Damian Thomas
Director Advocacy
P: 02 9242 4063
E: [email protected]

Graphic - zoom in to Parliament House on $5 note, with word Budget written on it.

Federal Budget 2024-25 — highlights

Financial Assistance Grants

Disappointingly, there have been no increases to FA Grants beyond the legislated formula for indexation.

In 2024-25, the Australian Government will provide $3.27 billion in FA Grants.

For NSW councils, this means $708.8 million for the general purpose component and $291.7 million for the Local Roads Component grants, making a total of just over $1 billion in FA grants funding to NSW councils.

The Australian Government still has not delivered on its pre-election promise of “fair increases” to FA Grants, which equalled 1% of the national tax take on their introduction and have now been eroded to 0.51%. 


The Australian Government has delivered on its promise to progressively increase Roads to Recovery funding to $1 billion a year, which will be achieved by 2027-28. For 2024-25, funding for this program will be $649.4 million nationally, with $181 million for NSW councils.

The Australian Government is consolidating the existing Bridges Renewal Program and Heavy Vehicle Safety and Productivity Program into a single stream with $15 million more in funding: the Safer Local Roads and Infrastructure Program, worth $200 million annually from 2024-25 ($64.4 million for NSW councils).

The Black Spot Program has increased to $131.6 million ($38.8 million for NSW). 


It is welcome that the Australian Government has announced a continuation of the National Housing and Homelessness Agreement, with indexation.

This renewed funding for public and social housing and homelessness services will amount to $1.86 billion a year. However, it is disappointing there is no new funding for public and social housing, despite the critical need in this area.

This budget does note that the Government has made available an additional $1.9 billion for community housing providers to support delivery of social and affordable housing. This does not represent government funding for social and affordable housing, but rather an increase in the limit the Australian Government is willing to lend to developers.

The Australian Government has also announced $1 billion for states and territories to support infrastructure to enable more housing. While welcome, excluding councils from this funding hampers the ability of councils to contribute to achieving Housing Accord targets.

Other measures

The valued Local Roads and Community Infrastructure Program is still scheduled to be phased out by the end of 2025-26. This funding for roads, open space, sporting facilities, active transport infrastructure and tree planting is critical to what makes our communities liveable and it is disappointing that the Australian Government has not changed its decision to end this program.

Aged care: An additional 24,100 home care packages will be made available across Australia in 2024-25 ($531.4 million), to meet the growing preference for older people to continue to live independently in their own home. Many councils deliver these services in partnership with the Commonwealth.

In 2024-25, NSW is set to receive $1.9 billion less than previously forecast in GST revenue, placing further pressure on the NSW State Budget, due to be handed down by the NSW Treasurer on 18 June.

* More information and analysis about the Federal Budget's impact on local government can be found in the Australia Local Government Association's media release and fact sheets.