THE Federal Treasurer’s 2015 Intergenerational Report (IGR) has implications for local government as well as the wider community.
The fourth IGR uses graphs to highlight an increasing gap between the rising costs of services and falling revenues caused by the impact of both demographic change in Australia and economic ideology.
Population growth and an aging community is expected to increase the cost of health and community services.
But the Treasurer and the Prime Minister believe government deficits are always inherently negative and that the Budget must be brought into balance within the next four years.
This means that there will be less capital grants available to local governments.
Federal Government spending and investment will remain hostage to monetary policy. Economic growth will remain below 3 per cent and under-employment is likely to increase. Local governments will be impacted by the rapid growth model behind the IGR.
But they will have less resources – unless they increase our rates.
I believe that ratepayers in Casey will be hit with a 6 per cent rates rise for the 2015/16 financial year.
John Glazebrook,
Endeavour Hills.