NSW Parliamentary Inquiry into Ability of local governments to fund infrastructure and services

Councils receive grants from Federal and State Governments as well as Charging Fees (e.g. for School Swimming Carnivals and Domestic Waste Collection) and Rates.

According to monthly investment report Inner West Council currently has $276,000,000 sitting in Banks. - Item 14, 5th March Council Meeting Investment Report at 31 January 2024

 

"NSW Government announces review into funding model of councils to address financial sustainability concerns

Ron Hoenig – Minister for Local Government

Tuesday, 30 January 2024

The NSW Labor Government is delivering on its election commitment announcing it will implement a review of the financial model for local government to address rising cost pressures facing councils across the state."... https://www.olg.nsw.gov.au/media-releases/nsw-government-announces-review-into-funding-model-of-councils-to-address-financial-sustainability-concerns/

NSW Parliamentary Inquiry: "Ability of local governments to fund infrastructure and services

This inquiry was established on 14 March 2024 to inquire into and report on the ability of local governments to fund infrastructure and services." ... https://www.parliament.nsw.gov.au/committees/inquiries/Pages/inquiry-details.aspx?pk=3040

Financial Assistance Grant program

"The Australian Government will have provided over $67 billion under the Financial Assistance Grant program to local government since 1974–75 (including 2023–24). The grant is provided under the Local Government (Financial Assistance) Act 1995 (the Act).

The Financial Assistance Grant program consists of two components:

• a general purpose component which is distributed between the states and territories according to population (i.e. on a per capita basis), and
• an identified local road component which is distributed between the states and territories according to fixed historical shares.

Both components of the grant are untied in the hands of local government, allowing councils to spend the grants according to local priorities.

Local government grants commissions in each state and the Northern Territory recommend the distribution of the funding under the Financial Assistance Grant program to local governing bodies in accordance with the Act and the National Principles for allocating grants."... https://www.infrastructure.gov.au/territories-regions-cities/local-government/financial-assistance-grant-local-government