Australian Local Government Association

Key points

See also:

• Examples of cost shifting
• Timeline and background
• ALGA Media release
• Local Government and Planning Ministers Council communiqué
• Full text of the IGA
• Federal Local Government Minister's media release

Purpose

The IGA provides a framework to improve the way the three spheres of government - federal, state and local - relate to each other to achieve the best possible outcomes for communities.

Outcomes - what will the IGA do?

1. Improve relationships between the three spheres of government by facilitating an open exchange of information and by encouraging greater co-operation.
2. Promote more effective and efficient government.
3. Provide greater transparency in the financial arrangements between the three spheres of government in relation to local government services and functions.
4. Ensure effective consultation with local government, through local government peak representative bodies where appropriate, on the delivery of services and functions.

Part I: Fundamental principles

• All parties are committed to achieving an open and productive relationship between the three spheres of government.
• All parties acknowledge the need for services and functions to be provided to communities in an efficient and effective manner.
• All parties agree in principle that where local government is asked or required by the Commonwealth Government or a State or Territory Government to provide a service or function to the people of Australia, any consequential financial impact is to be considered within the context of the capacity of local government.

Part II: Existing arrangements

The IGA does not apply to existing arrangements.

Part III - Principles for further agreements on specific service provision

Where the Commonwealth or state seeks through non-regulatory means, the provision by local government of a service or function they shall:

• respect the right of local governing bodies to decide whether they will accept the responsibility
• negotiate with the relevant local governing bodies, or the relevant peak local government body
• where possible reach agreement with the relevant local governing bodies or peak local government representative body on the terms and conditions

Where the Commonwealth or state/territory and local government propose that a service or function should be jointly provided, they shall:

• agree to the objectives, design, standards, and shared funding arrangements
• negotiate (where applicable) with the relevant local governing bodies, including the relevant peak local government representative body

Where the Commonwealth or state intends to impose a legislative or regulatory requirement on local government for the provision of a service or function, subject to exceptional circumstances, it shall consult with the relevant local governing bodies or peak local government representative body and ensure the financial implications and other impacts for local government are taken into account.

For its part, local government commits to sound public governance

Part IV - Framework for further agreements

Further agreements on specific functions or services must address:

• clear outcomes
• clearly defined roles and responsibilities of each level of government
• clear financial mechanisms
• monitoring and evaluation processes
• dispute resolution mechanisms

Part V - Review and compliance

The IGA will be reviewed and compliance assessed within five years. Disputes can be considered by the Local Government and Planning Ministers Council.