RCA News | All About Our Regional Capital Cities

Budget delivers housing wins for regions but critical water and aviation shortfalls remain

13May 2026

BY RCA Admin POSTED IN Media Releases PERMALINK

Regional Capitals Australia (RCA) has tonight welcomed key investments to improve housing supply, community infrastructure and cost of living savings in this year’s Federal Budget.

RCA Chair and Mayor of Dubbo Regional Council, Cr Josh Black said the $500 million allocated to improve regional housing supply through the Local Infrastructure Fund was an important and practical recognition that regional housing supply depends on getting the basics right.

“This fund will aim to supply water, sewerage and power for new housing, and that will unlock new homes and allow regional capitals to grow,” Cr Black said.

Cr Black said it was also positive to see a number of cost-of-living measures announced in the Budget, including fuel excise relief, tax measures and broader household support that will assist regional families and businesses facing higher transport and living costs.

“Regional communities are often disproportionately impacted by rising fuel, freight and household costs, so it is positive to see practical measures aimed at easing some of that pressure,” Cr Black said.

RCA also welcomed continued investment in the Growing Regions program which aims to invest in community facilities that underpin liveability in regional capitals.

“These programs are important vehicles for delivering the infrastructure that makes regional capitals great places to live and work,” Cr Black said.

“We note that the allocation between the two programs is not yet clear, and regional capitals will be looking for a fair and transparent share of this investment.”

Cr Black however expressed concern that the Budget did not include investment in productivity stimulating infrastructure such as airport upgrades or large-scale water infrastructure.

“Regional airports are essential infrastructure. They connect communities to health care, education, emergency services, tourism and economic opportunity, yet due to the state of regional aviation many are struggling to sustain their operations,” Cr Black said.

“While the Budget includes significant investment in metropolitan rail projects, regional airports, which are lifelines for many communities, have been overlooked,” he said.

Water security also remains a major gap in this Budget,” Cr Black said.

“Without reliable water infrastructure, regional communities cannot grow, agriculture cannot thrive, and housing and industry development will be constrained,” he said.

RCA also noted the decision to consolidate Inland Rail at Parkes and return $4.4 billion in equity to the Budget.

“This is a disappointing signal for regional freight connectivity,” Cr Black said.

“Regional Australia needs long‑term investment in the infrastructure that moves goods, strengthens supply chains and supports national productivity,” he said.

Cr Black highlighted RCA will continue advocating to the Federal Government to ensure regional capitals receive the investment needed to support growth.

“Our cities are ready to deliver more housing, support major projects and strengthen national productivity but we need a continued focus on the enablers, infrastructure, aviation connectivity and water security,” he said.

Key initiatives announced that impact regional capitals include:

Regional Funding Programs

$750 m over four years for Thriving Suburbs, Growing Regions Program, specific allocations were not stated.

Roads and Rail

$845.9 million in 2026–27 under the Roads to Recovery Program, with $730.7 million directed to regional areas.
$157.4 million in 2026–27 under the Black Spot Program, with 50 per cent of funding directed to regional areas on average.

Cost of living measures

$2.9 billion to more than halve the fuel excise, equating to a 32 cent per litre reduction for petrol and diesel and slash the heavy vehicle road user charge to zero from 32.4 cents per litre for three months to 30 June 2026.
A new $250 annual tax offset will apply from the 2027–28 income year for income earned from work.

Skills and Training

$27.0 million over three years from 2026–27 (and an additional $3.0 million in 2029–30) to expand the TAFE Technology Fund and support mobile VET delivery in outer regional and remote locations.
$85.2 million over 4 years from 2026–27 for skills recognition initiative for migrations designed to fund faster and more flexible skills assessment.

Health

$1.8 billion over five years to fund Medicare Urgent Care Clinics. Once all clinics have been established by 30 June 2026, there will be 47 Medicare UCCs supporting communities in regional, rural and remote Australia, with 137 Urgent Care Clinics Australia wide.

