Councils nationwide are celebrating the ALP's proposal to direct revenue from the first two years of the fuel excise indexation, about $1.1 billion, towards additional Roads to Recovery funding.

Deputy Prime Minister Warren Truss announced this week that local governments across Australia would receive an extra $300 million in 2015–16 under Roads to Recovery, on top of the $700 million they are already receiving - a $1 billion cash injection in local roads over the next 12 months.

Australian Local Government Association (ALGA) president Cr Troy Pickard, said: “The additional funds will bring the Roads to Recovery program funding to around $1 billion for each of the next two financial years and will help strengthen local economies through projects that will create jobs and improve the productivity and safety of local roads”.

“Councils across the country will benefit from the extra funding which will be spent addressing the needs of their local communities,” he said.

“The funding is particularly welcome at a time when councils have had to make tough decisions following the 2014-15 Federal Budget freeze to the indexation of Financial Assistance Grants, which is estimated to cost councils around $925 million in the period to 2017-18.

Local Government Association of Queensland President Margaret de Wit said the Association was delighted.

“It is gratifying to know that the Government places high priority on local roads infrastructure and understands the importance of local delivery,” Cr de Wit said.

“The predicted growth of revenue from the excise will lift local job creation and productivity enhancing road infrastructure, and will be a welcome boost for our regional communities.”