A new Centre for Policy Development (CPD) report has highlighted the critical need for stronger partnerships between local and state governments, as the growing responsibilities of councils and decline in funding has hampered their ability to deliver for the community.
The portion of tax revenue received by local governments has halved since the 1990s, from 1% to 0.49% in 2026-27, though a motion passed at the ALP Conference on Saturday may be a first step to restoring funding levels. At the same time the remit of councils has expanded: a current federal inquiry into the financial sustainability of local governments has found that cost shifting – where the subtle creep of responsibilities of local councils drives costs up over time – is occurring across everything from health care and child care, to infrastructure maintenance and disaster recovery.
The report, Better Together: Fostering local-state partnerships for healthier communities says that councils, as the closest tier of government to communities, are well positioned to address both local needs and broader national and state priorities. More local government funding is needed, but today’s large state and federal budget deficits mean governments need innovative ways to continue to meet community needs.
Better Together explores how stronger partnerships between local councils and state or federal government can be a cost-effective way to strengthen local leadership and grow local government capability. Delivered well, the services councils provide help communities adapt to climate change, build resilience, give children a healthy start, enhance liveability and so much more – playing a key role in prevention and early intervention and reducing overall costs to government long-term.
Drawing on case studies of successful partnerships in Victoria and South Australia, it identifies four strategies for effective partnerships. These include establishing clear, formalised agreements; building public sector muscle for partnership; designing programs for the community to lead long-term; and centring local knowledge and expertise in the design of initiatives.
CPD Policy Director Clifford Eberly highlighted the critical role of local governments in delivering on shared health and wellbeing priorities.
“As the level of government closest to the community, local councils are best placed to take the lead in improving community health and wellbeing. But right now, councils often lack adequate support to deliver.
“When federal and state governments work together with local councils, communities can thrive. Strong, active local-state partnerships enable councils to deliver quality services to the community, with flow on effects for mental health, community safety, economic participation, and social cohesion.
“We’re seeing what happens when people’s needs are neglected and communities become disaffected.”
Policy Adviser Esther Koh described what this looks like in practice.
“Local governments bring critical on-the-ground understanding of the issues affecting their communities, while state governments can bring public health expertise and statewide networks.
“A good partnership will leverage the strengths of each, and build the knowledge and capability of staff so that certain practices become part of core business. For councils, this reduces reliance on state funding and bolsters the longevity of programs.
“Whether it’s climate resilience or mental health support local councils need sustainable, collaborative support to enable healthier, happier communities.”
MEDIA CONTACT:
Katie Braid
katie.braid@cpd.org.au
0405 177 346
