The Joint Select Committee on Constitutional Recognition has handed down its final report on the issue of financial recognition of the nation’s local government sector in the Australian Constitution, concluding that the issue should be put to a referendum on 14 September, the same day as the federal election.

The Committee’s recommendation follows from its major finding, that:

  • there is a strong case for recognition; lessons from the history of referenda support a 2013 referendum;
  • the prospects for success are good, due to existing bipartisan support at the federal level and the readiness of the Australian Local Government Association (ALGA) and local governments to campaign in support of change;
  • the prospects for success will rely on the strong commitment and campaigning by ALGA and its member bodies; and
  • the prospects for success will be greatly improved by the support of state governments.

The committee concluded that a referendum is crucial to allow the population to exercise their right to amend the Constitution, and that the proposed amendment would guarantee the ability of the Commonwealth Government to continue to directly fund key community infrastructure.

“Local government bodies in the 21st century take responsibility for much more than “roads, rates and rubbish” and local communities rely on this high level of service being maintained,” said Committee Chair Michelle Rowland MP.

“The Committee has carefully considered the difficult question of “the likelihood of success” of a proposed referendum, and the Committee’s major finding reflects the evidence that we received during the inquiry. We have found that the referendum has a good prospect of success, and we note that the support of state governments would greatly improve that prospect,” Ms Rowland said. “Based on this finding, the Committee believes that this referendum should go ahead in 2013.”

Federal Minister for Local Government, Simon Crean, said that the report echoes bipartisan support of the move on a Federal level.

"It shows there is bipartisan support at a Federal level with Labor, the Independents, the Greens and two Coalition members all agreeing that it can and should be done at the next election," Mr Crean said.

Mr Crean reiterated the Federal Government’s support of the push for recognition, but stressed that more support from all political parties is needed if it is to be successful.

The report has been welcomed by the Australian Local Government Association (ALGA), which has been campaigning tirelessly for recognition.

"We welcome the Committee's recommendation that the Commonwealth begin all necessary preparatory activities to ensure a successful outcome for a referendum on financial recognition in 2013 and we call on the Federal Government to implement the necessary legislation and provide public funding to support  a  campaign on the issue of constitutional recognition of local government,” ALGA President Felicity-Ann Lewis said.

ALGA is seeking an amendment to Section 96 of the Constitution so that it would read: "Parliament may grant financial assistance to any state or local government body formed by or under a law of a state or territory on such terms and conditions as the Parliament sees fit."

The full report is available here