Queensland councils seek fair share of funding ahead of Federal Budget
Published on 31 March 2026
Queensland councils are demanding a permanent fix to local government funding shortfalls ahead of the May Federal Budget.
The peak body for Queensland councils says a decades-long funding “black hole” is the biggest single challenge facing councils and the communities they serve.
Local Government Association of Queensland (LGAQ) President Mayor Matt Burnett says three urgent reforms delivered through the May Budget would help put Queensland councils and local communities on a more sustainable financial footing:
- Increasing untied funding to all councils to at least 1 per cent of Commonwealth taxation revenue;
- A replacement for the disappearing Local Roads and Community Infrastructure Program (LRCIP) set to end on 30 June 2026;
- Increasing housing investment to tackle chronic overcrowding in First Nations communities.
“We welcome the Federal Government’s focus on tax reform in the upcoming budget, but this has to include reforms to local government funding,” Mayor Burnett said.
“Local government is the closest level of government to the people, but the current funding model created in the 1970s is now obsolete, like the black and white TVs of that era.
“Councils are being asked to do the impossible – roads, rates and rubbish but also infrastructure, childcare, aged care and other services usually delivered by other levels of government and the private sector.
“And they’re being asked to do this with just three per cent of Australia’s overall taxation revenue, in a period of inflationary pressures.
“Councils can’t indefinitely keep delivering the services their communities expect without a federal government committed to a permanent council funding solution.
“Queensland councils’ calls for a fair funding share now comes at a time when local governments are staring down the barrel of even more financial stress from escalating fuel costs and availability constraints, impacting on their essential service delivery for communities.
“It’s positive that out of National Cabinet the fuel excise will be halved for three months and a pause on the heavy vehicle road user charge, but the LGAQ will continue to fight for councils, as we’re doing in our meetings with the federal Government in Canberra this week.”
LGAQ CEO Alison 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 these communities want solutions, which can only be delivered with an increase in federal funding for councils.
“Community liveability will continue to be impacted I throughout Queensland unless the Treasurer delivers for councils in the Federal Budget.”
Ms Smith said the disappearance of the Local Roads and Community Infrastructure Program (LRCIP) on June 30 would mean fewer local jobs and local projects to enhance community liveability, without a continued Federal Government funding commitment.
"We are talking about important local projects like safe footpaths, cycleways connecting communities, upgrades to parks and places of community connection,” she said.
“And we’re not asking for a new program, this is an existing, and highly successful funding stream that supports councils to provide essential community infrastructure Queenslanders deserve – we’re just asking for its continuation.”