$220 million Boost to Community Infrastructure Program
On 25 June 2009, the Prime Minister, the Hon Kevin Rudd MP announced additional funding of $220 million for the Community Infrastructure Program would be made available in 2009-10.
This funding will assist councils to build and modernise community facilities, including town halls, libraries, community centres, sports grounds and environmental infrastructure.
It takes the Australian Government’s total investment in the Community Infrastructure Program to more than $1 billion since November 2008.
This investment is intended to support local jobs during the global economic recession and provide long-term benefits to communities by renewing and upgrading local infrastructure.
How does the additional $220 million for Community Infrastructure Program work?
The $220 million injection into the Community Infrastructure Program will be delivered as follows:
- $100 million is being allocated to all 565 of Australia’s councils on a formula basis
(see below); and - $120 million for larger Strategic Projects will be available on a competitive basis.
The Government will commence the next round of community infrastructure funding at the end of 2009.
This is to enable councils to complete and properly acquit their current projects under the original $250 million allocated component of the Community Infrastructure Program.
Guidelines for both components of the new Community Infrastructure Program funding will be released later in 2009.
How does the $100 million allocation to councils work?
- All councils will receive a base grant of $30,000.
- The 105 councils classified as urban fringe or urban regional according to the Australian Classification of Local Government Code and who have at least 30,000 residents will receive an additional growth component of $150,000.
- All councils with at least 5,000 residents will share in the distribution of the remaining funds in proportion to their 2008-09 general purpose financial assistance grant.
- The Australian Capital Territory will receive $800,000.
- 2009 CIP Allocations [
PDF: 61 KB]
$25 million Local Government Reform Fund
Over two years, the $25 million Local Government Reform Fund will help councils better manage their infrastructure and plan for future needs in their communities.
The Fund will fast-track local government infrastructure financial and asset management and planning under nationally consistent guidelines. It will also encourage cooperation between councils to improve their capacity to serve local communities.
In May 2009, the Local Government and Planning Ministers’ Council agreed to accelerate implementation of financial and asset management frameworks for councils, so that they plan and budget for infrastructure on a sustainable basis.
Local governments should be planning and funding infrastructure on a lifecycle basis to minimise whole of life costs. The initial construction of infrastructure only accounts for about 20 per cent of its lifetime costs. The remaining 80 per cent of costs arise from operating, maintaining and renewing the infrastructure and ultimately disposing of it once it is superseded.
Asset planning and management capabilities of local government vary considerably across the nation. The Fund will help ensure councils can develop the skills they need to achieve a higher standard of asset management and to compile nationally consistent data to enable their progress to be measured.
The Fund will also be used to encourage greater collaboration between local governments including shared services and planning, and support for collaboration between councils.
A number of councils have effective collaboration processes in place and councils elsewhere in Australia could benefit by adopting or adapting some of these innovations.
By working together councils are able to provide services more efficiently and effectively for their residents.
The Local Government Reform Fund will be delivered based on need and demonstrated commitment to reform.
The implementation of the Fund over the coming months will be informed by input from the states and territories and local government associations.
[For any queries please call the Information Line on 1800 005 494]
