7.3 Intergovernmental Finances
Local government acknowledges that the amount of funding from federal government in terms of special purpose grants and grants for priority projects is below the national average and that tax revenue shares and how revenue is distributed should be reviewed. Local government shall continue to maximise contributions and investment from other tiers of government to contribute toward local government financial sustainability.
Local government considers that the federal government should accept the principle of equitable revenue sharing with local government and should return its tax sharing percentage to a minimum of 1% of federal tax revenue, made available in untied grants. Councils, through the LGA and ALGA, will rigorously lobby for an equitable share of taxes from the Federal Government.
Local government maintains that the Federal Government should reconsider its distribution of local government’s share of revenue across states and territories. Councils, through the LGA and ALGA, shall continue to lobby for a change in distribution to reflect the needs of both resident populations and non-resident consumption of services to increase equality.
Local government recognises budgeting cycles of federal/ state governments as a vital opportunity to put forward financial proposals for priority/ specific purpose funding and to highlight cost impacts of their policies on local government. Councils, through the LGA and ALGA, will continue to lobby and advocate for the sector to achieve financial outcomes.
Local government recognises the value of partnerships with federal/ state government in delivering effective services through funding that may be offered over and above amounts already guaranteed. Local government shall continue to identify and maximise the potential for partnerships with federal/ state government for community benefit.
Local government acknowledges the importance of this independent statutory authority and that it should operate free from Ministerial Direction or control. Local government shall rigorously object to changes in representation and principles (of horizontal fiscal equalization) and lobby to resist non- independent influences.
Local government acknowledges that grants from other spheres of government are most beneficial when untied, and available unconditionally for a wide range of purposes. Local government shall continue to welcome grants from federal/ state governments and negotiate terms that will most benefit local communities.