Regional Capitals Australia (RCA) has warned large pockets of inequity will grow between metropolitan centres and the regions if regional municipalities do not receive funding to provide much-needed community infrastructure and services.
RCA Chair Mayor Peter Carter said regional capitals were the heart of regional Australia, serving as hubs for commerce, education, transport and healthcare.
“As regional hubs, our municipalities provide services to nine million Australians, many of whom travel from other council areas to access services not available at home,” Mayor Carter said.
“Regional Capitals also must also operate and maintain airports, water utilities and large road networks and regional-level arts, culture, sporting and community centres. Metropolitan municipalities don’t need to budget for these costs – Regional Capitals must,” Mayor Carter said.
“Rate pegging in New South Wales and rate caps in Victoria are having a crippling impact, eroding the financial position of councils across these states. Costs are rising, but revenue raised through rates is just not keeping pace,” Mayor Carter said.
“Our regional capitals are liveable, affordable, attractive alternatives to big city living and are growing rapidly, putting additional stress on services and infrastructure. So while our population is increasing, our share of government investment is not,” Mayor Carter said.
“To help address this imbalance between the city and the regions, RCA is asking for an on-going Federal Government grant program to fund regional community infrastructure projects,” Mayor Carter said.
“The Local Roads and Community Infrastructure Program was an important source of funding for regional Australia, providing more than $3.25 billion for better roads and community infrastructure such as parks, recreation centres and libraries,” Mayor Carter said.
“That program was due to end in June 2025, so there is an urgent need to ensure continued investment in regional community infrastructure to support growing populations, build liveable cities and foster social cohesion,” Mayor Carter said.
A federal parliamentary committee examining local government sustainability presented its interim report in February. This report acknowledged how the role of local government had ‘evolved significantly’ but did not contain formal policy recommendations.
Mayor Carter said RCA would seek meetings with government ministers, including the Minister for Regional Development, Local Government and Territories Kristy McBain, to advocate for change.
“Now that parliament has resumed after the federal election, we will head to Canberra to discuss how the Federal Government can better support our Regional Capitals,” Mayor Carter said.
“We will be making the case for extending programs such as the Local Roads and Community Infrastructure Fund, in lieu of action from the Federal Government on Financial Assistance Grants,”
“The calls for Financial Assistance Grants, which comprise a fifth annual operating revenue for around a quarter of all regional councils, to be restored to at least one per cent of Commonwealth taxation revenue have fallen on deaf ears,” Mayor Carter said.
“The simple fact is that these grants have declined while expectations on local government to fund services and infrastructure have increased,” Mayor Carter said.
“Regional councils are making difficult decisions and cutting services and projects they simply can’t afford,” Mayor Carter said.
“Regional Capitals are shouldering a heavy financial burden and we’ll be asking the government to give us a fair go,” Mayor Carter said.