Councils across the region are celebrating a “historic” national deal that promises to pump more money into local roads, jobs and services for years to come.
Lismore MP Janelle Saffin has hailed a new Local Government Federation Compact, announced at the ALP National Conference in Adelaide, as a major win for regional, rural and remote councils and their communities.
“I was proud to be among the NSW delegates who voted unanimously in favour of annually increasing Financial Assistance Grants to the Australian local government sector,” Ms Saffin said.
“I applaud Local Government NSW President Cr Darcy Byrne and United Services Union General Secretary Graeme Kelly OAM (both city dwellers) for championing this campaign since 2018.”
“Both are committed to fairness for all, and their strong advocacy demonstrates this,” Ms Saffin said.
“The Compact is a game changer for our communities and especially so the ones that make up the Lismore Electorate I am honoured to represent, Tenterfield Shire, Kyogle, Lismore City, Byron Shire, and Tweed Shire.
“I look forward to the advance of the amendment and its implementation.”
The Country Mayors Association of NSW, which represents 89 remote, rural and regional councils, said the Compact went to the heart of the problems facing almost every council in the country.
“Financial sustainability is the number one issue facing our Members. The Federation Compact which we understand was unanimously supported by delegates at the Conference is very welcome news,” CMA chairman Mayor Rick Firman OAM said.
“The Compact goes to the heart of the problems that almost every council in Australia faces; financial sustainability, skills shortages, road maintenance and the capacity to deliver the services our communities need.”
Financial Assistance Grants, the untied funding that lets councils deliver the infrastructure and services their communities need, have fallen from 1 per cent of total tax revenue in the mid-1990s to just 0.49 per cent in the most recent budget, according to the CMA.
“While we appreciate there is more work to do, to tease out the fine details of the operation of the Compact, the commitment to on-going annual increases for the Financial Assistance Grant is great news,” Mayor Firman said.
“The CMA along with our friends at LGNSW, ALGA, the USU as well as other state and territory associations and councils across Australia have worked hard to encourage Federal Governments to commit to sustainable funding for Local Government.”
Mayor Firman thanked Prime Minister Anthony Albanese for supporting the initiative, and said the work now needed to turn Labor’s conference support into implemented government policy as quickly as possible.
Glen Innes Severn Mayor Margot Davis, one of the main people leading the charge for increased federal funding for local councils, said the Compact was “a major breakthrough for local government across Australia”.
“This is an historic and very welcome step forward,” Mayor Davis wrote on Facebook.
“For years, mayors, councillors and local government associations across Australia have consistently warned that councils are being expected to deliver more services, maintain more infrastructure and respond to growing community needs with a shrinking share of national taxation revenue.”
Mayor Davis wrote that every local government association in the country, representing all 538 councils across Australia, had stood together last month to call on the Federal Parliament to address the sector’s financial sustainability crisis.
“I am proud that Glen Innes Severn Council has been part of that national effort. At the 2025 and 2026 National General Assembly, I strongly advocated for the restoration of Financial Assistance Grants to 1% of Commonwealth taxation revenue, alongside mayors and councillors from communities right across the country,” she wrote.
Beyond the increased grants, the five-year Compact will also let Roads to Recovery funding be used to buy plant and equipment so councils can carry out more of their own road maintenance with their own trained workers, expand apprenticeships and employment programs in local government, strengthen council capability in housing, planning, emergency management and aged care, and require annual reporting of Commonwealth funding to local government.
Mr Kelly has written to NSW councils confirming that the United Services Union, Australian Services Union, AWU Queensland and Local Government NSW achieved the Compact on Saturday, 25 July.
Thanking the Prime Minister for his support of the local government sector and its workers, Mr Kelly said the Compact would let councils plan more effectively and keep skilled workers in secure, local jobs.
Cr Byrne said the funding crisis facing councils in rural, regional and remote areas had been getting more acute, and this recognition from the Federal Government that action must be taken was a big step forward.
“LGNNSW looks forward to working with the Federal Government, unions representing the local government workforce, and local government associations across Australia to develop and implement the Compact,” Cr Byrne said.
Mayor Davis said the fight was not over yet, but it was a win worth recognising.
“It is a win for local government, a win for regional Australia and a strong example of what can be achieved when mayors and councils across the nation speak with one united voice.
“Persistent advocacy works. Unity works. And our communities are stronger when local government is properly funded.”
“This is not the finish line. The detail, funding trajectory and implementation timetable will now matter.”
“We must continue advocating until Financial Assistance Grants are restored to a fair and sustainable level,” she said.
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