Long-term financial sustainability of local government

Long-term financial sustainability of local governmentFollowing an Auditor-General’s report outlining concerns about the long-term financial sustainability of local government in Queensland, the Property Council has provided a submission to the Parliament’s investigation into the matter.In considering the financial viability of local governments, the Property Council has argued that the Parliamentary Committee must not simply consider if revenue can match expenditure, but how local governments collect their revenue, whether it is consistent with the principles of fair and equitable taxation and whether it undermines the economic competitiveness of a local government area.The Property Council has raised concerned that the state’s differential and minimum rating system is being used by local governments to target certain properties with severe rate increases that are far beyond those experienced in other rating categories, and bear no correlation to services provided by council for those property types.The Property Council has encouraged the Committee to recommend that the Queensland Government develop a fairness principles guideline, similar to one used by the Victorian Government.Support has been given by the Property Council to Auditor-General recommendations that local governments should maintain complete and accurate asset condition data and asset management plans. By developing a greater understanding of their asset base, the Property Council contends that local governments will be in a stronger positon to make informed choices about creating alternative revenue streams through the disposal of surplus land.It is yet to be determined when the committee will report to Parliament.