Response delivered to strengthen council financial sustainability

• The Crisafulli Government’s response to Depreciation Taskforce report outlines pathway to support council sustainability.
• Recommendations recognise there is no one-size-fits-all approach to depreciation across Queensland councils. 
• The former Labor Government focused on an increasing number of ratios instead of practical solutions for our local governments. 
• The Crisafulli Government has welcomed the recommendations and delivered its response, outlining a pathway to strengthen council sustainability and better support communities. 

The Crisafulli Government has welcomed the recommendations from the Depreciation Taskforce and has delivered its response to the recommendations, outlining a pathway to strengthen council sustainability and better support communities into the future. 

Established in response to concerns raised by councils, the Taskforce brought together local government, industry and government representatives to identify opportunities to strengthen financial sustainability, asset management and long-term planning. 

During their decade of decline, the former Labor Government focused on increasing the number of ratios instead of practical solutions for local governments during their decade of decline. Their strategy did not address the underlying financial sustainability issues and good asset management. 

The Crisafulli Government is turning this around by delivering practical outcomes that will assist councils in managing their financial substantiality.  

The report confirms there is no one-size-fits-all approach to depreciation, with councils across Queensland facing different financial and asset management challenges. 

The Crisafulli Government’s response has identified three early priority reforms which will be completed by 1 May 2027, with other reforms, requiring further planning and coordination across stakeholder bodies, being addressed at a later date. 

The reforms support a more contemporary framework for assessing council sustainability, with greater focus on cash flow, asset condition and long-term planning, while strengthening financial reporting, asset management practices and infrastructure investment decision-making across the sector. 

Minister for Local Government and Water Ann Leahy said the Crisafulli Government was focused on practical reforms that would help councils build financial sustainability and plan for the future. 

“Under the former Labor Government, councils were left grappling with financial sustainability challenges, without the practical solutions needed to address them,” Minister Leahy said. 

“We’re reducing the impact of donated and grant funded non-critical infrastructure assets and assisting my councils with clearer reporting. 

“These reforms will strengthen financial transparency, improve asset management practices and support better-informed infrastructure investment decisions for the benefit of Queensland communities.” 

The Crisafulli Government will continue working with councils and the local government sector to implement the response, strengthen capability and service delivery, and address future challenges. 

For more information about the Depreciation Taskforce recommendations and the government’s response, visit: www.dlgwv.qld.gov.au/local-government/depreciation-taskforce  

ENDS