The Federal Government has confirmed it will set the question of constitutional recognition of local government to the people on September 14, the same date as the Federal election.

“We are asking the Australian people to support a small but important change to our Constitution so that the existing practice of Federal Government support for local communities is formally recognised in our Constitution,” Prime Minister Julia Gillard said.

The Constitution, which was drafted over 100 years ago, makes no reference to the local government bodies in Australia, which provides key services ranging from childcare to roads.

“This is about saying ‘yes’ to retaining important community benefits. This is about saying ‘yes’ to our communities,” Ms Gillard said.

Ms Gillard was at pains to stress that the recognition of local government in the Constitution would not detract from the roles and responsibilities of the States.

“The change will not diminish the role of the States with regard to the administration of local government. Recognition in the Constitution does not alter the fact that local governments are created by and are accountable to State Governments,” Ms Gillard said.

Australian Local Government Association (ALGA) President Felicity-ann Lewis has declared that the national campaign to convince Australians to vote 'yes' to include local government in the Constitution to secure funding for local services and infrastructure will intensify now that the Federal Government has given its commitment to a September 2013 referendum.

"The Government's decision to support holding a referendum at the time of the September federal election is the signal we have been waiting for to carry forward our fight to protect federal funding for councils," Mayor Lewis said.

"We now need bipartisan support and I call on the Opposition, and all political parties, to support the referendum proposal and referendum funding legislation, when it is debated in Parliament next week. 

Ms Gillard said that draft legislation will be released shortly.