Local government financial sustainability in the spotlight

By Melissa Coade

March 25, 2024

Anthony Albanese-Kristy McBain
PM Anthony Albanese and Minister for regional development, local government and territories Kristy McBain. (AAP Image/Mick Tsikas)

Catherine King has described the need for a review of the local government sector as critical, as a parliamentary committee is set to travel around Australia to understand how the federal government can fulfil its role as a “trusted partner”.

The inquiry will consider a range of issues concerning urban, regional and remote local governments, including worker security, financial sustainability and cost-shifting.

In a statement, King thanked the parliamentary committee for accepting the task of leading the inquiry and noted that the task of understanding pressing issues from stakeholders was underway.

A referral for the standing committee on regional development, infrastructure and transport to look into the issue by the local government minister was accepted earlier this month.

“Local councils deliver the essential services our communities rely on,” King said.

“That’s why the Australian government is committed to partnering with local government through programs like Financial Assistance Grants, Roads to Recovery, the Safer Local Roads and Infrastructure Program and the Black Spot Program.”

The inquiry’s terms of reference show local councils’ changing infrastructure and service delivery obligations will be examined, and the role the federal government should play in addressing these issues.

The committee will also explore the impacts of labour hire practices on the local council workforce and the challenges the sector faces in attracting and retaining skilled workers.

Minister for regional development, local government and territories Kristy McBain said she was interested in what the inquiry would learn about how future funding arrangements and program delivery needs were being met.

“From day one we’ve brought local government back to the table as a trusted delivery partner of the services our communities rely on,” McBain said.

“I welcome this inquiry, which will build on the extensive feedback we’ve received from the local government sector over the last 18 months, and help inform how we can strengthen their capacity to deliver better outcomes in our communities.”

People interested in submitting to the inquiry are being invited to share their input by May 3, 2024.


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