A survey of 458 councils in Australia has shown a notable improvement in the condition of local government infrastructure. 

According to the National State of the Assets (NSOA) report for 2024, launched by Australian Local Government Association (ALGA) president Linda Scott this week, 8 per cent of local government infrastructure is now in need of intervention and repair. 

This is a two percentage point improvement from the figures reported in 2021.

The survey is the sixth of its kind and provides an analysis of the condition, function, and capacity of local council infrastructure. It gathers data from eight asset categories, covering 85 per cent of all local councils nationwide.

In her foreword to the report, Cr Scott attributed the improvement in asset conditions to an increase in federal funding over the past three years. 

“The improvement [of recorded local council assets in ‘poor condition’] can be attributed to a significant increase in federal funding for local community infrastructure and services from both Coalition and Labor governments over the past three years,” she said. 

“This increased funding has been welcomed by councils and communities and is delivering tangible benefits across the country.”

The report revealed that between 65 per cent and 71 per cent of local government infrastructure assets are in good condition, function, and capacity. 

However, the cost to replace assets in poor to very poor condition is estimated to be between $50 billion and $55 billion. 

Additionally, the replacement cost for assets in fair condition for function and capacity is estimated to be between $143 billion and $179 billion.

In a recent address to the National Press Club, Cr Scott, a Labor councillor on the City of Sydney Council, elaborated on the expanding role of local governments in Australia. 

She said that local governments are now responsible for a broader range of services, including essential infrastructure and services for communities, and sometimes even “services of last resort” for the most vulnerable.

“[We are responsible for] libraries, parks, pools, childcare, roads and - in a surprise to many city dwellers in Australia - also airports, cemeteries, water utilities, health services and so much more,” Cr Scott said. 

“Australia’s local governments employ more than 200,000 people across more than 400 occupations. We manage assets valued at $640 billion, with an annual operating spend exceeding $38 billion. We manage one-third of Australia’s public infrastructure, and we’re responsible for 77 per cent of the national road network.”

Despite the increasing responsibilities, Cr Scott highlighted that local councils receive only 3 per cent of the nation's taxes. 

She also pointed out a decline in federal financial assistance grants for local councils over the past three decades, from 1 per cent of Commonwealth taxation revenue to 0.5 per cent today, calling it unsustainable for maintaining essential services and infrastructure.

“Introduced [by the Whitlam government] in 1974, [the federal financial assistance] grants gave local government, for the first time, the financial security that made it possible for us to invest with confidence in vital local infrastructure and services,” Cr Scott said. 

“Over the past three decades, the all-important … grants for local councils have slipped from just 1 per cent of Commonwealth taxation revenue to 0.5 per cent today. It is not sustainable for the services and the infrastructure that Australians rely on us to deliver for them.”

Cr Scott stressed the importance of continued investment in local communities to avoid passing the costs of infrastructure renewal onto future generations.

“It is vital that we continue to invest in our communities, so the costs of infrastructure renewal aren’t passed to future generations,” she said.