This week's federal budget contains several initiatives relevant to the local government sector. 

The Commonwealth Government’s 2022-23 federal budget includes funding to support council-led projects aimed at stimulating economic recovery.

Advocacy through the Australian Local Government Association (ALGA) has delivered a $500 million extension of the Local Roads and Community Infrastructure Program.

This extension should help councils deliver important projects for libraries, sporting facilities, bike and walking trails, streetscape improvements and playgrounds in their communities.

An allocation of $2.8 billion in untied Financial Assistance Grants, or 0.55 per cent of Commonwealth tax revenue, was provided in the budget, with $2.1 billion to be paid in 2021-22. 

However, councils had advocated for the level of the grants to be restored to at least one per cent of Commonwealth revenue. Expert analysis shows increasing Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue would create 16,000 jobs and add around $2.37 billion per year to Australia’s GDP. 

Additionally, the government did not include any further forward allocation for the Supplementary Local Roads Program, which was created to address the inequity that exists in the allocation of local roads funding. 

Also included in the budget is funding for disaster funding advocated through local government to support the recovery of impacted communities and improving their resilience to natural disasters.