I move:

That the Senate—

(a) acknowledges the vertical fiscal imbalance in the Australian federal system and the impact this has on local government's ability to meet its expenditure responsibilities;

(b) notes that Financial Assistance Grants to local government have been subject to an index freeze since the 2014-15 Federal Budget; and

(c) calls on the Government to lift the freeze on indexation of the Financial Assistance Grants in the 2017-18 Federal Budget.