Council blasts grant funding cut and calls for urgent review

Fraser Coast residents face higher rates or reduced services as a result of a Queensland Local Government Grants Commission decision to strip $4.6 million in funding from Council over the next three financial years.

Cr David Lee said Fraser Coast Regional Council was one of a number of regional Queensland Councils facing massive funding cuts due to a change in the formula used to distribute Financial Assistance Grants.

“Financial Assistance Grants, funded by the Federal Government and then managed by the State Government through an independent commission, are a vital source of income to Council budgets,” he said.

“It’s absolutely ridiculous that the Queensland Local Government Grants Commission is putting the Fraser Coast in the same category as Brisbane, the Gold Coast and Moreton Bay.

“We have among the highest levels of unemployment in the country, more people on age pensions, more people with disabilities and a much lower median weekly household income. We simply don’t have the same ‘capacity to pay’ as our counterparts in city areas.

“As a result of this decision, Fraser Coast Regional Council is set to lose about $4.63 million in grants, which equates to a 5.7 per cent general rates increase over the next three years.”

Cr Lee said with planning underway now for the 2022/23 budget, affected Councils will have to either increase rates or reduce community services if the Grants Commission’s decision is approved.

“We appreciate the Queensland Local Government Grants Commission operates at arms’ length from the State Government, but any recommendation they make needs to be approved by the State Government before then going to the Federal Government for approval,” he said.

“We’re calling for an independent review of the commission’s decision, a full public disclosure of how many and which Councils have been affected, and meaningful engagement with Councils.

“There has been a real lack of transparency in how and why this decision has been made, with seemingly little regard to the impact on Councils’ long-term financial sustainability.”