Local councils across Australia are set to receive more than $1.7 billion in early financial assistance to help support the continued delivery of essential local services and community infrastructure.
The payment represents 50 per cent of the Federal Government’s Financial Assistance Grant allocations for the 2025–26 financial year and will be distributed to councils before 30 June. The aim is to ensure funds are available for shovel-ready projects and day-to-day operations without interruption.
The funding is untied, meaning councils have flexibility to allocate it to local priorities—whether that’s maintaining essential services, supporting recovery from recent weather events, or investing in new community initiatives.
This early payment is particularly timely for councils managing cash flow pressures or responding to climate-related recovery challenges. It is intended to provide financial certainty ahead of the new financial year.
The Financial Assistance Grant Program has provided over $70 billion in support to local governments over the past four decades. It forms part of a broader funding framework which includes initiatives like the Local Roads and Community Infrastructure Program, the Roads to Recovery Program, and the Growing Regions Program.
Councils can use the funds at their discretion in line with community needs, continuing their role in delivering infrastructure, services, and programs that support local liveability and resilience.
More information about the Financial Assistance Grant Program is available via the Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts.
