It will collaborate with other regional councils to advocate for Financial Assistance Grants to be increased to a minimum allocation of one per cent of Commonwealth taxation revenue.
These grants have been reduced from one per cent in 1996 to just 0.05 per cent today.
If successful, Murray River Council’s allocation could increase to more than $20 million.
In Edward River, the allocation could rise to more than $14 million.
The move comes as councils across Australia face mounting financial pressures.
A recent submission by the Australian Local Government Association (ALGA) to the Inquiry into Local Government Sustainability highlighted the critical need for adequate and secure funding to ensure councils can effectively plan and deliver essential services.
The ALGA submission underscored the limited revenue options available to local governments and their heavy reliance on Commonwealth Financial Assistance Grants (FAGs).
Murray River Mayor John Harvie said in the same period FAGs have decreased, NSW councils have also contended with ‘rate pegging’ and significant cost shifting from both state and federal governments, leaving many rural and regional councils struggling to remain financially sustainable.
"Advocacy for restoring local government funding to the 1996 level of one per cent of Commonwealth taxation revenue has been ongoing for years, yet progress has been slow,“ Cr Harvie said.
“With a federal election looming, there has never been a better time for councils and representative bodies to amplify their voices.
“The current funding model is unsustainable, and the consequences are being felt by ratepayers and communities everywhere."
The FAGs program consists of two components:
• a general purpose component which is distributed between the states and territories according to population (i.e. on a per capita basis); and,
• an identified local road component which is distributed between the states and territories according to fixed historical shares.
Both components of the grant are united in the hands of local government, allowing councils to spend the grants according to local priorities.
In the 2024-2025 financial year, Murray River Council was allocated a grand total of just over $11.1 million from the grants program.
Edward River Council’s grand total was just more than $7.4 million.
Murray River Council also reiterated the importance of constitutional recognition of local government as a formal tier of government, strengthening its role and securing its funding future.
With the support of Murray River councillors, Cr Harvie and acting council CEO Sarah Ryan will now actively lobby other councils to join this critical campaign, to ensure “local governments receive a fair share of Commonwealth revenue”.
“Local councils are the backbone of their communities.
“It’s time for real action to ensure they can continue delivering vital services and infrastructure for future generations,” Cr Harvie said.
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