Financial black hole looms for Queensland councils as funding fades
Published on 14 April 2026
Financial black hole looms for Queensland councils amid "disappearing" road and community infrastructure funding
Queensland councils are staring into a financial black hole unless the Federal Government continues to invest in critical community infrastructure across Queensland, with the Local Roads and Community Infrastructure Program (LRCIP) set to end on 30 June.
Peak council body the Local Government Association of Queensland (LGAQ), which represents Queensland’s 77 local councils, is calling on the Federal Treasurer to use his May Budget to continue community infrastructure funding for councils.
The LGAQ says councils will go backwards when the LRCIP ends on 30 June unless the program that is providing critical financial support to councils is extended.
Exclusive figures analysed by the LGAQ show that every Queenslander has benefitted from the program to an average $150 each, but that is now under threat.
“This program has been used to build roads, sporting grounds and other vital community facilities, and it’s our smallest communities who stand to lose most if funding isn't continued,” LGAQ President Mayor Matt Burnett said.
“There are more than just roads and community facilities at stake here – this program is investing in local infrastructure which supports good, secure jobs and community wellbeing and liveability in countless communities throughout Queensland.
“People living in regional Queensland should be able to access the same employment, infrastructure and service opportunities as those living in the cities.
“Councils can’t afford to see this program funding disappear – they need a Federal Government that’s willing to support the local economies to build vital infrastructure.”
LGAQ CEO Alison Smith warned that the disappearance of the $500 million a year allocated nationally to the Local Roads and Community Infrastructure Program (LRCIP) on 30 June, without a replacement, would be a tough blow to regional and urban Queensland communities alike.
“Every community fights hard to attract and retain jobs and investment, and this becomes much harder if programs like this simply vanish overnight,” she said.
“We are talking really about locally important projects like safe footpaths and cycleways connecting communities, as well as upgrades to parks and places of important community connection.
“And on top of this there are the jobs that come with these projects, and the widespread benefits they bring to local economies.
“The LRCIP funding allocation provided to Queensland councils is estimated to contribute approximately $668 million to Queensland’s economy over the course of the program in total, including $206.9 million directly.
“That supports almost 4,000 full-time equivalent jobs across Queensland, including almost 1,300 direct jobs.”
Mayor Burnett said the LGAQ is also calling on the Federal Government to use the May Budget to help improve the financial sustainability of Queensland councils by:
- Increasing untied Financial Assistance Grant funding to all councils to at least 1 per cent of Commonwealth taxation revenue;
- Increasing housing investment to tackle chronic overcrowding in First Nations communities.
“We welcome the Albanese government’s focus on tax reform in the upcoming Federal Budget, but this has to include reforms to local government funding,” Mayor Burnett said.
Ms Smith said independent analysis of the Federal Government’s investment in councils highlights a projected downward trend in the level of local community investment Australians can expect to flow from their federal taxes.
“Local communities shouldn’t be deprived of vital services and infrastructure because of a broken Federal funding model,” Ms Smith said.
“Residents in all Queensland communities want solutions, and this requires a significant increase in Federal funding for councils.”
Cr Teresa Millwood, Mayor of Cassowary Coast Regional Council
“Federal funding through the LRCIP has given councils like ours the flexibility to deliver not only essential infrastructure – such as safe roads and footpaths – but also community spaces that help people experience and enjoy their natural surroundings.
“Projects like beach pathways, nature play areas and pump tracks have delivered real benefits for our community. Without a replacement program, the loss of this funding leaves a significant gap for both council and our community.”
Cr Teresa Harding, Mayor of Ipswich City Council
“The Local Roads and Community Infrastructure Program has delivered significant community benefits to our community, from upgraded green spaces, new clubhouses for sporting facilities – as well on projects which save costs and emissions like a rooftop solar system installed on our central library.
“Without a replacement for this vital program, and with councils continuing to receive less than 3 cents in every $1 of taxation revenue, our resources will continue to be stretched to unsustainable levels. Councils are paying for more services and infrastructure than ever before – including pitching in for Federal Government responsibilities.
“Our communities deserve a fair share of Federal funding as they continue to grow.”
Cr Andrew Smith, Mayor of Western Downs Regional Council
“The Local Roads and Community Infrastructure Program has injected significant value into our region, supporting essential upgrades while creating local jobs and driving economic activity. The disappearance of this funding now threatens the delivery of vital local road and community infrastructure projects that residents rely on every day. These investments are fundamental to maintaining safe, connected and liveable communities, and without them our growing region risks falling behind the expectations and needs of the people who live and work here.”
Cr Wendy Taylor, Mayor of Maranoa Regional Council
“The Local Roads and Community Infrastructure Program has been a vital funding source for Maranoa Regional Council, enabling the delivery of 43 projects across its four phases. These projects have provided essential upgrades to our road network, improved community facilities, and supported economic growth in our region.
“Without the program, many of these projects would not have been delivered or would have come at the expense of other priority infrastructure programs. The program has allowed Council to value-add to existing projects, ensuring that infrastructure upgrades are delivered at a higher standard, with greater long-term benefits to the community.
“With the program set to wind up in 2026, there is an urgent need for a permanent, direct Federal funding model that enables councils to continue delivering the infrastructure our communities rely on. Without this certainty, regional projects will face delays, funding shortfalls and reduced capacity to meet local infrastructure needs.”
Cr Angela Toppin, Mayor of Mareeba Shire Council
“The LRCI Program is a critically important funding source for Mareeba Shire, it enables us to deliver essential projects for our community that otherwise we simply could not afford to do.
“These are not just nice to have things, we have used this funding to deliver important community assets such as road and culvert upgrades, ablution block renewals, water main replacements and footpath renewals.
