Bellingen Shire Council has welcomed several funding opportunities in the 2026–27 Federal Budget, while noting that the Budget does not resolve the long-term financial sustainability challenges facing local government.
Bellingen Shire Council General Manager, Mark Griffioen, said the Budget presented a mixed outcome for councils, with useful commitments in local roads, active transport, community infrastructure, housing-enabling infrastructure and aged care reform.
“The Federal Budget includes a number of funding streams that are relevant to Bellingen Shire Council, particularly around local roads, active transport, community infrastructure and support for older people to remain at home,” Mark Griffioen said.
“However, it is important to be clear that this is not a windfall for local government. The Budget provides targeted opportunities, but it does not fix the underlying structural funding challenge that councils across Australia continue to face.”
The Budget includes $3.6 billion in Financial Assistance Grants nationally, including a $2.9 billion bring-forward payment representing 80 per cent of the 2026–27 estimate. Council notes this will assist cashflow in the short term but does not represent additional recurrent funding.
“The bring-forward of Financial Assistance Grants is helpful from a cashflow perspective, but it should not be mistaken for new money,” Mark Griffioen said.
“It may improve the current year position, but it also means there will be a corresponding reduction in next year’s funding profile.”
Mr Griffioen also noted the Australian Local Government Association’s concern that Financial Assistance Grants have declined from 0.51 per cent to 0.49 per cent of Commonwealth taxation revenue.
“This reinforces the point local government has been making for many years. Councils are expected to deliver essential infrastructure and services, respond to natural disasters, maintain local roads and support community wellbeing, but we do not receive a sustainable share of national revenue to meet those expectations,” Mark Griffioen said.
“The Country Mayor’s Association Invest in Us campaign advocates for an increase in funding to 1% of Commonwealth taxation revenue for Local Government, which would allow councils to meet the community’s growing demand for services and facilities, without having to resort to budget deficits and Special Rate Variations which are becoming increasingly common.”
The Budget includes ongoing funding for Roads to Recovery, the Black Spot Program, the Safer Local Roads and Infrastructure Program and the Active Transport Fund. Council will continue to assess opportunities under these programs where they align with adopted priorities and available organisational capacity.
The Budget also includes a $2 billion Local Infrastructure Fund under the Housing Support Program, with $500 million dedicated to regional local infrastructure. The fund is intended to support enabling infrastructure such as roads, drainage, water, sewer and electricity connections.
“While this is a significant national investment, Bellingen Shire’s relatively low growth rate and limited housing yield may make this a challenging funding stream for Council to access,” Mark Griffioen said.
“Council will still assess the opportunity carefully and identify any projects that can genuinely demonstrate housing-enabling outcomes.”
The Budget’s aged care measures are also relevant to Council’s Dorrigo Support Services, particularly the continued reform of the Support at Home program and investment in home care.
“The direction of supporting older people to remain at home is positive and aligns with the purpose of Dorrigo Support Services,” Mark Griffioen said.
“At the same time, aged care reform brings financial, workforce, compliance and service delivery risks that Council will need to continue monitoring closely.”
Council will continue to advocate for targeted investment in Waterfall Way resilience, the Cascade Corridor, disaster preparedness, community infrastructure and the Great Koala National Park transition.
“The Budget gives Council some useful opportunities, but our response needs to be disciplined,” Mr Griffioen said.
“We will pursue funding where it aligns with Council’s adopted priorities, avoid creating unfunded recurrent commitments, and continue advocating for fairer, more predictable and sustainable funding for local government.”