Julie Collins (Franklin, Australian Labor Party, Shadow Minister for Regional Development and Local Government) Share this | Link to this | Hansard source

asked the Minister for Infrastructure and Regional Development, in writing, on 15 July 2014:

In respect of the freeze on indexation to Financial Assistance Grants resulting in an estimated total loss of $925 million in council funding,

(a) is he aware of comments made by the President of the Municipal Association of Victoria,

Councillor Bill McArthur, that these cuts will create a ‘black hole’ in Victorian council budgets, primarily in rural communities,

(b) can he advise what services local councils should cut to recover this loss of funding,

(c) is it a fact that rural, remote and Indigenous councils will at the same time incur rising diesel costs, as claimed by the Chief Executive of the Local Government Association Queensland, Mr Greg Hallam, and

(d) did he ask his department to undertake a regional impact study to assess the impact on rural and    regional councils; if not, why not.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

The answer to the honourable member’s question is as follows:

(a) Yes.

(b) The management of local government’s programme and budgetary practices is a matter for each individual local government body.

(c) As fuel excise is applied at a flat rate, the re-introduction of indexation will be the same in rural areas as it will be in urban areas.

For those businesses using fuel in off-road operations or operating a vehicle with a gross vehicle mass in excess of 4.5 tonnes, this measure will not increase their business costs. These businesses are able to receive fuel tax credits to offset the fuel duty paid. For off-road activities, this is the full reimbursement of fuel duty while for on-road vehicles with a gross vehicle mass in excess of 4.5 tonnes this is equivalent to the duty rate minus the Road User Charge.

Councils will also benefit substantially from the abolition of the carbon tax, saving millions of dollars in road construction costs, waste management emissions taxes, electricity and street lighting costs.

(d) No. This measure was one of a number of significant packages and measures that were directed at supporting stronger and more sustainable economic growth and repairing the budget, and the 2014-15 Budget makes clear that all Australians are being asked to contribute to this task (page 1-8 of Budget Paper No.1), including all local government bodies.