Hunter councils welcome Labor commitment to boost Financial Assistance Grants

Newy 87.8 FM – The Hunter Joint Organisation has welcomed a commitment by the Australian Labor Party to increase Financial Assistance Grants and strengthen support for local government, announced at the party's annual conference over the weekend.

The organisation, which represents the collective voice of the region's ten Mayors, said the announcement was consistent with years of advocacy from local government across Australia.

Financial Assistance Grants have been a central part of Federal funding for local government since 1974, but have fallen from 1 per cent of Commonwealth taxation revenue in 1996 to just 0.49 per cent in 2026–27. Australia's 538 councils are calling for the grants to be restored to 1 per cent.

The Hunter Joint Organisation said council rates alone no longer cover the cost of maintaining essential infrastructure and delivering community services, with some Hunter councils relying on grants for up to 60 per cent of their revenue.

Earlier this year, the organisation made a submission to the Federal Inquiry into Local Government Funding and Fiscal Sustainability, highlighting pressures including cost shifting, increasing service demands, ageing infrastructure and disaster recovery costs.

Along with the Australian Local Government Association and Local Government NSW, the Hunter Joint Organisation said it now looks forward to similar commitments from other parties ahead of the next Federal election, and to working with all political parties to turn the commitment into lasting funding reform.

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