February 13, 2025
Nationals Leader David Littleproud says a Coalition Federal Government would “try to look at and recalibrate” the size of the Financial Assistance Grants to local councils.
Mr Littleproud was questioned about the grants – which provide a large chunk of revenue for regional and remote councils – while talking to a rural radio station in NSW on Thursday morning.
Financial Assistance Grants have declined from 1 per cent of Commonwealth taxation revenue in 1996 to just 0.49 per cent in 2023-24 .
The Australian Local Government Association says the estimate for 2024-25 is 0.51 per cent.
Mr Littleproud told Radio 2BS Bathurst that the Federal Government allocated the grant money to the State governments which determined the amount distributed to each individual council.
“In my home state of Queensland, they’ve recalibrated that calculation to give more to the smaller councils because they have less of a rate base,” Mr Littleproud said.
“In Sydney City, they could move the rates by 0.1 per cent. That’ll turn (in) millions of dollars. To get the same amount in a little council, you’d have to lift rates by 5 to 10 per cent and that kills us all.
“So this is where there’s an opportunity for us to lean in and change that calculation.
“And it’s something we started to do when we were in government and something we’ll continue to try to look at and recalibrate, how the pie is cut.”
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