THE 2026 Budget delivered Tuesday night has provided Local Government in remote, rural and regional New South Wales with a mixed bag of outcomes, according to Country Mayors’ Association of NSW chairman, Rick Firman.

“While we are pleased to see that the Federal Government has recognised that one of the greatest barriers to housing construction is the cost of enabling infrastructure like roads, stormwater, electricity and water. with its announcement of $2 billion in funding over four years to help in its delivery,” Mr Firman said.

“Only $500 million is earmarked for regional Australia, which is not nearly enough to deal with the growing demands for housing in regional areas.

“In New South Wales alone, our 89 member councils, represent almost 3 million people spread over an area of more than 700,000 kilometres. All our members are reporting problems with funding and delivering enabling infrastructure like roads, water, stormwater and sewerage,” he said.

“While $500 million seems like a lot of money when shared across all of regional Australia across four years, it is not nearly enough funding.

Country Mayors’ Association of NSW chairman Rick Firman.

“For example, recent new sewage treatment plants and major upgrades in New South Wales have cost between around $10 million and over $150 million,” Mr Firman said.

“We will be looking to speak with the Federal Minister for Infrastructure, Transport, Regional

Development and Local Government Catherine King, at the earliest opportunity, about the distribution of this vital grant funding and the quantum of funds allocated to remote, rural and regional Australia.

“The CMA is, however, pleased to see the Federal Government’s continued commitment to bringing the Roads to Recovery Program up to $1 billion dollars a year,” he said.

“Roads to Recovery funding is essential to Local Government’s continued challenge to maintaining our vast road networks.

“We are extremely disappointed that the Budget has failed to recognise the very real financial

challenges that Local Governments everywhere are having delivering services and infrastructure to the communities they serve.

“The Government’s failure to increase the Financial Assistance Grants’ funding allocation is a slap in the face. It is unbelievable that in an economy where prices in all sectors are increasing, the Financial Assistance Grants allocation has fallen from 0.51 per cent of total Commonwealth taxation revenue to 0.49 per cent.” Mayor Firman said.

“It is just not good enough. The failure of successive Federal Governments to recognise that by investing in councils they are investing in the communities that every Australian resident lives and works in, is beyond disappointing to say the least. Other grant funding announced in the Budget does not make up for the shortfall in the quantum of the Financial Assistance Grant,” Mr Firman said.

“Remote, rural and regional councils rely on this grant to provide and maintain public pools, sporting

fields, parks and gardens, libraries and cultural infrastructure not to mention the breadth and depth of supporting services we all provide We must and we will continue to advocate for the restoration of the Financial Assistance Grants to 1 per cent of total Commonwealth taxation revenue.

“Financial sustainability is the number one issue for our CMA member councils. Every day in so many

ways our councils are creating the communities that we all live in and every day our councils are

struggling to find ways to continue to deliver those services and facilities, because like everyone else

rising costs are impacting on our ability to make ends meet,” Mr Firman said.

“It is time for our Federal Government to recognise the pivotal role that councils play in maintaining the health, economic and social wellbeing of every community in Australia. The Federal Government needs to see that investing in Local Government is investing in the social fabric and social cohesion of 538 communities that are represented by their local council. It is past time for the Financial Assistance Grants to be restored to 1 per cent of total Commonwealth taxation revenue. The CMA will continue in our advocacy for that critical restoration,” Mr Firman said.