LAST month, local government welcomed the interim report from the Federal Parliament’s inquiry into local government sustainability, which confirmed what many of us in regional councils have known for years, our current funding model is broken and needs urgent reform.
Australia’s 537 local governments have been asked to deliver more with less for too long, and the inquiry, after receiving more than 280 submissions, acknowledged that we are at a breaking point. 
Our local Federal MP Tony Pasin was part of the committee overseeing this inquiry, providing the opportunity for a direct voice for our region in these critical discussions. 
While I look forward to the final report and its recommendations, one thing is clear, we don’t just need a reshuffling of the limited funding currently available, we need a commitment from the Federal Government to increased fair and sustainable funding for councils, particularly in regional areas.
One of the biggest barriers to fair council funding is the outdated 30 per cent per-capita model for Financial Assistance Grants (FA Grants). 
This system disproportionately benefits metropolitan councils, despite the fact that regional councils manage vast road networks, in Mid Murray’s case, a distance greater than traveling from Adelaide to Melbourne and then on to Perth, while operating with limited rate bases and significantly higher service-delivery costs.
To push for change, I called a special meeting of Mid Murray Council, where council resolved to bring a motion to the Local Government Association of South Australia’s Ordinary General Meeting to advocate for the removal of this inequitable funding model. 
If we want regional communities to thrive, not just survive, the Federal Government must commit to genuine funding reform that distributes resources based on the needs and responsibilities of councils, not just population size. 
This is a critical issue, and I look forward to the outcome of this motion and the robust debate it will generate.
The latest Essential Services Commission of South Australia (ESCOSA) advice to Local Government for the 2024/25 period has just been released, and it paints a stark picture of local government sustainability. 
Of the 17 councils assessed this year, only six were found to be currently “sustainable”, five were “mostly sustainable”, and six were deemed “potentially unsustainable”, “marginally unsustainable”, or “unsustainable”. 
More concerning, when looking at the same 17 councils’ financial sustainability forecasts over the next decade, ESCOSA predicts that less than 24 per cent of those assessed are likely to remain “sustainable”. Unsurprisingly, most of the struggling councils are in regional areas.
I have said it before, something is seriously wrong here. Regional councils are the backbone of their communities, delivering essential infrastructure, services, and support, often filling gaps left by other levels of government. 
In Mid Murray’s case, an example includes managing a network of standpipes at a financial loss, despite water being a State Government responsibility. Yet, we are being left behind by a funding system that is fundamentally flawed and fails to recognise the unique challenges faced by regional councils.
With a Federal election on the horizon, now is the time for all of us, councils, communities, and regional leaders, to stand together and demand change. 
We need equitable funding that recognises the unique challenges of regional councils and ensures long-term financial sustainability. 
Regional communities cannot continue to bear the burden of an inequitable funding model that forces councils to increase rates beyond CPI, remove services, and sell community assets just to stay afloat. 
It’s time for real reform, one that provides councils with the resources they need to support their communities without unfair financial pressure on ratepayers.
This is not just a fight for local government, it’s a fight for every resident, every business, and every family in our region. 
Our communities deserve better, and we will keep pushing for the reforms needed to secure a sustainable future.