Federal Govt assistance grant reduced
■ More than $2.5 million of Federal Government financial assistance funds have been allocated to the City of Karratha, nearly a third less than four years ago.
While council acknowledged the funding received through the Financial Assistance Grants program, they advocated for the decision to freeze the indexation of the grants to be reversed.
Previously the grant program, which supports local roads and general-purpose funding, was indexed annually to reflect inflation.
City of Karratha Mayor Peter Long said the funding was a small but important contribution to the council budget, and one that needed to remain in place.
“The Federal Financial Assistance Grants help us to afford small projects throughout the year and while it isn’t the backbone of our budget, it is a funding stream which has been steady and relied upon by councils all over the country,” he said.
“Council believes it is right for the Federal Government to make a contribution to all local governments across the nation and this contribution should reflect the increased cost pressures which we are facing.
“Our grant amount has decreased by around $1 million since the 2011-12 financial year and the freezing of indexation has exacerbated this reduction.”
The Australian Local Government Association and Western Australian Local Government Association have launched a campaign to reverse the freezing of financial assistance grant indexation, which the City of Karratha supports.