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Nation’s Local Governments Demand Fairer Funding: Restore Financial Assistance Grants to 1%

by | Jun 26, 2026 | Finance, Local Government, Media Release

Glen Innes Severn Council has joined councils from across Australia in backing an urgent national call to restore Financial Assistance Grants to 1 per cent of Commonwealth taxation revenue, as delegates at the National General Assembly of Local Government overwhelmingly supported an emergency motion for an immediate increase in untied federal funding.

The motion was endorsed by Australia’s 538 councils and reinforced by a joint letter to Federal Parliament seeking a $3.5 billion increase to help address the growing financial pressure facing local government.

Mayor Margot Davis, Councillor Max Elphick and General Manager Bernard Smith are attending the Assembly in Canberra on behalf of Glen Innes Severn Council, joining a united national push for fairer funding for local communities.

Financial Assistance Grants have fallen from around 1 per cent of Commonwealth taxation revenue in the mid-1990s to approximately 0.5 per cent today, despite councils taking on increasing responsibilities and facing significant cost pressures.

Cr Davis said the message from councils across Australia was clear and united.

“Standing alongside mayors from every corner of Australia, I heard the same message repeated again and again – enough is enough,” she said.
“We are tired of constantly advocating for fairer funding while being asked to do more with less. Local government is now united in demanding the restoration of Financial Assistance Grants to 1 per cent of Commonwealth taxation revenue. This is not about politics; it is about ensuring our communities have the roads, infrastructure, services and facilities they rely on every day.”

“A direct consequence of the Federal Government’s position is reduced services, poorer infrastructure and local economies not reaching their potential and the government is responsible,” Cr Davis said.

“Government conveniently is staring down local councils and choosing to turn a blind eye to the dire consequences of their actions. Real people and real communities are suffering.”

The joint letter to Parliament warns that the decline in untied federal funding is placing increasing pressure on councils, particularly in rural, regional and remote communities where local government often provides services and infrastructure that are critical to community wellbeing and economic development.

The emergency motion adopted by the Assembly reflects growing concern that local government funding has not kept pace with rising costs, increasing community expectations and expanding responsibilities.

In addition to supporting the national funding campaign, Glen Innes Severn Council has used the National General Assembly to advocate on housing and enabling infrastructure, workforce and skills challenges, regional health outcomes and community safety initiatives.

Council will continue working with local government representatives from across Australia to advocate for stronger partnerships and sustainable funding arrangements that support the long-term prosperity of regional communities.

Media Release: Glen Innes Severn Council

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