June 5, 2025
Toowoomba Mayor Geoff McDonald says a $13.5 million cut in Federal Government Financial Assistance grants was having a “significant” effect on Council’s Budget.
“The Federal Government provides this money for the day-to-day running of Councils, just like a wage supports a household,” Mayor McDonald said.
“FA grants are used to take the pressure off ratepayers to fund our business-as-usual activities, just like a household wage might help pay for fuel, electricity, rent or mortgage repayments.
“This money helps us keep our budget balanced and in surplus. Without it, our bottom line is hurting.
“In the 2021-22 financial year, TRC received over $19 million in FA grants. The amount we received this year was just $5.5 million, a $13.5 million decrease.
“For a household, it’s the equivalent of going from a double-income home to a single income while still trying to fund the same expenses.
“To deal with these cuts, we need to look at other ways of making up that revenue, or by putting a pause on services we deliver to our community.
“The reductions have been explained to us as being because of TRC’s sound financial position, however, our community shouldn’t be punished due to disciplined financial management, which is exactly what has happened.
“To make matters worse, in the formulation of our 2025-26 Budget, there is no certainty at all regarding the amount, or timing, of FA Grants we will receive next financial year.
“The equivalent for a household to this might be turning up for work every day not knowing how much you’ll be paid for the fortnight.
“Earlier this year, TRC joined the Local Government Association of Queensland’s campaign calling for fairer funding of local governments across Queensland, and we will continue to advocate for a better deal on behalf of our community.”
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In April, southburnett.com.au reported that the South Burnett Regional Council has also been negatively affected by a reduction of $600,600 in annual FA grants.
Mayor Kathy Duff said that in 2008-09 – the first year of amalgamation – the SBRC received an FA grant allocation of $7,841,223.
The current allocation was $6,867,243 despite inflation over the past 17 years.
Alongside other councils, the SBRC has appealed to the Federal and State governments for a fairer, larger and more equitable distribution of FA grants.
The funding cuts were made by the Queensland Grants Commission, I expect based on need and available funds. This is a smokescreen by TRC and SBRC to hike up rates.