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.
- Dr Henry review of Australia's Future Taxation System
- The Australian Local Government Association (ALGA) welcomes the comprehensive review of Australia's taxation system announced in the Federal Budget 2008-09.
- Applied Economics report to ALGA on Australia's Future Tax System
- This report is prepared as part of the submission of the Australian Local Government Association (ALGA) to the Australian Treasury Review of Australia's Future Tax System.
- ALGA's comments on final Productivity Commission Study on Own Source Revenue Raising April 2008
- The final Productivity Commission (PC) research report into local government revenue raising capacity was released on 17 April 2008. A summary of the PC’s findings is reproduced below.
- ALGA's comments on draft Productivity Commission Own-Source Revenue Study
- The Australian Local Government Association (ALGA) welcomes the opportunity to comment on the draft report of the Commission’s Study into Local Government Revenue Raising Capacity.
- 2008/2009 Budget Submission
- ALGA welcomes the Federal Government’s commitment to general expenditure restraint while at the same time identifying, as a priority, the need to address capacity constraints to the economy through strategic investment to reduce infrastructure bottlenecks, the education revolution and health reforms. ALGA fully supports these initiatives and looks forward to working with the Government on their implementation.
- Study into Local Government's own-source Revenue
- The Productivity Commission has been asked by the Australian Government to undertake a study to examine local government’s own revenue sources. The study will examine the capacity of different types of councils to raise revenue, the impact of the various revenue sources available to local government, and the impact of any State regulatory limits on local government’s revenue raising capacity. Australian Local Government Association's (ALGA) initial submission is attached.
- 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.
- Federal Budget 2006-07 analysis
- Each year ALGA provides an analysis of the Federal Budget with a specific focus on its impact on local government. The aim of the analysis is to provide local government with information on the total financial assistance it receives from the Australian Government as well as putting this assistance into context with the government's overall budget priorities.
- 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.
- Federal Budget 2005-06 analysis
- Each year ALGA provides an analysis of the Federal Budget with a specific focus on its impact on local government. The aim of the analysis is to provide local government with information on the total financial assistance it receives from the Australian Government as well as putting this assistance into context with the government's overall budget priorities.