Regional Housing

$500 million as part of a $2 billion Local Infrastructure Fund to be delivered via states and territories for local governments and state utilities including for roads, water, power and sewerage.

Financial Assistance Grants

$2.9 billion in Financial Assistance Grants brought forward from 2026–27 into 2025–26 year.

Inquiry must address regional communities locked out of water funding

07May 2026

BY RCA Admin POSTED IN Media Releases PERMALINK

Regional Capitals Australia (RCA) has welcomed a new Productivity Commission inquiry examining National Water Reform, to shine a spotlight on the funding gap facing regional capitals.

RCA says the inquiry creates an important opportunity identify how the nation is leaving many regional communities to bear the brunt of pressure on water resources from population growth, ageing infrastructure and climate volatility without direct access to the support they need.

RCA Chair Cr Josh Black said regional communities were being asked to drive national priorities such security across food, energy and defence as well as a growing population, yet were locked out of the funding pathways needed to secure the water that underpins these priorities

“We are particularly concerned that our communities will be left with critical water shortages due to the growing demand on our current supply if this issue is not addressed,” Cr Black said.

“A disconnect between accessing funding and delivering the water our communities and nation need to thrive is becoming a significant barrier to regional growth and national productivity in a time when we need it most.

“We don’t have a shortage of water projects in regional Australia, we have a system that locks out regional leaders ability to put forward their projects forward for funding,” he said.

RCA’s 2026–27 Pre-Budget Submission highlights the scale of the challenge:

44% of regional capital cities are already experiencing significant water shortages annually;
77% of councils say water infrastructure upgrades are their top priority; and
More than half of Australia’s water demand is driven by agriculture and primary industries.

At the same time, demand is accelerating across multiple fronts:

Population growth in regional areas continues to increase pressure on local water systems;
PFAS problems are continuing to threaten water security without the appropriate research and development into treatment options;
Renewable Energy Zones and major infrastructure projects are increasing industrial water demand; and
Agriculture remains highly water-dependent and critical to food security objectives.

Many regional communities are also operating with single-source water systems and ageing infrastructure, leaving them exposed to drought, climate shocks and system failure.

Cr Black said the consequences are already being felt.

“We are seeing housing projects delayed, industry expansion constrained and communities asking a very simple question: where will our future water come from?” he said.

“You cannot deliver housing, grow regional economies or support renewable energy zones without securing water supply first.”

RCA is calling on the Federal Government to address this structural gap by:

Allowing direct local government access funding associated with to the National Water Grid Investment Framework
Establishing a transparent process to identify and prioritise regional water projects
Recognising water as critical enabling infrastructure for housing, industry and energy transition.

“If we don’t fix this now, water will become another binding constraint on Australia’s growth.”

New report reveals regional airports running at a loss while delivering critical national services

18Mar 2026

BY RCA Admin POSTED IN Media Releases, RCA News PERMALINK

New report reveals regional airports running at a loss while delivering critical national services

A new national report has revealed many regional airports across Australia are operating at a financial loss, with local councils increasingly forced to subsidise infrastructure that regional communities rely on every day.

The Regional Airports Financial Sustainability Survey, commissioned by Regional Capitals Australia (RCA) and the Australian Airports Association and prepared by ACIL Allen, provides the most comprehensive snapshot to date of the financial pressures facing regional airports.

The survey of regional airports found more than half are operating at a loss, with a median annual deficit of $192,000.

RCA Chair and Mayor of Dubbo Regional Council, Cr Josh Black, said the findings highlight the growing burden being placed on regional councils and communities to keep essential aviation infrastructure operating.

“Regional airports are vital infrastructure supporting the liveability, economic development and resilience of communities across Australia,” Cr Black said.

“Yet their financial sustainability is dependent on local councils and local ratepayers.”

“This report highlights the vital role regional airports play in supporting health, emergency and national security services beyond passenger travel, Cr Black said.

