Beyond Symbolism: Finding a Place for Local Government in Australia’s Constitution

Local governments could provide schools and fast development approvals if they receive more than just ‘recognition’ in the Constitution.

A new report by Dr Oliver Hartwich of the Centre for Independent Studies says that local governments are weak and their dependence on state government largesse and legislation is disempowering local communities.

Local governments’ share of Australia’s total tax revenue is under three percent, and for about a third of their expenditure they depend on grants from state and federal of governments.

Local governments’ powers are being eroded and transferred to the states.  And council amalgamations push local political decision making even further away from local people.

But locals shouldn’t despair.

With their own financial revenue and a formal role in the Commonwealth Constitution, local governments have the potential to do much more.

For example, primary and secondary education could be assigned to the local government level rather than one-size-fits-all state government education. Local school boards could administer schools, offering parents a greater role and providing scope for tailoring schooling solutions to the needs of the local community.

The unpopular ‘Bill Heslops’ and ‘Bob Jellies’ of local councils are often criticised for delays in approvals of development applications, but local governments play an important role in the planning and development of the built environment.  By giving the tax revenue generated by housing and development to the local rather than state government, councils would have the incentive to enable and speed up development.

Yet for local governments to be able to bring government closer to the people directly affected by its decisions, the Prime Minister must create a new place for local governments in the Commonwealth Constitution, without overly complicating federal relations.

 

Beyond Symbolism: Finding a Place for Local Government in Australia’s Constitution by Oliver Hartwich is being released by the Centre for Independent Studies on Thursday.

Dr Oliver Hartwich is a researcher at the Centre for Independent Studies in Sydney. Previously, he was the Chief Economist at British think tank Policy Exchange. His publications with Policy Exchange dealt with housing and planning, urban regeneration and transport policy.