News
20 February, 2025
Move on from the 70s
Moreton Bay and Somerset councils have joined the call for federal candidates to commit to overhauling a local government funding model they claim is outdated and broken in a new ad ampaign.
In an open letter published last week, the Local Government Association of Queensland (LGAQ) expressed concerns about the current state of the Financial Assistance Grants (FAG) system, which was introduced in the 1970s. The LGAQ claims the system is broken and requires urgent repair to ensure fair funding for councils, particularly in light of the ongoing cost-of-living crisis.
“As Queenslanders prepare to cast their vote in the 2025 federal election, they do so at a time of transition and growth for communities across Queensland,” said LGAQ chief executive officer, Alison Smith. She added, “The federal funding model supporting councils and their communities – introduced in the mid-1970s – is going backwards with untied funding for local governments continuing to fall as a percentage of Commonwealth tax revenue.”
The LGAQ argues that without further federal support, councils are left with limited options to fill the funding gap, such as raising rates or cutting services.
Queensland councils are responsible for maintaining a substantial amount of community infrastructure, including $150 billion worth of assets, 153,000km of local roads, 53,000 hectares of parks and playgrounds, 2,800 bridges, and $25 billion in water and wastewater infrastructure. However, councils only receive 3 cents of every $1 of taxation collected, the LGAQ points out.
As the 2025 Federal Election approaches, the LGAQ is calling on all candidates to prioritize local communities and commit to measures aimed at enhancing community liveability. These measures include:
Increasing untied funding to all councils to at least 1 percent of Commonwealth taxation revenue, indexed annually, and with payment timing certainty.
Establishing a new, permanent funding program to build and maintain essential community infrastructure.
Reinstating the 80:20 infrastructure funding split, allowing councils to submit directly to Infrastructure Australia and implementing the remainder of the LGAQ recommendations to the Federal Inquiry into the Sustainability of the Local Government Sector.
Improving the affordability and availability of insurance statewide, including for households, strata title holders, and businesses.
Extending funding for an ongoing, voluntary home buy-back program.
Addressing the digital divide by prioritizing investment in regional, rural, and remote areas underserved by telecommunications providers.
For further details, the LGAQ encourages people to visit their website at www.dontleaveusinthe70s.com.au.
