In other cases, the State Government collect user-based charges that could be used to sustain the services they are charged on, but do not distribute them equitably to local government. A prime example of this is the Heavy Vehicle Motor Tax, a charge to recover road maintenance costs resulting from heavy vehicle road usage. The State Government has allocated the same amount, $1.5 million per annum, for local roads for the last 25 years. This is despite the revenue collected by the State Government more than doubling in that time and heavy vehicle usage of local roads also increasing significantly. Instead, councils must rely on general revenue from rate payers to cross subsidise the impact of heavy vehicles on local roads.
What does financial sustainability look like for local governments? - The Examiner
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