Mayor column: with Cr John Harvie

Published on 30 July 2026

You have, most likely, had enough of me writing about the dire financial situation that councils, across the nation, are dealing with on a day-to-day basis and the need to restore the financial assistance grant to one percent of federal taxation revenue. Last month, our Chief Executive Officer, Stacy Williams, councillor Joy Allan and I represented council at the Australian Local Government National General Assembly in Canberra where all 538 councils came together on the steps of the National Convention Centre and said, “Enough is Enough”.

Every state and territory local government association signed a letter to the speaker sending a message to the federal parliament calling for restoration of the Financial Assistance Grant to one percent of federal taxation revenue.

So….I am cautiously optimistic and pleased to share an announcement from the NSW and Australian Local Government Associations signalling a breakthrough on this issue.

The national voice for Australian councils has welcomed the Labor National Conference’s support for a ‘Federation Compact’ as a pathway to increased federal Financial Assistance Grants to support councils across the nation. Australian Local Government Association (ALGA) President Mayor Matt Burnett said the vote was an important recognition of the financial pressures facing Australia’s 538 councils and the communities they serve. Labor delegates committed to delivery of a Federation Compact between local and federal government that would increase federal funding assistance. “Today’s result reflects years of determined advocacy by ALGA, councils, local government associations, the unions representing council workers and community leaders across the country,” Mayor Burnett said. “This is a significant and encouraging result for local government and for every Australian community that depends on council services and infrastructure.”

Financial Assistance Grants are councils’ primary source of untied Commonwealth funding, allowing local governments to direct investment according to the particular priorities of their communities. However, the value of the grants has fallen from one per cent of Commonwealth taxation revenue in 1996 to just 0.49 per cent in 2026-27. A Federation Compact will formally recognise that councils cannot be expected to keep doing more with less and that a stronger funding partnership is needed.

“This is not the end of the process, but it is a major step forward,” Mayor Burnett said. “We look forward to working constructively with the Federal Government on a clear and achievable pathway to restore Financial Assistance Grants.”

NSW Country Mayors will attend a dinner with the Prime Minister in Sydney in August where we will demand that he commit to restore our funding to one percent.