The Standing Committee on Regional Development, Infrastructure and Transport has accepted the Albanese Government's referral of an Inquiry into Local Government Sustainability.
This is something the sector has been calling for since the initial Inquiry lapsed in May when the 47thParliament of Australia was dissolved.
This Inquiry will provide another opportunity for all perspectives on issues including worker security, financial sustainability and cost shifting to be heard.
In the last term of Parliament, the Committee heard from more than 280 stakeholders through written submissions and held 16 public hearings.
In February 2025, the Committee published an interim report reflecting the sector's concerns and observations including that:
- The role of local governments has expanded and evolved over time.
- Council funding and ability to raise revenue has deteriorated in the face of rising service delivery obligations.
- Smaller regional councils face different challenges to metropolitan councils on a range of issues.
The Inquiry will now reconvene to assess these observations and more, and provide final recommendations to government. Crucially, the work of the previous Inquiry will be considered by the Standing Committee under the new Terms of Reference.
New or updated submissions are welcome, but those who made submissions to the previous Inquiry can be assured that they will also be considered.
The Terms of Reference for this Inquiry have a sharper focus on the financial sustainability of local governments, including the interactions between levels of governments, funding sources and the impact and effectiveness of that funding.
The Albanese Labor Government is committed to supporting a strong and sustainable local government sector which delivers the crucial infrastructure, services and support local communities depend on, and it looks forward to final recommendations from the Committee.
The Government encourages all interested groups to have their say on these issues by providing a written submission by 3 February 2026.
Quotes attributable to Minister for Regional Development and Local Government, Kristy McBain MP:
"We said we would continue this Inquiry and we are. This is good news for the sector, its workers and the communities who rely on this critical level of government.
"I've spoken to more than 300 mayors and CEOs over the last term of government. They have all been very clear they wanted this inquiry to continue. I am delighted to be able to confirm that today.
"The first Inquiry started in 2024, more than two decades after the last such Parliamentary Inquiry into the sector's financial capacity. This Inquiry will finish that crucial work investigating the financial sustainability of local governments and will provide a final report which the Government looks forward to reviewing.
"I thank the Committee for accepting this referral and continuing the important task of working with stakeholders to understand the pressing issues facing local government."
