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A new federal inquiry will examine whether local councils across Australia are being adequately funded to meet the growing list of responsibilities expected of them, a move welcomed by Macquarie MP Susan Templeman, who says communities like the Hawkesbury stand to benefit from greater transparency and accountability.
The House of Representatives Standing Committee on Regional Development, Infrastructure and Transport has launched the inquiry, which will look at the financial sustainability of local government and whether current funding systems are fit for purpose.
More Than “Rates, Roads and Rubbish”
Ms Templeman said many people still assume councils are responsible only for basic services such as collecting waste, maintaining roads and managing local rates but their responsibilities have expanded dramatically.
“Whether it’s leading the local recovery after a natural disaster, as Hawkesbury and Blue Mountains Councils have had to do, or running more than 50 childcare and early-education services as Penrith Council does, their roles are expansive and important,” she said.
The inquiry will explore whether the existing mix of funding, a combination of council rates, state government contributions and federal grants reflects the demands placed on councils, especially as communities face increasing disaster recovery costs, infrastructure needs and population growth.
Are Councils Being Set Up to Fail?
Ms Templeman said many councils publicly acknowledge they cannot afford to deliver all the services their communities expect.
“With councils often saying they can’t afford to do the things their community would like them to, you’ve got to ask if the existing funding mechanisms are addressing the evolving responsibilities. This is one of the questions the new inquiry will consider,” she said.
Rate Rises Driving Local Concern
The inquiry comes at a time when councils across NSW, including the Hawkesbury, are considering or implementing steep rate rises in an effort to keep up with infrastructure and service demands.
Committee Chair Fiona Phillips MP said the inquiry aims to gain “a deeper understanding of the financial relationship between local government and other levels of government,” with an emphasis on funding mechanisms and long-term fiscal sustainability.
Millions Delivered to Local Councils After 2022 Election
Ms Templeman pointed to recent federal investments in the region as an example of how targeted support can help councils meet community needs.
“After the 2022 election, I delivered more than $20 million in dedicated road funding for Hawkesbury and Blue Mountains Councils, above and beyond regular funding programs,” she said.
“I’ve also delivered millions more in parks funding, pathways, and upgrades of other council-owned community assets. So I’m pleased the inquiry will examine not just where the money comes from, but also the impact and effectiveness of that funding.”
Community Input Encouraged
The inquiry builds on work begun during the last term of Parliament, which included 280 submissions and 16 public hearings. That evidence will now be brought into the new process, along with fresh submissions.
Ms Templeman urged residents across the Hawkesbury, Nepean and Blue Mountains to take part.
I encourage residents to make a submission HERE with submissions open until Tuesday 3 February 2026.
Submissions to the inquiry are open until 3 February 2026.
