Federal Budget fails to deliver fairer funding

31 Mar 2025 |
31 March 2025

Southern Downs Regional Council is joining councils across Queensland in calling on all Federal election candidates and parties to commit to a fairer funding model for local government as communities continue to feel cost-of-living pressures.

While last week’s Federal Budget committed $1.2 billion in Cyclone Alfred support, Southern Downs Mayor Melissa Hamilton said failing to restore Financial Assistance Grants to their previous level of 1 per cent of tax revenue remains a serious concern for local government sustainability.

“Our region, like so many across Queensland, is facing increasing costs in delivering services and infrastructure,” Mayor Hamilton said.

“Councils can't sustain essential services without fair federal funding.

“The Federal Budget is forcing councils towards rate hikes or service cuts, neither of which are reasonable during a cost-of-living crisis when ratepayers are already feeling the pressure.

“Councils have long been advocating for an increase in Financial Assistance Grants yet this budget has not delivered on the Federal Government’s commitment to a fairer funding model.”

Financial Assistance Grants provide untied funding that councils rely on to invest in essential community services and infrastructure. Despite previous Federal Government commitments to increase support, these grants remain stagnant at just 0.51 per cent of tax revenue which is well below the one per cent required to ensure liveability and affordability for ratepayers.

Mayor Hamilton also echoed calls from the Local Government Association of Queensland (LGAQ) for the Federal Government, Opposition, MPs and candidates to prioritise local communities and commit to a funding model that reflects today’s economic realities.

“Fair funding for local government is about a tiny percentage of taxpayer dollars coming back to their own communities, so councils can continue delivering essential services,” she added.

“This election is an opportunity for all parties to step up and provide the support that Queensland councils and ratepayers need.”

The LGAQ has outlined a range of measures that would enhance community liveability, strengthen local economies and create jobs, including:
• A fairer funding deal for councils
• Increased investment in First Nations housing
• Action on insurance affordability
• Support for energy transition
• Enhanced disaster management funding
• Closing the digital divide
• Stronger environmental protections

For more information on the campaign for fairer funding, visit www.dontleaveusinthe70s.com.au.

Last edited date 31 Mar 2025