Policy Submission
State
2 July 2024 Inquiry into Local Government funding and services
Getting to a more fiscally sustainable and pro-growth local government sector.
Recommendations
Rates and revenue reform
- Abolish the local government rate cap.
- Shift council rates from capital-improved value to land value.
- Realign revenue from state government initiatives such as the Development Facilitation Program (DFP) to reduce adversarial relationships between state and local government bodies.
Better economic tools for local government
- Provide best-practice policy assessment frameworks that outline common considerations and how to measure them consistently across councils.
- Amend the Local Government Act 2020 to require cost-benefit analyses for significant proposed policy and rule changes.
- Create a "public consultancy" within the State Government to assist local councils with strategic work.
- Implement internal tender-first provisions and prohibit the acceptance by councils of "free lunches" from private consultancy firms.
Toward metropolitan governance
- Amalgamate all Greater Melbourne councils into a metropolitan-wide government in the style of that seen in Auckland, Brisbane and London.
- Implement a local board structure to allow local-level decision-making to remain intact.
- Roll back the 2018 shift towards single-member wards and reinstate multi-member wards.
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