LGA provides feedback to ESCOSA second cycle
We received many submissions from councils and we thank you for your input and the insights provided to inform our sector submission.
The draft Framework and Approach outlines how ESCOSA intends to deliver the second cycle of the Scheme, from 2026-2030.
It builds on the foundations established during the first cycle, including the advice provided to all 68 councils and the observed practices and lessons learnt that have emerged across the sector.
LGA has put forward 11 recommendations that ESCOSA:
- develop guidelines and templates for written submissions under proposed assessment areas 1 and 2, to promote consistency, reduce administrative burden and minimise requests for additional information.
- provide a definition and scope of what constitutes ‘material changes’ in context or circumstances, including the types of factors and evidence that will be considered in the assessment.
- not use CPI as a benchmark measure for assessing rate setting or affordability, recognising that council cost drivers and service obligations do not necessarily align with consumer inflation.
- consider opportunities to understand drivers of cost increases, including consideration of whether councils have followed legislated engagement and consultation requirements with ratepayers prior to adopting rates.
- provide councils with information regarding the costs associated with cycle 2 assessments.
Financial sustainability has long been identified by council as the primary risk facing local government.
LGA is committed to supporting the sector with financial sustainability challenges, and most recently commenced work with the Local Government Finance Authority on a new Financial Sustainability Program to commence 1 July 2026.
A final Framework and Approach is now expected to be published by ESCOSA in early August.