MEMBER for Mildura Ali Cupper has written to The Hon Kevin Hogan, Assistant Minister to Local Government, to urge the Federal Government to join the RateGate campaign.
In the letter, Ms Cupper has requested that the Minister alter the way the Commonwealth’s Financial Assistance Grants scheme works.
“Money needs to be delivered to Victoria’s councils based on need, so that our small rural and regional local governments have a fighting chance at financial sustainability,” she said.
“Right now, 30 per cent of the Financial Assistance Grants the Commonwealth delivers to Victoria get dished out based on population density, effectively propping up wealthy metropolitan councils who have stacks of ratepayers to generate revenue from.
“Changing this requirement within the Financial Assistance Grants scheme can ease a lot of financial headaches, and spread the support more evenly.”
Ms Cupper has requested that the Federal Government alter the scheme, so that only 10 per cent of Victoria’s allocation must be allocated based on population.
This could see up to 34 million dollars in funding freed up each year, which could be directed to 13 of the State’s most financially unsustainable councils, including Buloke and Yarriambiack Shire.
“It’s a simple pitch, to provide assistance to the councils most in need,” Ms Cupper said.
“Until rates calculations are given an overhaul, this is the best way to provide immediate and effective assistance to struggling Victorian councils, and by extension, their ratepayers.”
Ms Cupper said making adjustments to the Financial Assistance Grants scheme is the first step in the path to rate parity.
“Once that’s out the way, we can then work collaboratively to reform the way rates are charged state-wide.”
In the meantime, Ms Cupper is continuing to work alongside the VFF for an Equalisation Funding System which would fix the disparity for all rural and regional councils once and for all.