“Maintaining this program is essential for our community.”
Cr Tony Rayner, Mayor of Longreach Regional Council
“The Local Roads and Community Infrastructure Program has been a game-changer for communities like ours. Thanks to this funding, we’ve been able to deliver vital projects that otherwise wouldn’t have been possible – creating jobs, supporting local businesses and strengthening our region’s liveability.
“Without this kind of investment, remote councils like ours will struggle to maintain and upgrade their social infrastructure. This isn’t just about roads and facilities – it’s about sustaining our communities and keeping them liveable, connected and economically resilient.
“The Ilfracombe Multi-Purpose Courts are a prime example of what LRCI funding has made possible. This project provided work for seven different contractors, and has given our community a high-quality, fully shaded facility for tennis, basketball and netball. Without LRCI, delivering infrastructure like this in rural and remote communities would be incredibly difficult, if not impossible.
“Councils know the needs of their communities better than anyone, and direct, allocative funding ensures that vital projects – like the Ilfracombe Multi-Purpose Courts – continue to be delivered where they’re needed most.
“Without this kind of ongoing investment, regional communities will face stalled projects, lost jobs and deteriorating infrastructure. This isn’t just good policy – it’s essential for the future of regional Australia.”
Cr Jack Bawden, Mayor of Carpentaria Shire Council
“For a start, the funding is essentially untied, it’s flexible and unmatched funding. That makes it easy for little shires like ours. Like all funding, it drives projects and employment – not to mention what it actually provides, which is critical infrastructure.”
Cr Barry Hughes, Mayor of Etheridge Shire Council
“The LRCIP funding program has assisted Etheridge Shire immensely. The scope of LRCIP funded projects that have benefited communities has been transitional and generational, assisting growth, infrastructure management, employment opportunities and helping meet community expectations.”
Cr Robert Poipoi, Mayor of Northern Peninsula Area Regional Council
“As a result of this funding program, we’ve constructed shared cycling and pedestrian infrastructure that connects our community of Injinoo to Umagico, and now onward to Bamaga. It provides safe pathways to school and work for our residents, as well as health and fitness opportunities for the community. Projects like this show how vital this funding is to councils like ours.”
Cr Bruce Simpson, Mayor of Cherbourg Aboriginal Shire Council
“The Local Roads and Community Infrastructure Program provides vital funding that enhances the liveability of Cherbourg for our residents and visitors. It lets us fund the projects that will be of most benefit to the needs of our community. Small projects can make a big difference to our kids and our families – they create jobs, opportunity and growth. Intentional investment is needed for our smaller shires.”
Cr Peter Flannery, Mayor of the City of Moreton Bay
“It is implausible that the Federal Government is looking to close Local Roads and Community Infrastructure Program.
“This will have an immediate and serious impact on local Queensland communities who are crying out for vital local road and community infrastructure.
“It is not sustainable for our rapidly growing City of Moreton Bay to continue to provide everyday services for our community, while at the same time fully fund important infrastructure projects as we grow.
“Surely, the great success of the program shows the impact this funding has made, both in terms of the calibre of projects themselves but also in creating local jobs and lasting community benefits.
“In City of Moreton Bay alone, we have had almost 90 projects supported by the Local Roads and Community Infrastructure Program, including critical projects such as the Oakey Flat Road rehabilitation at Narangba, Gordon Road and Ferny Way Intersection Upgrade, Ferny Hills and the Deception Bay Community Hall building upgrade.
“Not only does this funding empower local government, who know their priority projects inside out, but the allocative nature of the funding also means councils could bring forward projects and deliver this key infrastructure quickly.
“City of Moreton Bay strongly believes all levels of government should be working collaboratively to deliver services and infrastructure.
“However it is a fact that out of all the levels of government, it is local government that delivers the best value for money in progressing infrastructure projects and seeing them delivered on the ground.
“The impact of such a successful program ending will spell disaster for local councils and their communities.”
Cr Ben Hall, Mayor of Quilpie Shire Council
“LRCIP helps deliver projects like our walking path to one of our iconic landscapes. People can get out of town, escape – and work on their wellbeing and their wellness."
“Without this funding – these sort of projects come to a halt. This immersion in this beautiful landscape and the availability for people to access it and just live a more healthy, well rounded life and accessing those health benefits of unwinding would be lost."
Cr Adam Belot, Mayor of Livingstone Shire Council
“Livingstone Shire is one of Queensland’s fastest growing regions, and with that growth comes real pressure on our road network. Emerging communities like Hidden Valley and Taroombal here on the Capricorn Coast are helping address housing demand, but they are already contributing to congestion on key State routes such as Tanby Road and the Yeppoon–Rockhampton Road.
“Continued investment through programs like Local Roads and Community Infrastructure is essential to ensure councils can deliver the infrastructure needed to support growing communities and keep people moving.”
Cr Ronaldo Guivarra, Mayor of Mapoon Aboriginal Shire Council
“Mapoon is located on the western side of the cape and is heavily reliant on the Queensland road network.
When there are floods or road outages we effectively turn into an island which drives up the cost of living, doing business and affects local health. LRCIP is a program which invests in the critical community infrastructure we need to remain connected – but it also supports projects that keep our residents safe and spaces liveable, like safe school drop zones for our kids and, outdoor BBQ’s, outdoor exercise stations. It has funded infrastructure to protect the resting place of our elders from unwanted wildlife.
Without this funding – these very important projects become much harder to deliver in remote councils like ours.”
For more information, please contact:
Martin Philip, Media Advisor
Phone: 07 3155 4003
Local Government Association of Queensland