Farmers call for long-term fix to rural council funding

New South Wales farmers are calling for urgent reforms to local government funding, warning deteriorating rural roads are placing pressure on regional communities and farm businesses.

The issue was raised during a federal parliamentary inquiry into local government funding and fiscal sustainability, where the state’s peak farming body argued councils need greater certainty to maintain critical infrastructure.

NSW Farmers Business, Economics and Trade Committee Chair John Lowe told the inquiry many rural councils are relying on short-term project funding and temporary repairs to keep roads operational.

He says roads are often the only connection for farming communities, and unreliable infrastructure affects freight movements, safety and access to essential services.

NSW Farmers is calling on the Federal Government to restore Financial Assistance Grants to at least one per cent of total Commonwealth tax revenue, arguing it would provide a more stable funding base for local councils.

The organisation is also seeking a pause on special variation rate increases, saying many farming businesses cannot continue absorbing rising council charges while also dealing with mounting production costs.

Mr Lowe says changes in land ownership are further reducing the amount of rateable land available to councils, with acquisitions linked to national parks, forestry, mining offsets and energy projects shifting more of the burden onto remaining landholders.

The inquiry continues as regional councils across Australia report growing difficulty maintaining road networks following years of extreme weather and rising construction costs.