Inverell Shire Council has welcomed the Federal Government’s announcement of a Federation Compact with Local Government, recognising the significant financial sustainability challenges facing councils and committing to meaningful, ongoing increases in Financial Assistance Grants.
At its Ordinary Meeting on 26 August 2026, Council resolved to write to the Prime Minister and Federal Local Government Minister Catherine King, welcoming the commitment and urging the Federal Government to work with the local government sector to urgently progress the Compact.
The Federation Compact includes commitments to increase Financial Assistance Grants over time, provide greater flexibility in Roads to Recovery funding, support apprenticeships and local government employment programs, improve capabilities in housing, planning, emergency management and aged care, and publish an annual summary of Local Government funding.
Mayor of Inverell Shire, Cr Kate Dight, said the announcement was an important step toward addressing the long-term funding pressures experienced by councils across NSW, particularly in rural and regional communities.
“For regional councils like Inverell Shire, financial sustainability is a very real challenge. Our communities expect and deserve safe roads, reliable services and well-maintained public assets, but the cost of delivering those services continues to rise. Council welcomes the Federal Government’s recognition of these pressures and encourages continued collaboration with the local government sector to ensure the Compact delivers practical, long-term support.”
Council noted that any increase in Financial Assistance Grants should be delivered in real terms and should not be offset by reductions in other important funding programs such as Roads to Recovery or disaster recovery arrangements.
Council will continue to support coordinated advocacy through Local Government NSW and the broader local government sector to secure sustainable funding outcomes that benefit all councils and communities.
Media Release: Inverell Shire Council
