FEDERAL Member for Parkes, Jamie Chaffey and Shadow Minister for Regional Development, Local Government and Territories, Senator Bridget McKenzie, said the Federal Budget has failed to deliver a long-term plan for the financial sustainability of Australia’s local government sector, leaving regional, rural and remote councils once again carrying the burden of rising costs, ageing infrastructure and growing community expectations without adequate support.

Ms McKenzie said the Albanese Government made no commitments to support the local government sector during the 2025 election campaign, and this Budget confirms local government remains an afterthought for this Government.

“The local government sector set the Government series of tests ahead of the budget to help manage mounting costs, and Labor failed every single one of them,” Senator McKenzie said.

“Whether it comes to assistance to provide for housing, community infrastructure local roads, disaster resilience or helping to meet the costs of Labor’s Net Zero objectives, the budget let our councils down.

Mr Chaffey, Shadow Assistant Minister for Regional Development, Local Government and Territories, said the Government cannot continue to avoid the financial challenges facing our local governments.

“The Government is all too willing to cost-shift additional burdens onto the sector, but missing when it comes to action,” Mr Chaffey said.

“It is hard to believe that after the plea by the desperately forgotten councils to lift the inadequate Financial Assistance Grants amount of 0.51 per cent of Commonwealth taxation revenue, they have actually dropped it to 0.49 per cent.

“This is even less money for councils who are struggling with financial sustainability.

“When the Federal Government walks away from funding, then everyday ratepayers are forced to pick up the bill.

Councils are tasked with a huge range of services for more and more people with less and less money”.

At the same time, Labor’s infrastructure commitments linked to housing development fall well short of the Coalition’s 2025 election commitment to unlock 500,000 new homes over five years through targeted infrastructure investment, Mr Chaffey said.

Without adequate enabling infrastructure – including roads, water, sewerage and community facilities – housing growth in regional Australia will continue to stall.

“Regional Australia cannot continue to do more with less,” Mr Chaffey said..

Senator McKenzie said Local government is the level of government closest to the community and plays a critical role in supporting economic growth, liveability and resilience across Australia.

“Without a serious long-term funding strategy, regional councils will continue to face impossible choices between maintaining roads, delivering essential services and supporting future growth,” she said.