Local government plays an important and expanding role in the Australian federation, delivering a broad range of important services at the local level. However, it is also under growing financial pressure that hinders its ability to provide for the increasingly complex needs of 21st century communities.
An overview of the financial situation and details of the solutions offered by local government are provided, together with extensive information on the Australian taxation system and the growing body of work that supports the case for reform.
- Henry Taxation Review
- The Australian Government commissioned Dr Ken Henry to undertake a comprehensive review of Australia's Taxation and transfer system. ALGA presented two submissions and an analysis of the final recommendations.
- ALGA submissions to the Federal Budget
- Each year ALGA presents the Australian Government Treasurer with a submission about the policies and priorities that the Australian Goverment should pursue in the next financial year.
- Productivity Commission study into Local Government own-source revenue raising
- The Productivity Commission conducted a study into Local Government's revenue raising capacity. ALGA participated in the study and the final report was released on 17 April 2008.
- National financial sustainability study of local government (PwC Report)
- The Australian Local Government Association (ALGA) commissioned PricewaterhouseCoopers (PwC) to complete this national study on the financial sustainability of local government. The study identifies that local government is responding to rising community expectations by providing a growing range of essential services and infrastructure that underpin local communities. This expansion in roles and service quality, coupled with growth in input prices generally exceeding the average rate of revenue growth, has seen a significant number of councils develop financial operating deficits.
- Financing facts
- Facts about local government financing, including revenue, expenditure and income sources as well as facts about the need for reform and action concerning cost shifting and general financing arrangements
- Fair share
- The Fair Share Report on cost shifting and local government financing, tabled in Federal Parliament in November 2003, makes the case that local government is under-resourced and is not achieving a fair share of taxation revenue. ALGA has further developed the case.
- Cost shifting
- Resolving cost shifting is a core business for ALGA. As part of its contribution to the Cost Shifting Inquiry, ALGA made a submission as well as a supplementary submission. The Fair Share report tabled in Federal Parliament in 2003, supports local government's claim that other spheres of government have undertaken in extensive cost shifting. The only way to resolve cost shifting, the report found, was for all spheres of government to work together.
- Taxation arrangements
- This section provides a broad oversight of the Australian taxation arrangments. It looks at who has access to the majority of Australia's tax dollars as well as a history of tax sharing arrangements between the Australian Government and local government.
