Glen Innes Severn Council is supporting the “Invest in Us” campaign, a statewide call for the Federal Government to restore fair and sustainable funding for Local Government in regional NSW.
Led by the Country Mayors Association of NSW, the campaign seeks to return Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue.
Following the recent Federal Budget, this has fallen to 0.49 per cent, less than half the original level.
Mayor Margot Davis said the campaign highlights growing inequity between metropolitan and regional communities.
“Regional councils maintain extensive infrastructure and deliver essential services across large areas with smaller populations and limited revenue bases. Yet Commonwealth funding has declined over decades, while service expectations remain the same,” Councillor Davis said.
She said councils are increasingly forced to manage rising costs, cost shifting and reduced real funding.
“Unlike State and Federal Governments, councils cannot operate in deficit. When funding does not keep pace, the pressure falls back on local communities.”
Cr Davis said this structural funding gap has contributed to councils implementing Special Rate Variations (SRVs) to remain financially sustainable.
“In Glen Innes Severn, a cumulative SRV of 48.3 per cent over three years has been approved as part of restoring long-term sustainability. No council wants to increase rates, and we understand the impact this has on residents, farmers and businesses,” she said.
“However, these decisions are often driven by decades of underfunding across Local Government. The sector has consistently advocated for restoring grants to one per cent, including direct correspondence with the Prime Minister.”
“Restoring funding would be a relatively small adjustment in the Federal Budget but would significantly improve councils’ ability to maintain infrastructure, reduce pressure on ratepayers and strengthen long-term sustainability,” she said.
Cr Davis said the funding gap also affects community confidence. “Councils are often seen as the source of rate increases, but many underlying causes sit outside local control. Fairer funding would reduce that pressure and support better outcomes for communities.”
Council will continue advocating alongside sector partners for a funding system that reflects the realities facing regional communities and supports long-term sustainability.
Media Release: Glen Innes Severn Council
