Long-awaited federal road funding a boost for South Australia
The Federal Budget has locked in $230.8 million to continue Supplementary Local Road Funding for South Australia for the next decade.
Under this new commitment, South Australia will receive $20.6 million in 2026-27, with the annual amount increasing year on year with indexation.
It’s the first time this program funding has been given long-term certainty and follows sustained advocacy from LGA South Australia, which has worked closely with Federal MPs and Ministers over many months to highlight the need for a fairer and more sustainable funding model for our state’s local road network.
Federal Minister for Regional Development, Local Government and Territories, Kristy McBain said the Government understands the importance local roads play in the lives of regional Australians.
“This funding will help improve safety, freight efficiency and connectivity for communities across South Australia, particularly for regional communities,” Minister McBain said.
“It’s another way the Albanese Government is delivering for all South Australians.”
Senator for South Australia, the Hon Don Farrell said the funding will support communities, road safety and the important work undertaken by councils across the state.
“I am pleased the Albanese Labor Government is able to provide ongoing certainty to South Australian councils by making the Supplementary Local Road Funding program ongoing and indexed to the CPI,” Senator Farrell said.
“This commitment builds on the Australian Government’s significant ongoing funding to local governments to maintain and repair local road networks, including Roads to Recovery, Black Spots and Safer Local Roads and Infrastructure programs.”
LGA South Australia President, Mayor Heather Holmes-Ross said the funding was an important step toward addressing long-standing inequities in federal local road funding allocations to South Australia.
“Historically, South Australia has missed out on our fair share of road funding. This budget begins to address that, and it means councils can get on with delivering important road maintenance, knowing that this funding is locked for the next 10 years,” Mayor Holmes-Ross said.
“LGA South Australia and our members have sought to work constructively with the Federal Government on finding a workable solution that responds to the needs of South Australian communities to have safe, well-maintained local roads.
“We put forward fair and practical solutions, and we are pleased that the Federal Government has acknowledged this through its Budget commitment.
“We extend our thanks to Ministers Catherine King and Kristy McBain, and Senator for South Australia Don Farrell, who have understood the important role that councils play in maintaining our local road network.”
The commitment will help councils better plan long-term road maintenance and renewal projects, particularly in regional areas where councils are responsible for maintaining extensive local road networks.
“Reliable roads are critical for regional South Australia. They help move freight for key industries like agriculture and mining, make travel safer, and keep regional economies moving,” Mayor Holmes-Ross said.
“This funding will help councils manage rising construction costs so important road projects can continue without delay, helping to better connect regional communities, support economic growth, build resilience and improve liveability across the state.”
In the lead-up to the Federal Budget, LGA South Australia called for Supplementary Local Road Funding to increase to $31.8 million in 2026-27, alongside a one-off $56 million catch-up payment to address years of unindexed funding that has contributed to growing maintenance backlogs across the state’s local road network.
“While we didn’t quite see that level of funding committed in this Budget, this is still a significant step towards addressing the scale of the local road funding gap facing South Australian councils,” Mayor Holmes-Ross said.
“This commitment is an acknowledgment from the Federal Government of the disadvantage South Australia has faced in terms of local road funding and reflects the strength of our partnership in collaborating to find workable solutions to address long-standing issues”.
For a full snapshot of what the Federal Budget 2026-27 means for local government, visit Federal Budget Snapshot 2026-27