Fair share of road funding

Published on 31 March 2021

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For many years, there has been a shortfall in the level of funding to South Australian councils under the Identified Roads component of their Commonwealth Financial Assistance Grants.

This funding is important to helping councils keep roads safe for motorists by upgrading and maintaining local road networks. 

South Australian councils are asking the Commonwealth Government to maintain a fair share of road funding for our local communities by providing $20 million per year in the 2021-22 Federal Budget.

South Australia has 11 per cent of Australia’s local roads, and seven per cent of its population, but only receives 5.5 per cent of the Identified Roads component of Commonwealth Financial Assistance Grants. 

Since 2003, successive Federal Governments have allocated supplementary road funding to South Australia as a temporary fix to an unfair funding formula. 

This supplementary funding was cut in the 2014-15 Federal Budget and reinstated in 2017-18 at $20 million per year for two years.  

Most recently, the 2019-20 Federal Budget committed $40 million to continue supplementary road funding for two years, which is due to expire on 30 June 2021. 

Supplementary road funding is not guaranteed beyond this financial year, and without a renewed commitment, communities in South Australia will once again be without a fair share of Australia’s road funding.

The LGA will be presenting a 'virtual delegation' to the key decision makers in Canberra in May. 

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