Additional findings from the report include:

$50 million was invested in airport capital works across in the 2024-25 FY however almost 60% of airports surveyed reported they had deferred critical infrastructure upgrades due to funding constraints;
9 out of 10 airports support critical health operations such as the Royal Flying Doctor Service; and
Important services delivered by State and Federal Governments were serviced from participating airports:

– 83% support emergency services activities;

– 71% support disaster response operations;

– 61% support search and rescue missions;

– 44% support defence-related activities.

“The lack of funding to invest to maintain and upgrade airports is really challenging, we have seen examples of airstrips failing over the past 12 months, leaving communities stranded without services,” Cr Black said.

“These airports are far more than passenger terminals, they are critical infrastructure that support health care, disaster response and defence,” Cr Black said.

The report will form part of Regional Capitals Australia’s engagement with the Productivity Commission’s inquiry into the current state of regional aviation and the drivers of regional airfares.

While the report focuses on airport sustainability rather than airfare pricing, it highlights the broader pressures facing regional aviation.

On some regional routes, passengers are paying on average 52 per cent more per kilometer than those traveling on metropolitan routes,” Cr Black said.

“This means regional communities are being hit twice, once through their hip pocket with higher airfares, and again through their rates helping fund the national infrastructure that supports health services, disaster response, defence operations and vital regional connectivity,” Cr Black said.

“This is something people living in metropolitan areas do not have to fork out for and it highlights the growing inequality in our aviation network,” Cr Black concluded.

Regional Capitals Australia will use the report’s findings to support recommendations to the Productivity Commission and the Australian Government, including:

recognise regional airports as critical national infrastructure and invest accordingly;
establish recurrent federal funding for capital costs of regional airports; and
resolve inequitable aviation security requirements that impose disproportionate costs on smaller regional airports.

RCA and AAA: 2026 co-pilots in the fight for fairer regional skies

06Feb 2026

BY RCA Admin POSTED IN Media Releases PERMALINK

Regional Capitals Australia (RCA) and the Australian Airports Association (AAA) have signed a Memorandum of Understanding (MOU) that sets out an agreement to work together to advocate for fairer airfares, stronger connectivity and more sustainable airports across regional Australia.

With a Productivity Commission inquiry and a Senate inquiry both examining the future of regional aviation, 2026 is poised to be a pivotal year for regional air services.

RCA Chair and Mayor of Dubbo Regional Council, Cr Josh Black, said the focus of these inquiries provided a once-in-a-decade opportunity to put regional communities front and centre in a national conversation about more equitable aviation.

“Regional airports are the lifeblood of regional communities – critical to health, education, tourism, trade and disaster response and resilience,” Cr Black said.

“Yet the financial viability of regional airports is constantly under threat, with sustainability often propped up by local government rates rather than state of federal funding sources,”

“Regional communities are paying not only higher average airfares but also for the costs of keeping airports open through their local rates,”

“Decisions made this year will likely shape the next decade, determining whether regional air services become more reliable, more equitable and more future-ready – or whether the current fragile state continues.” Cr Black said.

AAA Chief Executive Officer, Simon Westaway said the MOU formalises a shared commitment to evidence-based advocacy at a critical moment for regional aviation.

“Regional airports are critical national infrastructure, but many are operating under intense financial pressure,” Mr Westaway said.

“This MOU recognises that airports and the communities they serve are facing the same structural challenges – including high regulatory costs, ageing infrastructure and limited access to sustainable funding.

“By working closely with Regional Capitals Australia, we can bring together airport-level evidence and regional community impacts to make a stronger, more credible case to government at a time when major policy decisions are being made.”

The MOU builds on a jointly commissioned Regional Airports Survey, led by the Australian Airports Association in partnership with Regional Capitals Australia, which will be distributed to participating regional airports this week.

Mr Westaway said the federal inquiries provide a rare opportunity to take a system-wide view of regional aviation.

“If we want affordable, reliable air services for regional Australia, we need to ensure airports are financially viable and appropriately supported to deliver the services communities rely on,” he said.

The MOU will see RCA work with AAA on opportunities to identify and progress shared research, policy and advocacy priorities.

