Queensland councils have benefited from significant levels of state funding and undergone major reforms to ensure they continue to deliver more efficient, effective and timely services for their residents.

Since 1998 the Queensland Government has allocated more than $4.1 billion to councils to offset the cost of priority infrastructure and capital works.

In 2006, the state committed more than $700 million over five years to deliver major infrastructure across Queensland. In the first three years of this commitment, more than $869 million was approved – exceeding the original commitment and helping deliver important community assets to benefit Queensland communities for years to come.

While this investment program nears completion and a new era in local government emerges, the Queensland Government will continue to provide funding for local governments to ensure important infrastructure is completed for the long-term benefit of communities.

Projects funded

Projects funded range from those addressing environmental issues, such as waste disposal, stormwater and drainage and erosion, to projects that provide economic or social benefits to the regions, such as town centre redevelopments, art galleries or event venues.

The largest portion of funding has been provided to assist councils with projects relating to water, sewerage and effluent reuse infrastructure across the state. For example, the Murrumba Downs waste water treatment plant, the Townsville and Thuringowa Water Supply Upgrade and the Cloncurry water efficiency services.

State funding has also been committed to council water and sewage projects to support communities with populations less than 5,000.

The Queensland Government remains committed to supporting local communities and their local governments through a range of funding programs.

Funding commitments include:

Natural Disaster Relief and Recovery Arrangements

The Natural Disaster Relief and Recovery Arrangements program is a joint Queensland and Commonwealth Government program that provides financial assistance to councils following natural disaster events. A total of $188.5 million is budgeted for 2010-11 to ensure councils impacted by natural disasters are able to replace vital public assets.

Commonwealth financial assistance grants

Under the Local Government Financial Assistance Act 1986, local governments receive grants from the Commonwealth Government that can be used for any purpose the local government chooses.

These general purpose grants, along with roads grants, totalling approximately $309 million to Queensland councils in 2010-11, are distributed on the recommendation of the Queensland Local Government Grants Commission.

Funding for Indigenous Councils

The State’s 16 Indigenous Councils receive special grant funding. During 2010-11 they will receive:

• $32.3 million - State Government Financial Assistance Program
• $27.0 million - Indigenous State Infrastructure Program
• $14.5 million - Major Infrastructure Program.

The Financial Assistance Program is provided to Indigenous Councils to offset the cost of delivering local government services such as administration, public order and safety, waste management, recreation facilities and public amenities, town planning, roads and transport, and essential services including water and sewerage, gas and drainage.

Additionally, Indigenous Councils receive funding through the Indigenous State Infrastructure Program and the Major Infrastructure Program. These programs aim at improving environmental health infrastructure.

Local Government Grants and Subsidies

The state government has committed $45 million per year under the new Local Government Grants and Subsidies Program, due to commence in July 2011. This program will provide consistency and value for the state’s investment in local government by targeting those councils with demonstrated limited capacity to fund priority projects without subsidy assistance.

Further information

For further information, contact the department.