Inquiry into the funding and financial sustainability of local governments in Australia
Rates, roads and rubbish. That’s what comes to mind for many people when asked what their local council does.
Federal Member for Macquarie, Susan Templeman MP, says councils take care of much more than that, delivering vital community services and infrastructure.
“Whether it’s leading the local recovery after a natural disaster as Hawkesbury and Blue Mountains Councils have had to do or running more than 50 childcare and early education services as Penrith Council does, their roles are expansive and important,” Ms Templeman says.
Ms Templeman has welcomed the announcement that the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport has launched a new inquiry into the funding and financial sustainability of local governments in Australia.
“Councils are funded using a combination of rates, state government, and federal government funding, but with Councils often publicly saying they can’t afford to do the things their community would like them to, you’ve got to ask if the existing funding mechanisms are addressing the evolving responsibilities.
“This is one of the questions the new inquiry will consider,” Ms Templeman says.
Chair of the Committee, Fiona Phillips MP, said the Committee wants to gain a deeper understanding of the financial relationship between local government and other levels of government in Australia, with a particular emphasis on funding mechanisms and fiscal sustainability.
This inquiry builds on work that was underway in the last term of Parliament, in which the Committee heard from more than 280 stakeholders through written submissions, and held 16 public hearings. That evidence will be considered as part of this new Inquiry.
“Given some of the rate rises being put forward by councils, I think residents will welcome the inquiry’s aim of identifying all sources of government funding received by local governments, to better understand how funding arrangements affect local government’s ability to deliver services and invest in local infrastructure.
“After the 2022 election, I delivered more than $20 million in dedicated road funding for Hawkesbury and Blue Mountains Councils, above and beyond regular funding programs.
“I’ve also delivered millions more in parks funding, pathways, and upgrades of other Council-owned community assets,” says Ms Templeman.
“So I’m pleased that the Inquiry will examine not just where the money comes from, but also the impact and effectiveness of that funding.”
“I hope residents across the Hawkesbury, Nepean and Blue Mountains regions will jump in and have their say, and it will be an opportunity for Councils across the country to share their thoughts about how to improve things.”
Submissions are open until 3 February 2026.
Further information on the inquiry, including the terms of reference and how to contribute, is available on the Committee’s website.
ENDS
