MidCoast Mayor, Claire Pontin has welcomed the Australian Labor Party National Conference’s commitment to develop a ‘Federation Compact’ with local government, describing it as an important step towards fairer and more sustainable funding for councils across Australia.
The commitment includes supporting ongoing increases to Financial Assistance Grants, greater flexibility in Roads to Recovery funding, and stronger support for councils delivering essential community services.
Mayor Claire Pontin said it was encouraging to see that the Federal Labor Government was listening to recent calls from local government to recognise the significant financial pressures many councils were under.
“Long-term financial sustainability is a challenge being experienced right across local government, and this announcement recognises that reality,” said Mayor Pontin.
“Over past decades more and more has been asked of local government, while at the same time, we’re facing unprecedented operational cost increases, ageing infrastructure, and decades of maintenance underfunding on our roads.”
Financial Assistance Grants from the Australian Government are the main source of untied funding for councils, allowing local governments to invest where it is needed most. However, the value of these grants has fallen from one per cent of Commonwealth taxation revenue in 1996 to just 0.49 per cent in 2026-27.
Mayor Pontin said restoring these grants over time would give councils greater certainty to plan for the future and invest in the infrastructure and services communities need.
“We welcome this commitment and look forward to seeing this commitment translated into practical funding that supports councils and the communities they serve,” she said.
.png)
