The Federal Government has introduced legislation before Parliament that will seek to allow a referendum on local government recognition in the Australian Constitution.

The Constitutional Alteration Bill outlines the changes to be made to Section 96 of the Constitution that will acknowledge the financial relationship between the Commonwealth and local governments.

The Australian Local Government Association (ALGA) has called for unanimous support of the legislation, which ALGA President, Felicity-Ann Lewis, says is crucial to secure direct funding for community infrastructure and services.

"We want to stress to every MP that without recognition in the Constitution, direct federal funding for their communities is under threat," ALGA President, Mayor Felicity-ann Lewis said.

"Recent High Court challenges, including the successful Chaplaincy in Schools Court Case, are examples of where direct federal funding has been called into doubt.

"Without direct funding from the Australian Government for local roads and community infrastructure, councils would not be able to provide all the services that our communities need.

"Councils simply can't afford to fund the growing list of services that have been passed on to local government in recent years without Commonwealth support.  We need the vote of every MP to ensure the Constitutional Alteration Bill is passed and every Australian has the opportunity to vote on this important issue at a referendum."  

The change to the Constitution would see the following passage inscribed:

“..the Parliament may grant financial assistance to any State, or local government body formed by a law of a state, on such terms and conditions as the Parliament thinks fit.”