General News
28 July, 2026
CMA Welcomes 'Federation Compact'
A newly announced Federation Compact is being welcomed by the Country Mayors Association of NSW
The Country Mayors Association of NSW (CMA) board and its 89 remote, rural and regional member councils have welcomed the Labor national conference’s support for the 'Federation Compact' which is not only promising to increase core funding for local government but also addresses road funding, training and capacity building for councils.
“Financial sustainability is the number one issue facing our members. The Federation Compact which we understand was unanimously supported by delegates at the conference is very welcome news. The compact goes to the heart of the problems that almost every council in Australia faces; financial sustainability, skills shortages, road maintenance and the capacity to deliver the services our communities need,“ said CMA chair, Rick Firman OAM.
The announcement of the Federation Compact, is the culmination of years of lobbying by the local government sector to address successive federal governments’ falling financial contribution to local government through the Financial Assistance Grants program. The grant is untied funding which allows councils to deliver the infrastructure and services their communities need and demand. The grant has fallen from one per cent of total tax revenue in the mid-1990s to 0.49 per cent in the most recent budget.
“While we appreciate there is more work to do, to tease out the fine details of the operation of the compact, the commitment to ongoing annual increases for the Financial Assistance Grant is great news. The CMA along with our friends at LGNSW, ALGA, the USU as well as other state and territory associations and councils across Australia have worked hard to encourage federal governments to commit to sustainable funding for local government. The CMAs’ 'Invest in Us Campaign' has been the most recent way we have tried to ensure the Commonwealth recognises the importance of councils in building and sustaining the economic, social, environmental wellbeing of Australian communities,“ mayor Firman said.
“We thank the prime minister for supporting this great initiative and recognise the work that now needs to be done to turn the Labor Party’s overwhelming support for the Federation Compact into implemented government policy as quickly as possible,” mayor Firman said.
"On behalf of the CMA board, members and staff I would like to acknowledge the tireless work of Mr Graeme Kelly, general secretary of the USU for his intense lobbying work over several years to raise awareness of the perilous nature of council finances, especially in remote, rural and regional Australia and the need to increase the Financial Assistance Grants. The work of mayor Matt Burnett, president of ALGA and mayor Darcy Byrne at LGNSW as well as regional organisations of councils, joint organisations and council alliances should also be acknowledged as we know that they have raised the issue at every opportunity, as has the CMA,” mayor Firman said.
