The Local Government Association of Queensland (LGAQ) has welcomed increased infrastructure investment in the State Budget, including the doubling of the Residential Activation Fund, but warns councils are still facing funding shortfalls across critical services.

Funding for the Transport Infrastructure Development Scheme (TIDS) remains capped at $76 million a year, leaving councils to shoulder growing road maintenance costs amid rising delivery expenses.

Another key omission is the lack of a dedicated funding program to address the state’s ageing water and wastewater infrastructure, with councils continuing to call for a multi-million-dollar annual commitment to support essential upgrades.

While welcoming targeted funding measures, the LGAQ said broader financial pressures remain – particularly for regional and local infrastructure delivery.

Queensland households are facing a growing State Government bin tax after the State Budget failed to pause reductions in the rebate paid to councils to shield residents from the waste levy on household waste.

Instead, Budget papers reveal the levy is set to generate an additional half a billion dollars in revenue for the government over the next four years, with households in the levy zone expected to pay more.

The LGAQ has expressed disappointment over the continued reduction in upfront waste levy payments to councils, which are designed to offset these costs for households.

Alison Smith, LGAQ Chief Executive Officer, said the peak body will continue to support councils and campaign against the bin tax while advocating for its six-point plan, which contains multiple waste solutions.

Prior to the State Budget, the LGAQ called for increased infrastructure investment, including lifting TIDS funding to $100 million per year, reintroducing a Water and Sewerage Infrastructure Program, and delivering long-term support for resource recovery and community infrastructure initiatives.

“Councils receive only three per cent of the nation’s overall tax revenue, making them heavily reliant on federal and state governments for funding to support everyday services,” she said.

“One of the biggest challenges for councils is the looming ‘infrastructure cliff’ which sees them facing a $5 billion funding shortfall for badly needed water infrastructure upgrades without much-needed new investment.

“The LGAQ’s Last Drop report shows Queenslanders are already experiencing the consequences, with supply interruptions being felt in some households and businesses.

“The report offers solutions, as without urgent support, the gap between infrastructure needs and available funding in all corners of the state will continue to widen.

“Councils have also been left reeling by the Commonwealth’s recent announcement it intends to strip them of vital disaster recovery funding. These pressures highlight the fact that the other levels of government need to do far more to support councils financially to improve community liveability and support economic activity.”

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