Union warns council services at risk without funding reform

THE United Services Union has warned essential council-run services, including early childhood education, are under pressure without increased federal funding for local government.

The warning comes as a House of Representatives inquiry into local government funding and fiscal sustainability moves towards the end of its submissions phase.

The inquiry was referred to parliament in November by federal regional development and local government minister Kristy McBain, after a previous inquiry lapsed when parliament was dissolved.

At the time, McBain said the inquiry would examine the financial sustainability of councils and the impact of cost shifting from other levels of government.

“The first Inquiry started in 2024, more than two decades after the last such Parliamentary Inquiry into the sector’s financial capacity,” McBain said.

“This Inquiry will finish that crucial work investigating the financial sustainability of local governments and will provide a final report which the Government looks forward to reviewing.”

NSW branch secretary Graeme Kelly said councils were struggling to maintain services and infrastructure under rate pegging and long-term funding constraints.

“The local council is often the heart of our community,” Kelly said.

He said council-run early childhood education centres were being squeezed despite delivering higher standards of care than many for-profit providers.

“In New South Wales, for-profit early childhood education providers are more likely to fail minimum standards than not-for-profit providers like councils,” Kelly said.

The union said councils across the state were increasingly being forced to choose between maintaining infrastructure and keeping childcare services open.

It is calling for increased federal funding to support council-ru