Well-funded councils are essential for delivering quality local infrastructure and services. From roads to swimming pools, libraries and waste collection, council services are the backbone of local communities – yet their funding is uncertain.

In recent years, council finances have been under growing pressure, particularly in Western Sydney. WSROC councils are juggling the costs of rapidly growing populations, natural disasters, increasing material costs, and increasing workloads from federal and state governments.

While financial burdens increase, councils have been subject to funding freezes and an increased reliance on competitive, short-term grants.

There is an urgent need to reform council funding to allow long-term strategic planning and ensure communities receive the infrastructure and services they need.

WSROC supports recommendations by Local Government NSW and the Australian Local Government Association (ALGA) calling for measures to improve the sustainability of local government funding arrangements. These include:

• Restoring Financial Assistance Grants to 1% of total Commonwealth tax revenue.
• Reducing cost shifting and legislate to prevent new cost shifts.
• Reviewing funding arrangements for building safer, more resilient local roads.
• Increasing funding for local government emergency management capability and capacity.
• Supporting place-based solutions to support building community resilience and social cohesion.

Supporting councils to deliver on federal housing supply targets by funding enabling and community infrastructure.

Further information:

• Federal Election Issues Brief (2025)
• Submission: Consultation on a National Urban Policy for Australia (2024)
• NSW Election Issues Brief (2023)
• Response to Review of the NSW waste levy Issues paper (2024)