“This year’s federal inquiries will be critical to deeply understanding not only these factors, but the enabling role airports and fair fares play in terms of liveability, service delivery, jobs and skills and resilience of our regions,” Cr Black said.

“We need a strong voice to ensure the viability of regional aviation so that the millions of Australians living beyond the state capitals, both today and those in the future, have equitable access to air travel and the liveability it enables,” Cr Black concluded.

RCA and the AAA will continue to highlight to government the need to:

take further action to secure the ongoing viability of regional aviation routes;
establish recurrent federal funding for both capital and operational security costs of regional airports; and
resolve inequitable security requirements that impose city-level costs on low-risk regional airports.

From the Chair – Christmas 2025

18Dec 2025

BY RCA Admin POSTED IN RCA News PERMALINK

As we bring 2025 to a close, it is clear that this has been a year of momentum and impact for Regional Capitals Australia (RCA). It has been a year in which regional capitals have not only been heard in Canberra, but increasingly recognised as essential to Australia’s economic resilience, productivity and national liveability. Key achievements in 2025 include:

Securing a stronger national profile for regional capitals during the lead-up to the federal election;
Embedding regional capitals in major Commonwealth policy the rollout of the Aviation White Paper and the National Housing Agenda;
Translating advocacy into real funding outcomes, with new and continuing programs supporting:
- housing-enabling infrastructure through the Housing and Support Program;
- safer, more reliable regional aviation via the Regional Airports Program; and
- continued investment through Roads to Recovery, Black Spot, and Safer Local Roads and Infrastructure;
Influencing broader policy debates through submissions and engagement on:
- regional aviation and fair airfares;
- migration settings and workforce supply;
- water security and infrastructure planning; and
- national cultural policy, including digital inclusion and emerging technologies such as AI.

These outcomes were underpinned by sustained, face-to-face engagement in Canberra. Throughout the year, RCA board members and delegates met directly with ministers, shadow ministers, parliamentarians, senior officials and stakeholders, reinforcing a consistent message: strong regional capitals are essential to strong regions, and long-term investment in our member cities is critical to Australia’s future.

Looking ahead, significant challenges remain. Housing availability, water security, community infrastructure and regional aviation will continue to shape the outlook for regional capitals and require coordinated, long-term solutions.

In 2026, RCA will focus on:

securing long-term funding certainty for regional capitals;
advocating for fairer, more effective national policy settings;
deepening recognition of regional capitals in federal decision-making; and
engaging early in the 2026–27 Budget process to ensure investment matches the scale and importance of our cities.

As we approach the holiday season, I would like to thank all member councils, board members and partners for their continued commitment and collaboration throughout the year. On behalf of the Board, I wish you, your teams and your communities a safe, restful and festive holiday period.

Kind regards

Cr Josh Black

Chair, Regional Capitals Australia

New leadership team elected

18Dec 2025

BY RCA Admin POSTED IN RCA News PERMALINK

A new Chair and Deputy Chair have been elected to lead RCA for the next year.

At last month’s Annual General Meeting (AGM), Dubbo Regional Council Mayor, Cr Josh Black, was elected Chair, while Cr Chris Cherry, Mayor of Tweed Shire Council, will serve as Deputy Chair.

“It is a privilege to be chair of an alliance that has a 14-year history of making the case for the investment our member cities need to continue to grow,” Cr Black said.

“RCA is the only national voice in Canberra that reflects the ambitions of regional cities to be the liveable, productive and affordable alternative to the major capital cities,” he said.

Eight other board positions were decided at the AGM. They were:

Secretary: Cr Doug Curran, Mayor, Griffith City Council;
Treasurer and South Australian Regional Representative: Mayor Diana Mislov, City of Port Lincoln;
New South Wales Regional Representative: Cr Jim Hickey, Deputy Mayor, Broken Hill City Council;
Victorian Regional Representative: Cr Michael Gobel, Mayor, City of Wodonga;
Western Australian Regional Representative: Mayor Jerry Clune, City of Greater Geraldton;
Northern Territory Regional Representative: Mayor Athina Pascoe-Bell, City of Palmerston; and
Queensland Regional Representative: Cr George Seymour, Mayor, Fraser Coast Regional Council.

