FUNDS FIGHT: Noosa Council wants a fairer share of the taxation revenue to ease financial pressures.
FUNDS FIGHT: Noosa Council wants a fairer share of the taxation revenue to ease financial pressures. Contributed

Feds 'must end a $1.83m gouge' of Noosa works

NOOSA looks certain to join a local government push in the lead-up to the federal election to pressure political parties to restore financial support for councils battling to keep a check on rates increases.

CEO Brett de Chastel this Thursday will seek Noosa Council backing for a financial assistance grant lift of $1.83million a year, after revealing the funding challenge was one of the issues keeping him awake at night.

"For every $100 of taxation revenue collected in Australia, the Commonwealth collects $83 and the combined states and territories collect $14,” the CEO said.

"There are 537 councils across Australia who collectively receive $3 of the total Australian taxation revenue.

"Local governments across Australia are calling on the Commonwealth to commit to increasing the financial assistance grants paid to local government to the equivalent of one per cent of the total Commonwealth taxation revenue.”

He said over the past 20 years the percentage of taxation funding has fallen from 1 per cent to .55 per cent of total Commonwealth taxation.

"As an industry, local government across Australia is going to struggle while this funding exists,” Mr de Chastel said.

"It's just unsustainable.

"The idea is to pressure federal candidates in the upcoming federal election to obtain commitments.

"Compared to most other local governments, our council is in a strong financial position.

"However, having a more equitable distribution of federal funding to local government would result in an increase of grant revenue for councils that could be used to provide services at the local level.”

Cr Joe Jurisevic said the impact from that decrease in funding over the years is "3.5 per cent potentially on our ratepayers”.

"So it would be nice to get that back and not have to put that impost on the ratepayers,” the councillor said.

The council's current annual financial assistance grant allocation is:

General purpose grant - $1,137,376

Identified road component - $1,090,606

Total: $2,236,982

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