
“This has left our Council, and most every other Council in Australia, worse off,” Mayor Campbell said.
“FAGs funding has not kept pace with the growth in Commonwealth Taxation Revenue or with the increased demand for services and infrastructure in local communities.
“The result is increased pressure on rates and our budget, making it harder to maintain community services and infrastructure.”
Mayor Campbell said he and his fellow Councillors intend to stand shoulder-to-shoulder with the ALGA to make this an issue in the next Federal election, which is expected to be held by next May.
“We want to secure a better deal on federal funding for Local Government from the next Federal Government,” the Mayor said.
The ALGA will be calling for Council FAGs funding to be pegged to at least one per cent of Commonwealth tax revenue.
“Irrespective of whether it’s a Liberal/National Government or a Labor Government, we will be part of the drive to ensure all parties at the next federal election commit to restoring a more sustainable approach to the FAGs funding arrangement,” he said.
“If the FAGs is not increased, continuing pressure will be applied to Council’s Budget.
“In reality, ratepayers will need to contribute more to retain the services that are provided if more does not come forward from grants.
“The alternative is to get rid of some services, however that’s not a palatable proposition because no one wants to lose any service they currently enjoy.”