The new board confirmed RCA’s priorities for the coming year. These priorities are:

Housing enabling infrastructure and a housing innovation fund to help our member cities to address the housing crisis in regional Australia;
Topping up the regional airports program and resolving airport security arrangements to ensure our regions are connected with fair fares; and
Better planning and access to funding for water infrastructure to support industry and population growth.

Cr Black thanked both Town of Port Hedland Mayor Peter Carter, who resigned from council in August, and Albury City Council Mayor Cr Kevin Mack, who had been acting Chair until the AGM.

Air travel takes flight as Canberra investigates the future of regional aviation

18Dec 2025

BY RCA Admin POSTED IN RCA News PERMALINK

Regional Capitals Australia (RCA) has welcomed important developments and inquiries this year that bring greater certainty and advocacy focus to the future of regional aviation – an essential service for regional capitals and the communities they serve.

In November, creditors supported Air T’s bid to acquire Regional Express (Rex), with the sale of the airline expected to be finalised this month. RCA has consistently supported the Federal Government’s actions to sustain Rex since the airline entered voluntary administration in July last year, recognising Rex’s vital role in connecting regional communities.

Government interventions, including loans and a regional flight booking guarantee, have helped provide stability and confidence for travellers during a period of uncertainty.

RCA has also welcomed the release of the terms of reference for two significant inquiries into the future of regional aviation:

• a Productivity Commission inquiry into the key drivers of regional airfares, and
• a Senate Rural and Regional Affairs and Transport References Committee inquiry into the state of Australia’s aviation sector and its ability to deliver reliable and affordable services to rural, regional and remote communities.

The Senate inquiry will investigate the issues that shape regional aviation, including costs, fees, levies, taxes and charges, disparities in costs including security, and the adequacy and effectiveness of government processes.

The Productivity Commission will investigate the determinants and drivers of regional airfares and services while also examining policies, regulation and the role of government. It will also examine the role of aviation in productivity for the nation.

RCA will continue to make the case that ‘fair fare’ aviation is critical to the success of our members and their broader communities. We have also made the case that airports are critical to health, education, tourism, trade and disaster response in regional areas. We will continue to call for broader recognition of these assets through:

Increase funding for the Regional Airports Program to $200 million over four years;
Resolve funding support and or the requirement for security screening at regional airports; and
Keeping regional airfares fair.

Key dates and engagement opportunities:

Initial submissions to the Productivity Commission are due by 15 March 2026.
Senate inquiry submissions are also being accepted until 30 January 2026 with reporting to occur in mid-2026.

End of Year Delegations overview

18Dec 2025

BY RCA Admin POSTED IN RCA News PERMALINK

Regional Capitals Australia board members headed to Canberra for face-to-face meetings with key government and shadow ministers, ministerial offices and departmental officials.

Our delegation to Parliament House in October met with:

The Hon Sussan Ley MP, Leader of the Opposition;
Mr Luke Gosling MP, Special Envoy for Defence, Veterans Affairs and Northern Australia;
Mr Ben Small MP, Deputy Chair of the Standing Committee on Procedure;
Mr Jaime Chaffey MP, Deputy Chair of the Standing Committee on Primary Industries;
Office of the Hon Clare O’Neil MP, Minister for Housing, for Homelessness and for Cities.
Office of the Hon Emma McBride MP, Assistant Minister for Rural and Regional Health;
Australian Energy Infrastructure Commissioner Mr Tony Maher; and
the Australian Airports Association.

In September, our delegation met with

The Hon Matt Thistlethwaite MP, Assistant Minister for Immigration and for Foreign Affairs and Trade;
Senator the Hon Bridget McKenzie, Shadow Minister for Infrastructure, Transport and Regional Development;
Office of the Hon Kristy McBain, Minister for Regional Development, Local Government and Territories, and for Emergency Management;
Office of the Hon Clare O’Neil MP, Minister for Housing, for Homelessness and for Cities; and
Office of the Senator the Hon Murray Watt, Minister for Environment and Water.

