The Senate has just passed a motion (see below) from Greens Treasury spokesperson, Senator Peter Whish-Wilson calling on the Federal Government to end the freeze on indexation of the Local Government financial assistance grants.
Senator Whish-Wilson said, “Local Government has to provide a disproportional amount of services and infrastructure than any other level of government, but are the most constrained in their ability to raise funds.
“The Federal Government’s freeze on the indexation of financial assistance grants has led to Local Government having to cut services and has limited their ability to borrow to build necessary local infrastructure.
“This freeze has been one of the constraining factors in ability of Local Government in Tasmania to get on and deal with the water and sewerage infrastructure issues.
“This motion, passed by the Senate, sticks a rocket up the Tasmanian Liberals to start to lobby their Federal colleagues to end the freeze on indexation of the financial assistance grants that has been holding back Tasmanian councils,” he concluded.
Notice of Motion275
Senator Whish-Wilson: To move—That the Senate—
(a) acknowledges the vertical fiscal imbalance in the Australian federal system and the impact this has on local government’s ability to meet its expenditure responsibilities;
(b) notes that Financial Assistance Grants to local government have been subject to an index freeze since the 2014-15 Federal Budget; and
(c) calls on the Government to lift the freeze on indexation of the Financial Assistance Grants in the 2017-18 Federal Budget.
Greens Treasury spokesperson, Senator Peter Whish-Wilson
