LGA urges federal partnership on roads, freight, funding and climate resilience
The submission aligns with the Australian Government’s Building Australia’s Future agenda and focuses on practical solutions that deliver safer roads, more efficient freight movement, financially sustainable councils and climate-resilient communities.
LGA’s four priority asks include:
1. Continuation of Supplementary Local Road Funding (SLRF)
LGA is calling on the Commonwealth to extend SLRF beyond 2025–26, with indexation and legislative certainty.
The submission seeks:
- ongoing SLRF funding to maintain equity in Commonwealth road investment
- indexation using the ABS Producer Price Index for Road and Bridge Construction, lifting funding to an estimated $31.8 million in 2026–27
- legislative certainty to enable sustainable infrastructure and asset planning
- a one-off $56 million catch-up payment to address nine years of unindexed funding.
Without this funding boost, South Australian councils will increasingly be disadvantaged in both per kilometre and per person funding by an unindexed funding pool, while costs for regular road maintenance and renewal continue to rise
2. Greater Adelaide Freight Bypass
LGA is seeking an additional $275 million in Commonwealth funding for the Greater Adelaide Freight Bypass, completing an 80/20 funding split of $800 million Commonwealth and $200 million state investment.
As Stage 1 of South Australia’s High Productivity Vehicle Network, the project will improve national east–west freight efficiency, enhance safety and support economic growth. Backed by Infrastructure Australia, the bypass includes key safety upgrades, township bypasses, bridge and intersection improvements, flood resilience works and grade separations.
3. Financial sustainability of local government
The submission calls for untied Financial Assistance Grants to be increased to at least 1 per cent of Commonwealth tax revenue.
Over the past three decades, the value of Financial Assistance Grants has declined from around 1 per cent to just 0.55 per cent of Commonwealth taxation revenue. This decline, combined with rising costs and growing service demands, is placing pressure on councils ability to maintain essential infrastructure and community services, particularly in regional and rural areas with limited revenue bases.
Restoring fair and sustainable funding would support local service delivery, improve liveability and strengthen economic productivity at both local and national levels.
4. Climate Ready Alliances program
LGA is seeking $7.5 million over five years in Commonwealth funding towards co-investment of a $15 million Climate Ready Alliances program.
Building on more than a decade of successful regional climate collaboration, the program would expand South Australia’s Regional Climate Partnerships into a statewide model, growing coverage from six to ten regional alliances. This investment would help councils prepare for increasing climate risks such as extreme heat, bushfires, storms and coastal hazards, while improving regional capability and equity.
Without renewed investment by August 2026, the existing program will end, risking the loss of hard-won expertise and collaboration.
LGA’s 2026–27 Pre-Budget Submission demonstrates how strategic Commonwealth investment in local roads, freight infrastructure, financial sustainability and climate resilience can deliver long-term benefits for communities and the national economy.
By working in partnership with local government, the Commonwealth can help ensure South Australia’s communities remain safe, productive and resilient into the future.