The referendum for constitutional recognition of local governments has been put on hold, now many councils and governance groups want to know if the millions they spent on the ‘Yes’ campaign will be paid back.

The Prime Minister said this week that the referendum would have to wait now that the election has been called a week earlier than previously announced.

Local governments and councils had been thrilled at the prospect of constitutional recognition, which would have seen new avenues opened to channel funds directly from federal coffers to councils.

It is unclear now when or if the referendum will go ahead, leading to millions wasted on a campaign by local government groups to urge people to vote in approval. The Australian Local Government Association, the Municipal Association of Victoria, the Western Australian Local Government Association and other similar groups have made statements this week decrying the suspension of the vote, and some asking for their money back.

A spokeswoman for the Australian Local Government Association says the organisation is working to ensure the financial impact on councils is minimised.