Alannah Mactiernan (Perth, Australian Labor Party) Share this | Link to this | Hansard source

The Prime Minister said that his budget is the budget the Australian people voted for. Well, that is news to the small regional communities across WA who will be facing massive rate hikes as a result of the Abbott government's $102 million raid on financial assistance grants to WA local governments. Their councils are now in a very tough position: increased rates and charges or reduced services to communities. Small rural communities will be hardest hit. They rely on these grants often for over 30 per cent of their revenue. These councils—councils like Morawa and Halls Creek—will have little choice but to raise their rates by as much as 20 per cent just to keep delivering basic services. Local government is already under pressure pending the High Court's decision on the second Williams case on Tuesday, which calls into question the constitutional validity of direct Commonwealth funding to local government. The Abbott opposition had destroyed the bipartisan action on this issue and killed off any chance of a referendum. They must take the responsibility for that uncertainty caused by Williams. But it is not too late for the government to repair its relationship with local government. Now is the time for the coalition to prove that it is a government for all Australia and to restore indexation for councils and let them continue their good work.