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August 18, 2026

PM’s funding increase a big win for local councils

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Local Government NSW President, Mayor Darcy Byrne

LGNSW President Mayor Darcy Byrne has warmly welcomed the Albanese government’s announcement on the weekend to restore adequate funding to councils across Australia to address the financial crisis in local government.

The new Local Government Federation Compact includes a commitment to annually increase the level of financial assistance grants to councils across Australia.

‘This is an important breakthrough for councils and communities across NSW and indeed across the nation,’ Mayor Byrne said. ‘Australians rely on councils every day to deliver the grassroots services and infrastructure that keep local communities running.’

Crisis point

‘For too long, the lack of secure and untied funding has prevented councils from making the investments needed in local infrastructure and services,’ Mayor Byrne continued.

‘This has reached a crisis point. The pressure is particularly acute in rural, regional and remote communities where the most isolated councils face the biggest financial challenges.

‘At the same time, our fast-growing urban councils are under increasing strain as they work to meet the needs of expanding populations. The crisis in local government funding is real and this new national agreement is exactly what’s needed to secure basic, local services in municipalities across the country.’

Mayor Byrne said the government’s new commitment would provide councils with the funding they needed to meet local priorities and deliver necessary basic services across Australia.

Prime Minister Anthony Albanese. FB

Compact

Along with the increase in financial assistance, the five year Local Government Federation Compact announced on the weekend will:

  • Ensure Roads to Recovery funding can be used to purchase plant and equipment to enable councils to carry out their own road maintenance with their own trained workers, to the extent possible;
  • Support and increase the availability of apprenticeships in local government, as well as other employment programs in a local government context;
  • Deliver new capabilities to improve outcomes in housing, planning, emergency management and aged care; and
  • Ensure the federal government publishes an annual summary of funding for local government.

Mayor Byrne said LGNSW looked forward to working constructively with the federal government and with the unions representing the local government workforce, along with the other national, state and territory local government associations to develop and implement the Federation Compact.

‘By bringing all levels of government and unions representing local government workers together we are set to build a new and brighter future for local councils and local services in Australia.

‘Councils stand ready to work with the government to ensure this commitment delivers the financial certainty local communities need,’ he said.



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