Council backs national call for fairer funding

Published on 25 June 2026

Indigo Shire Council has added its voice to a national call for the Federal Government to restore fair funding to local councils.

This week, all 538 local councils across Australia wrote collectively to the Speaker of the House of Representatives to warn of a financial crisis affecting local government, a step that is unprecedented in its scale and unanimity.

Mayor Sophie Price said the letter reflects what Indigo Shire has been experiencing firsthand.

"This isn't just a national issue, it's our reality right now. Rate capping, cost-shifting from state and federal governments, and rising construction costs are putting enormous pressure on what we can deliver for our community," Cr Price said.

"Indigo is a small rural council. We have ageing infrastructure, growing community expectations, and limited options to raise revenue. When Financial Assistance Grants have fallen to roughly half of what they once represented as a share of federal taxation, that has real consequences for the services and facilities our community relies on."

The letter, signed by the presidents of every state and territory local government association, calls on the Australian Parliament to immediately increase Financial Assistance Grants by $3.5 billion, restoring them to 1% of federal taxation revenue annually.

"The ask is clear and it is fair," Cr Price said. "Councils are not asking for special treatment, we are asking for the funding certainty that allows us to plan, invest and deliver for our communities over the long term."

Cr Price said attending the National General Assembly in Canberra this week had reinforced the scale of the challenge facing councils across the country.

"Councils from every corner of Australia are facing the same hard decisions. The financial sustainability of local government is the number one issue right now, and it was front and centre at the NGA this week. The federal government is now conducting an inquiry into the sustainability of local government, that's a direct result of sustained advocacy, and it matters."

"Indigo Shire will continue to advocate strongly for fairer funding, for our community and for every rural and regional council facing these same pressures."

ENDS