$284 Million Commonwealth Funding Hole Opening Up

ACT Greens Municipal Services spokesperson Andrew Braddock MLA has called on the ACT Government to urgently back the Australian Local Government Association (ALGA)’s campaign to restore Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue – to ensure Canberra is adequately funded for basic municipal services.

“The Federal Labor Government is short-changing local Government services across the nation including Canberra. But when 538 Councils raised their voices calling for funding to be restored to historical levels, the ACT Labor Government was suspiciously quiet,” said Mr Braddock.

ACT Budget papers reveal that Financial Assistance Grants, the untied Commonwealth funding stream for local government functions, have collapsed to just $15.9 million this year, after the Commonwealth paid next year’s allocation early to make last year’s budget look better.

Even when that distortion washes out, the ACT’s forward estimates show a structural shortfall of more than $284 million over four years compared to what the Territory would receive if grants were restored to one per cent of Commonwealth taxation revenue.

“This volatility makes it impossible to plan and maintain the roads, parks, pools and community facilities Canberrans rely on,” said Mr Braddock.

“Public libraries in Civic, Erindale and Kippax have lost all weekend hours. Suburban shopping centres at Kingston, Chisholm, Cooleman Court and Kippax are only now receiving basic upgrades that residents have needed for years. Cracked footpaths, worn out playgrounds, aging pools. These are the inevitable results of Labor’s funding shortfalls.

ACT Greens Leader Jo Clay MLA said the ACT Labor Government must act.

“Financial Assistance Grants must be restored to at least one per cent of Commonwealth taxation revenue – a secure, untied, formula-based funding stream that can’t be raided or brought forward for Commonwealth budget management purposes.

“The independent Eslake report told us Canberra is being squeezed. These budget numbers show exactly how. It’s time ACT Labor started fighting for the fair deal Canberrans deserve.”