The McKell Institute has released a new report, Giving Local Government the Reboot - Improving the Financial Sustainability of Local Governments. Written by staff of the University of Technology Sydney Centre for Local Government (UTS:CLG), the report delves deeply into the financial issues facing most local councils. The report finds that many local governments are suffering from expenditure problems due to demand from the community that has been rising steeply over two decades.
In the two decades from 1995 to 2015, Australian local governments experienced a fourfold increase in expenditure. This represents 7.3 per cent per annum compound growth rate. Even more striking though, is that during this same period many local governments were stripped of their water and sewerage functions – so these figures actually underrepresent the real picture.
An increase in local government expenditure is not in and of itself problematic, but if the current level of spending continues then there needs to be a corresponding increase in council revenues. This is relatively unlikely as Australians would not be willing to substantially increase their local council rates each year, for twenty years. Even if state and federal governments provided funding, which seems unlikely in the current political environment, then the money would still be derived from higher levels of tax but just levied by other government sources.
The report was co-authored by UTS:CLG Director Associate Professor Roberta Ryan and Postdoctoral Fellow Dr Joseph Drew.
Download the report
Giving Local Governments the Reboot (pdf, 1,787 kb)About the McKell Institute
The McKell Institute is an independent, not-for-profit, public policy institute dedicated to developing practical policy ideas and contributing to public debate. The McKell Institute takes its name from New South Wales’ wartime Premier and Governor-General of Australia, William McKell. William McKell made a powerful contribution to both New South Wales and Australian society through significant social, economic and environmental reform. For more information phone (02) 9113 0944 or visit www.mckellinstitute.org.au
About UTS:CLG
The University of Technology Sydney Centre for Local Government (UTS:CLG) is the leading university-based Centre in Australia delivering an extensive program of local government research, teaching and specialist consulting services. UTS:CLG is part of the UTS Institute for Public Policy and Governance (UTS:IPPG).
Further information
Associate Professor Roberta Ryan
Director
UTS Centre for Local Government
UTS Institute for Public Policy and Governance
t: +61 2 9514 2643
e: roberta.ryan@uts.edu.au
Dr Joseph Drew
Postdoctoral Fellow
UTS Centre for Local Government
UTS Institute for Public Policy and Governance
e: joseph.drew@uts.edu.au