A Riverland council says South Australian local governments are being left in the dark as the Federal Government continues to underfund critical local infrastructure and services.

The continued funding overlook comes at a time when cost-of-living pressures and the rising cost of providing services are hitting regional communities harder than ever.

Despite repeated pleas for support, Financial Assistance Grants remain stagnant at just half a per cent of national tax revenue – far below the 1 per cent councils were receiving 30 years ago.

This persistent shortfall is placing mounting pressure on local governments, which are now grappling with inflation, rising service delivery and building costs, and growing expectations from residents.

Renmark Paringa Council is a clear example of this growing crisis, now facing a deficit budget as inadequate federal funding pushes an increasing financial burden onto local ratepayers.

The 2022/23 flood has also been a significant factor in rising financial pressures, with Renmark Paringa Council still undertaking flood recovery projects.

While council received support via disaster relief funding following the 2022/23 flood, it fell “well short” of what was needed to fully support recovery efforts.

“The financial impact of the flood is still being felt by Renmark Paringa Council, and while it was substantial help to receive assistance for our recovery projects it has still meant significant costs have fallen to council and our ratepayers,” Renmark Paringa Mayor Peter Hunter said.

“SA councils have continuously missed out on the appropriate level of funding to be able to run our day-to-day operations and provide services to our community.

“We are asking to receive an increased percentage of the national tax revenue to be able to continue delivering what our community needs and deserves.”

On top of flood recovery costs, Renmark Paringa Council is being hit with rapidly rising expenses, including construction materials, contractor fees, insurance and utilities.

Mr Hunter said these increasing costs were being felt across every part of council operations.

“Just like households, councils are feeling the pinch,” he said.

“We’re paying more for everything we do, whether it’s fixing roads, managing waste, or maintaining community facilities.

“But unlike households, local government has to contend with the cost shifting of services from other levels of government, with no extra funding to support them.

“We’ve been advocating for a fairer share, but until that happens, our ratepayers are the ones who unfortunately end up footing the bill.”

The Australian Local Government Association has lobbied for increased support on behalf of the 537 local governments Australia wide, outlining where the funding is most needed.

These areas include $1.1bn per year for enabling infrastructure to unlock housing supply, $500m per year for community infrastructure, $600m per year for safer local roads, $900m per year for increased local government emergency management capability and capacity, and $400m per year for climate adaptation.

A broader regional issue for local government

Renmark Paringa Council is accompanied in its struggles.

Neighbouring councils are also feeling the pinch, with Mid Murray Council also strongly advocating for more federal support.

Without an urgent increase in federal support, Renmark Paringa and other Riverland councils face the tough choice of either increasing rates, or cutting back on essential services.

The South Australian Local Government Association has also called on the Federal Government to provide appropriate funding for local governments.

LGA president, and Mitcham Mayor, Heather Holmes-Ross said South Australian councils collectively manage $28bn in community assets, yet the share of federal funding the sector receives has been cut in half over the years.

“That means local roads, parks, natural disaster preparedness and community infrastructure are all at risk,” she said.

“Our councils need fair funding to keep delivering the services people rely on every day.

“We know every dollar invested locally goes further. When councils are properly funded, they are better placed to build stronger communities, create local jobs and make sure families, businesses and industries have the infrastructure and resources they need.

“Right now, South Australia is getting shortchanged – councils manage 75 per cent of the roads in our state, yet the federal funding local government receives to support this significant upkeep doesn’t stack up when compared to other states.”

Dr Holmes-Ross said “we’re calling on our national leaders to back local, fund local, and help build a stronger future for South Australia”.

“Our communities can’t afford more delays, more cuts, or more short-term thinking,” she said.

“Our message is simple – invest in councils, and you invest in communities. If we want safer roads, better parks and playgrounds, more action on housing and stronger local economies, we need Canberra to step up.”

This article appeared in Murray Pioneer, 2 April 2025.