NSWCMA: Councils get another Coalition promise but crickets from Labor

Published on 24 April 2025

Chairman of the Country Mayors Association of NSW (CMA) Mayor Rick Firman OAM has welcomed the Federal Coalition’s promise to return the popular project-based Building Better Regional Fund (BBRF). “We have tried to engage with Federal politicians across the spectrum to discuss appropriate funding for rural, regional and remote Councils. To hear nothing but crickets in response from Labor, The Greens and other parties is very disappointing, to say the least,” he said.

The Coalition has announced that should they win the upcoming election, $250 million would be made available through the BBRF for local infrastructure projects in regional, rural and remote communities. The Australian Local Government Association (ALGA) President and Gladstone Mayor, Cr. Matt Burnett also welcomed the announcement.

Under the Coalition’s proposal, councils and not-for-profit organisations would be eligible to apply for grants of between $25,000 to $200,000 for community initiatives and $50,000 up to $10 million for community and economic infrastructure.

The BBRF proposal came less than two weeks after the Coalition pledged $1Billion into Local Government nationwide, through a revitalised ‘Local Roads and Community Infrastructure program’. “My fellow Country Mayors of NSW and I greatly appreciate that the Dutton-Littleproud Coalition recognise the need to improve the funding situation for Councils. The BBRF delivered a lot of really positive projects for rural, regional and remote communities in the past,” Mayor Firman said.

The Roads to Recovery Program budget is gradually increasing over the 2024-29 funding period, so that it will reach $1 billion per year nationally from 2027-28. “We thank the Federal Government for that,” Mayor Firman said. The total five-year amount for each funding recipient is divided to provide a nominal annual funding allocation that reflects this annual increase. “This certainly helps Councils with their local road maintenance obligations but does not overly strengthen their financial sustainability; for that we need untied funding, especially for those councils with stagnant or reducing rates revenue,” he said.

“Despite our appreciation and gratitude, we won’t be happy until the Australian Government’s Financial Assistance Grants are returned to one percent (1%) of Australian taxation revenue, from the 0.5% they have dwindled down to, during a period of massive cost increases for Councils. The methodology must also be improved to ensure the funding goes to rural, regional and remote Councils, where the need is greatest. This funding supports the general operations of Councils. It has been the decline of this funding, together with the State and Federal Governments’ shifting of cost-burdens onto Local Government that has necessitated an unprecedented number of Special Rate Variations in NSW in recent years,” Mayor Firman explained.

The ‘Interim Australian Government Report into Local Government Sustainability’ was released in February. In a public statement following the release, Chair of the Committee, Mr. Luke Gosling OAM, MP, said “local governments around Australia are increasingly being called upon to provide healthcare services and housing, manage ageing infrastructure and assets, and respond to current and future climate adaptation needs. These additional responsibilities are placing a significant financial strain on local governments who are struggling to meet community expectations, especially in rural, regional and remote Local Government Areas.”

“If the current Government and other parties are to approach this election with any credibility, we must see a genuine Financial Assistance Grants response to the Federal Local Government Sustainability inquiry,” Mayor Firman said. “Surely someone in Canberra is going to listen to us in rural, regional remote NSW communities. All we want is a fair go.”

The CMA represents 89 rural, regional and remote councils in NSW. It focusses on the inequities and additional challenges faced by non-metropolitan Councils.

Caption: CMA Deputy Chairman Russell Fitzpatrick of Bega Valley Shire Council and Chairman Mayor Rick Firman OAM, of Temora Shire Council 

Contacts: Mayor Rick Firman OAM, CMA Chairman: 0429 204 060
Mayor Russell Fitzpatrick, CMA Deputy Chairman: 0400 956 388
Mr Gary Fry, CMA Secretariat, Mobile: 0427 008 572
Email: admin@nswcountrymayors.com.au