We provided a briefing on our policy and funding priorities as well as the key issues facing Regional Capitals, including

housing supply and the need for government investment in housing enabling infrastructure and construction skills;
immigration and population, including adjusting regional visas to enable regional skills gaps to be filled; and
ongoing Federal Government investment in regional development and infrastructure.

Our board will continue to meet with Federal Government decision makers as the budgetary process gets underway ahead of the 2026-27 Budget.

National Cultural Policy submission

18Dec 2025

BY RCA Admin POSTED IN RCA News PERMALINK

RCA has made a submission to the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport Inquiry into National Cultural Policy – Revive.

Revive is a five-year plan to renew and revive Australia’s arts, entertainment and cultural sector.

In July this year, the Senate agreed that the National Cultural Policy inquiry be re-adopted in the 48th Parliament for inquiry and report.

The committee was particularly interested in views on:

potential tax reform and ways to boost the productivity of Australia’s arts and creative sectors; and
opportunities, risks and challenges for Australia’s arts and creative sectors associated with emerging technologies such as artificial intelligence.

In its submission, RCA stated regional capitals were recognised as some of the most liveable communities in Australia, offering cultural experiences deeply connected to place.

Artificial intelligence and emerging technologies are reshaping the cultural landscape at a time when regional councils already shoulder a disproportionate share of cultural funding. Without intervention, these inequities will deepen, leaving regional communities behind.

RCA recommended a national cultural policy response be built around 10 priorities, including:

legislate copyright and IP reform;
develop and enforce ethical AI standards;
fund training programs and establish regional AI and culture hubs;
expand digital inclusion programs; and
prioritise investment in digital connectivity.

We will advocate for these priorities to become part of government policy when we meet with our Federal Government partners, including the Minister for the Arts, the Hon Tony Burke and Shadow Minister for the Arts, Julian Leeser.

The full submission is available to read here.

A warm welcome to Wodonga

18Dec 2025

BY RCA Admin POSTED IN RCA News PERMALINK

Regional Capitals Australia (RCA) has welcomed a new member since our last newsletter.

The addition of Wodonga Council brings the number of RCA member cities to 21.

We were pleased to have Wodonga Council’s Mayor Cr Michael Gobel as part of our delegation to Canberra in October and to have him elected in November to the RCA board as the Victorian representative.

Wodonga sits on the Victorian side of the Murray River in Victoria’s north east, straddling the Hume Highway. It sits alongside Albury in New South Wales, with the two cities forming a long-standing cross-border partnership that strengthens economic, workforce and investment outcomes for the broader region.

The city is a key area of regional growth for the state, offering strong opportunities across investment, logistics, housing and advanced manufacturing. It is supported by major assets, including industrial precinct Logic, Charles Sturt University and Wodonga TAFE.

Wodonga covers around 433 square kilometres and, according to the Australian Bureau of Statistics, its estimated population in 2024 was 44,824.

It is a growing city with hills, rich agricultural valleys, parklands and gardens, bike and walking paths and a diverse hospitality, education and employment sector.

The council’s vision is for a vibrant, well-planned city where people, nature and opportunity thrive through connection, resilience and leadership. The council has an operating budget of more than $50 million and employs more than 230 full-time equivalent staff.

We are working with Wodonga, as we are with all members, as we set our policy agenda and shape our strategy for advocacy to the Federal Government. This includes incorporating Wodonga’s advocacy priorities in RCA’s pre-budget submission for 2026-27.

The experiences and perspectives of Wodonga and its communities will be valuable as we continue to work with decision makers to increase understanding of and support for our policy priorities.

Earlier this year, we were also pleased to welcome Tweed Shire Council as a new RCA member.

Photo caption: Wodonga Council Mayor Cr Michael Gobel (above right) was pictured in October at Parliament House with acting RCA Chair Cr Kevin Mack from Albury City Council and NT board representative Mayor Athina Pascoe-Bell from the City of Palmerston.

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