Moorabool council is calling for major reform to the way local governments are funded, warning fast-growing councils are being pushed towards breaking point by rising costs, ageing infrastructure, and limited revenue options.
Council resolved to lodge a detailed submission to the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport as part of a new federal inquiry into local government funding and financial sustainability.
The submission argues that sustainably funded councils are well-placed to deliver local solutions to national priorities, but only if there is a significant increase in untied, non-competitive federal funding.
Central to the submission is a call to reinstate financial assistance grants to the level at which grants were originally set when they were introduced in the 1970s, at 1 per cent of Commonwealth taxation revenue.
According to council, the value of these grants has steadily declined over decades, falling to just 0.5 per cent of Commonwealth tax revenue in 2024-25.
For almost a quarter of councils nationally, federal grants now make up at least 20 per cent of annual operating revenue.
The submission also seeks reform of the grants distribution formula, arguing the current system favours well-resourced metropolitan interface councils while peri-urban and small councils face a growing financial crisis.
Moorabool’s situation is compounded by rapid population growth, with the shire forecast to grow by 94 per cent, council says the growth is placing enormous strain on roads, community facilities and essential services, while rate capping and limited access to growth funding restrict its ability to respond.
Among other recommendations, council is calling for permanent housing and infrastructure support programs, new federal growth funds for fast-growing peri-urban councils, equitable distribution of Commonwealth infrastructure funding, and disaster recovery arrangements which allow for “betterment”.
Copies of the submission will be sent to key government and opposition figures, including the prime minister, relevant ministers and committee members.
Council says the submission aligns with its obligations to ensure long-term financial sustainability, warning without meaningful federal intervention, pressures on local services and infrastructure will only intensify.
