Byron Shire Council is urging the federal government to take meaningful action on Federal Assistance Grants (FAGs), advocating for an increase from the current 0.5 per cent of tax revenue to one per cent.
Greens Mayor, Sarah Ndiaye, says the call ‘comes at a critical time, as local communities across the country are grappling not only with the ongoing housing crisis but also the fallout from it.
‘Local governments are facing increasing pressures to provide more services, while managing growing infrastructure demands.’
She says the proportion of national taxes allocated to local government has shrunk over time, according to an SGS report (2024) into long-term trends in Australian local government financial sustainability.
‘It’s a disgrace that successive Australian governments have allowed the Federal Assistance Grants – the only untied source of annual funding for local governments – to flatline at such an embarrassingly low level for so long, while per capita expenditure from both state and Commonwealth governments has soared,’ she said.
‘Local governments are now expected to manage more services than ever before, from roads and rubbish to libraries, parks, childcare, and even airports, cemeteries, and some health services.
Last resort for the most vulnerable
‘We are the safety net for our communities and the services of last resort for the most vulnerable,’ Mayor Ndiaye said.
She added in addition to these existing challenges, there are extra burdens such as the impact of climate change.
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