Corangamite Shire

Council Services

Mayor calls on Federal Government to honour promise on Federal Assistance Grants

Corangamite Shire Mayor Jo Beard is calling on the Federal Government to honour its promise to restore indexation of Financial Assistance Grants in the May Federal Budget.

She said the Prime Minister must end the freeze to ensure that federal grants to local government grow in line with population and the Consumer Price Index (CPI).

Grants are indexed by a combination of CPI and the rate of population growth. However, the former Treasurer placed a three-year freeze on the indexation component in the 2014 Federal Budget.

Mayor Beard said there were concerns the Federal Government would back away from its promise to restore indexation.

“Financial Assistance Grants are a vital source of funding for councils, helping to deliver local services and maintain community infrastructure,” Cr Beard said.

“They are even more important to large rural shires with limited alternative funding sources.”

“For Corangamite Shire, it would mean a $140,000 hit to next year’s budget.

“That’s $140,000 that will not go into maintaining our roads or delivering services to our communities, purely because the Federal Government has reneged on its promise,” she said.

The Australian Government provides Financial Assistance Grants to councils nationally to assist with the costs of providing essential local services to communities. The grants redistribute taxation revenue back to local communities as the Commonwealth collects 79.9 per cent of all taxes, while local government collects around 3.6 per cent of taxes through property rates.