URGENT UPDATE: The Coalition has launched a fierce attack on the Albanese Labor government, criticizing its lack of urgency in addressing the financial sustainability of Australia’s 537 local governments. In a striking move, the government has quietly reinstated a sustainability inquiry—an action the Coalition has been demanding since early June.
During a recent address at the Australian Local Government Association national conference, Shadow Minister for Local Government Dr. Anne Webster revealed her immediate call for the Albanese government to revive the stalled Standing Committee on Regional Development, Infrastructure and Transport inquiry. “It’s now been 19 months since Minister Catherine King labeled local government sustainability issues as ‘pressing’,” Dr. Webster stated. “Yet, the inquiry has only just resumed, with submissions due to close in February 2026.”
The interim report from the inquiry, released in February 2025, contained zero recommendations, raising concerns that the Albanese Government will not be able to provide any financial relief for councils in the upcoming 2026/7 budget, or even the following year. The Coalition argues that this slow pace is detrimental to local councils that rely on timely funding for vital infrastructure improvements.
The Coalition-era Local Roads and Community Infrastructure (LRCI) program has been incredibly beneficial for councils, offering unmatched funding to address infrastructure needs. However, this program is set to expire on June 30, 2026. “Labor is unwilling to support local governments in fixing potholes, enhancing road safety, and upgrading community infrastructure,” Dr. Webster asserted.
In a controversial proposal, the Labor government is also considering slashing default regional speed limits from 100 kilometers per hour to as low as 70 kilometers per hour. Critics argue this will hinder regional productivity, increase driver fatigue, and complicate daily life for residents in rural areas.
The previous sustainability inquiry received 287 submissions and conducted public hearings across various locations including West Perth, Launceston, Wallan, Cairns, and Beaudesert. This extensive input highlighted the urgency of addressing local government challenges, yet the new timeline for submissions indicates little likelihood of meaningful financial support in the near future.
As tensions rise, the Coalition demands immediate action to ensure local governments can thrive and deliver essential services to their communities. The implications of these developments are significant, impacting not only local councils but also the broader Australian populace reliant on their infrastructure.
WHAT’S NEXT: With submissions set to close in February 2026, all eyes will be on the Albanese government to see if they can respond effectively to the pressing needs of local councils before the next budget cycle. The urgency of this situation cannot be overstated—local communities are counting on immediate government action.
