Mayor supports calls to restore Financial Assistance Grants funding

Published on 17 February 2025

Narrabri Shire Council Mayor Darrell Tiemens has supported calls by the NSW Country Mayors Association (CMA) for the Federal Government and Opposition to commit to restore Commonwealth Financial Assistance Grants funding.

The Financial Assistance Grants program provides a vital funding stream to local councils, enabling them to provide a mix of services and infrastructure.

“As highlighted by the CMA, the level of funding under the program has eroded over the years from 1% of the Commonwealth’s tax take in 1996 to just 0.5% today,” Mayor Tiemens said.

“Local councils – particularly those located in rural and regional areas like Narrabri Shire, have continually voiced concern and alarm at this decrease in funding.

“Reduction of this funding further contributes to the financial sustainability challenges that rural and regional councils continually face, including cost-shifting from State and Federal governments to councils,” Mayor Tiemens added.

“Combined with rate-pegging and increasing operating costs, this has an impact on our delivery of services and infrastructure, including maintaining Council’s 2,343-kilometre road network.”

Council’s concerns around reduction of Financial Assistance Grants funding were highlighted in its submission to last year's Federal Inquiry into Local Government Sustainability.

“Around 46% - or nearly half - of Council’s income comprises grants and funding from State and Federal governments,” Mayor Tiemens said.

“Any reduction in this funding impacts hugely on service delivery, which includes waste facilities, water services, libraries, pools, recreational facilities as well as infrastructure such as roads.”

Mayor Tiemens emphasised the significant contribution of Narrabri Shire to the Federal tax income.

“As the second largest economy in the region – after Tamworth, on average Narrabri Shire residents and corporate entities contribute an enormous amount of tax to the Federal Government.

“Therefore, our area deserves its fair share of the Commonwealth’s tax take in line with this significant contribution to our nation’s economy.

“Together with the CMA, I hope to see a commitment from all sides of our Federal Government to return Financial Assistance Grants funding to 1996 levels.

“This will help guarantee the financial sustainability of Narrabri Shire Council and ensure the continued delivery of critical services and infrastructure to our communities.”