Labor factions join to push for $6bn local government increase

Figures from Labor’s Left and Right factions will urge the party’s national conference to agree to boost local government funding to $6bn each year.

United Services Union secretary Graeme Kelly.

The Albanese government will be urged to commit at least 1 per cent of taxation revenue, about $6bn a year, for local government infrastructure and program spending by senior figures from the Right and Left factions at Labor’s ­national conference.

An amendment to the policy platform to be moved by United Services Union secretary Graeme Kelly, from the Right, and Sydney City councillor Linda Scott, from the Left, has been lodged for debate at the national conference in Brisbane on ­August 17-19.

The motion, obtained by The Australian, commits the party to striking a new “working partnership with local government” and requires the Albanese government to “provide funding through the ongoing Financial Assistance Grants to at least one percent of Commonwealth taxation revenue”.

This would increase spending from about $3bn to $6bn each year.

The amendment further stipulates that the Albanese government must continue to “support funding for local government-maintained roads and participate in a range of programs to provide fair funding increases to local government” to ensure the third tier of government has “a secure economic base” in the years ahead.

“Local government is increasingly reliant on untied grant programs such as the Financial Assistance Grants to ensure we can employ staff and carry out important community services such as run our libraries, pools and maintain our local roads to a safe standard,” Ms Scott told The Australian.

“We know that in some cases councils are almost universally reliant on Financial Assistance Grants to fund their operations and without them would be insolvent. This is particularly the case in remote areas with very small ratepayer communities.”

The amendment is problematic for Labor because it has the support of key figures in both Right and Left factions yet Albanese government ministers have not yet agreed to support it despite it being lodged for debate. There is also cross-factional support for a local government represen­tative to be made “a full member of national cabinet” and “relevant ministerial committees”.

Ms Scott has attended one meeting of the national cabinet as an observer in her capacity as president of the Australian Local Government Association.

The Albanese government has restored the Australian Council of Local Government and committed $100m for energy transition projects at a local level, $500m in Roads to Recovery funding and $750m to the Local Roads and Community Infrastructure Program. Treasurer Jim Chalmers has announced bringing forward the 2023-24 allocation of Financial Assistance Grants as a prepayment.

Mr Kelly and Ms Scott also argue that local government – made up of 537 councils and about 200,000 employees – needs to be elevated in the national policymaking process and given a bigger say in regional development policy.

“Without these increases to Financial Assistance Grants, councils will be faced with stark choices about which services to continue and which assets are allowed to fall into disrepair and, in a small number of cases, whether they can sustain their operations,” Ms Scott said.