Glen Innes Severn Council has joined a statewide campaign calling on the Federal Government to restore what regional councils say is fair and sustainable funding for local government in regional New South Wales.
The “Invest in Us” campaign, led by the Country Mayors Association of NSW, is seeking an increase in Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue. Following the recent Federal Budget, the grants now represent 0.49 per cent of Commonwealth taxation revenue, less than half their original level.
Mayor Margot Davis said the campaign highlighted growing funding inequities between metropolitan and regional communities.
“Regional councils maintain extensive infrastructure and deliver essential services across large areas with smaller populations and limited revenue bases. Yet Commonwealth funding has declined over decades, while service expectations remain the same,” Davis said.
Davis said councils were increasingly being required to manage rising costs, cost shifting and declining real funding.
“Unlike State and Federal Governments, councils cannot operate in deficit. When funding does not keep pace, the pressure falls back on local communities.”
She said the structural funding gap had contributed to councils seeking Special Rate Variations (SRVs) to maintain financial sustainability.
“In Glen Innes Severn, a cumulative SRV of 48.3 per cent over three years has been approved as part of restoring long-term sustainability. No council wants to increase rates, and we understand the impact this has on residents, farmers and businesses,” she said.
“However, these decisions are often driven by decades of underfunding across Local Government. The sector has consistently advocated for restoring grants to one per cent, including direct correspondence with the Prime Minister.”
Davis said restoring federal funding would ease pressure on councils and ratepayers.
“Restoring funding would be a relatively small adjustment in the Federal Budget but would significantly improve councils’ ability to maintain infrastructure, reduce pressure on ratepayers and strengthen long-term sustainability,” she said.
She said the funding shortfall also affected community confidence in local government.
“Councils are often seen as the source of rate increases, but many underlying causes sit outside local control. Fairer funding would reduce that pressure and support better outcomes for communities.”
Council said it would continue advocating alongside local government organisations and sector partners for a funding model that reflects the challenges facing regional communities and supports long-term sustainability.
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