27 July 2026
Funding increase a big win for rural, regional and remote councils
LGNSW President Mayor Darcy Byrne has welcomed the Albanese Government's commitment to increase Financial Assistance Grants, highlighting the key benefits for rural, regional and remote councils facing an escalating funding crisis.
The Local Government Federation Compact, announced over the weekend at the ALP National Conference, includes a commitment to annually increase the level of Financial Assistance Grants to councils across Australia, helping strengthen the long-term sustainability of Local Government.
Financial Assistance Grants are a vital source of untied funding that councils use to help fund local roads, infrastructure and community services.
"This is a major breakthrough for rural, regional and remote councils and their communities across NSW,” Mayor Byrne said.
“The crisis in funding for councils in these areas has been getting more acute, and this recognition from the Federal Government that action must be taken is a big step forward.
“Now we need to work urgently to get this new compact established and implemented.
"In regional communities, we've got councils with thousands of kilometres of roads to maintain and ageing community infrastructure.
“Many of these councils are having to step in to fill the void left by the State and Federal governments when it comes to health services, aged care and housing.
“With limited revenue raising capacity, there’s a real danger in the medium term of councils running out of cash to deliver basic services.
“The clearest priority of the new compact will be fixing this crisis in our rural, regional, and remote communities.”
Along with the increase in financial assistance, the five-year Compact will:
- Ensure Roads to Recovery funding can be used to purchase plant and equipment to enable councils to carry out their own road maintenance with their own trained workers, to the extent possible;
- Support and increase the availability of apprenticeships in local government, as well as other employment programs in a local government context;
- Deliver new capabilities to improve outcomes in housing, planning, emergency management and aged care; and
- Ensure the Government publishes an annual summary of funding for Local Government.
Mayor Byrne said LGNSW looked forward to working with the Federal Government, unions representing the local government workforce, and local government associations across Australia to develop and implement the compact.
"We welcome the Federal Government's commitment and will immediately get to work collaboratively to ensure the compact delivers lasting benefits for councils and the communities they serve,” he said.