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MAV response to the Federal Budget

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In May the Federal Treasurer Jim Chalmers handed down the Federal Budget, which includes several announcements impacting the local government sector.

The MAV was pleased to see:

  • The weekend announcement of $2 billion budget commitment for housing enabling infrastructure which we welcomed on Sunday.
  • $2 billion over five years towards the new Thriving Kids initiative, with states and territories expected to match funding to establish a $4 billion national program.
  • A modest uplift in Victorian road funding to $285.7 million, alongside increased national investment in the Safer Local Roads and Infrastructure Program and the Active Transport Fund.

These announcements are big advocacy wins for the MAV, as they respond directly to our federal advocacy to ‘Make Community Infrastructure Happen' and 'Make Safer Roads Happen', as well as our calls for a reformed Maternal and Child Health system, recognising local government’s role as the front door to early years support for families.

The Budget however leaves important questions unanswered and creates ongoing uncertainty for councils and communities in some areas, including:

  • No indication of the future of the Commonwealth Home Support Programme which has only been extended until 30 June 2027.
  • Councils were not included in the additional $41.2 million over four years allocated to improve vaccination rates among children under five

One big question mark for the MAV is the Budget's commitment to reducing regulatory burden by $10.2 billion annually, alongside faster environmental, and low-risk foreign investment approvals aimed at accelerating project delivery. Combined with Victorian planning reforms and the increasing push for faster approvals, councils are likely to face growing pressure to expedite decision-making processes without corresponding state or federal government investment in local planning capability and systems.

Federal Government LG factsheet

As part of its Budget materials, the Federal Government has provided a clear factsheet on the ways in which this budget supports the local government sector.

ALGA response

The Australian Local Government Association (ALGA) had its policy team in the budget lock up to take a deep dive into the impacts of the Federal Budget for local government.

They've shared these resources with the sector, which I encourage you to read:

You can also read ALGA's Media Release highlighting the Key Outtakes.