Hunter councils welcome Labor pledge 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, made at the party's annual conference over the weekend.

The organisation, which represents the collective voice of the region's ten Mayors, 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.

Financial Assistance Grants have been a central part of Federal funding for local government since 1974, but have fallen from one 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 one per cent.

The Hunter Joint Organisation, along with the Australian Local Government Association and Local Government NSW, said it now looks forward to similar commitments from other parties ahead of the next Federal election.

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

The organisation said the next step is putting the commitment into practice, giving councils the sustainable, long-term funding needed to plan ahead and continue delivering for their communities.

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