Better Together: Fostering local-state partnerships for healthier communities

Overview

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Better Together is a report from the Centre for Policy Development that looks at how state and federal governments can partner with local councils to better deliver some of the critical services communities rely on like disaster recovery, child care, aged care, mental health support and more.

Local councils play a vital role in Australia’s social fabric. They provide active community hubs for learning and connection, deliver essential social and health services, and maintain much of the infrastructure that underpins our daily life.

Council funding has declined over three decades from 1% of tax revenue in the 1990s to 0.49% in 2026-27. At the same time, the expectations of local government has expanded, far beyond “roads, rates and rubbish”. As the level of government closest to the community, it makes sense that they are active leaders in managing the wellbeing of people and the environment. But right now, they 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 for the community, while also helping meet national and state priorities for health and wellbeing. 

Download Better Together

Better Together is a report from the Centre for Policy Development that looks at ways local councils can overcome chronic under-resourcing by partnering with state and federal governments to provide some of the critical services communities rely on.

Why does this matter

Council budgets are under immense pressure. This is especially true for regional councils where they are already the provider of last resort for many services like child care and health care, straining already stretched resources. 

When people’s needs are neglected, disaffection becomes the norm. Trust in institutions and democracy declines, and social cohesion frays. Over time, this ends up costing governments more.

We need a focus on how to grow the skills, resources and mindsets needed for all levels of government to work in genuine partnership with each other and with communities. 

What does the report recommend?

To respond to these pressures and risks, levels of government alongside the broader public health ecosystem need to work better together. To achieve this, we must rethink how we collaborate. 

Drawing on case studies of successful partnerships in Victoria and South Australia, Better Together identifies four strategies for effective partnerships: 

  • Establish clear, formal partnership agreements: Outlining mandates in legislation isn’t enough, we need ongoing dialogue around priorities; 
  • Design for long-term sustainability: Provide flexible funding, investments in learning and evaluation, and transparency on when and how programs and funding will be wrapped up; and 
  • Prioritise capability-building: Building public sector muscle for partnership is a two-way street – local governments can bring critical on-the-ground understanding of the issues affecting their communities, while state governments can bring public health expertise and statewide networks and data
  • Centre local knowledge and expertise in the design of initiatives: Communities often know best about what they need and about what will work in their community – giving them greater ownership and control gets better results. 

As the backbone of our communities, local councils need sustainable, collaborative support to provide for the growing needs of their residents. When local governments are properly equipped to thrive, the entire community benefits.

Case study – SA’s Wellbeing Hubs and Regional Preventive Health Partnerships

In South Australia, the Regional Preventive Health Partnerships and nine Wellbeing Hubs are funded and run by Preventive Health SA to support the physical, social and mental wellbeing of a priority population group within the local community. Preventive Health SA provides funding, data, public health expertise, evaluation frameworks and connections with other hubs while councils implement the hubs in communities. Examples of co-designed activities include mental health support sessions, multicultural sports carnivals, community nutrition education and youth social connection programs.

About the authors

Esther Koh

Esther Koh is policy adviser for the Just Transition and Wellbeing Government focus areas at the Centre for Policy Development

Maria Cardoso

Maria Cardoso is a Program Officer at the Centre for Policy Development.

Cliff Eberly

Cliff Eberly is policy director for the wellbeing government focus area at the Centre for Policy Development

Ryan Martin

Ryan is Policy Adviser for the social services and wellbeing focus areas at the Centre for Policy Development

Nicole Ducker

Nicole is a Senior Policy Adviser working in the Wellbeing Government focus area at the Centre for Policy Development.

In the media

The Centre for Policy Development says giving councils more money is important, but argues it’s also vital, as all levels of government come under budget pressure, to consider how that money is invested.
A new 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.

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