COUNCILS are a step closer to securing federal funding after a parliamentary committee recommended holding a referendum on whether local government be recognised in the constitution.
The Australian Local Government Association (ALGA) says the referendum to alter the constitution, which will help councils gain funding, could be held in September with the federal election.
After a five-year campaign for the referendum the ALGA is happy with the recommendation for the referendum as it will enable councils to be legally recognised as "legitimate recipients of direct federal funding".
"Recognition in the constitution is needed to protect important funding for local projects and provide councils with the certainty that funding for local projects can continue without claims of constitutional invalidity," ALGA president Felicity-Ann Lewis said.
The ALGA also wants money from the federal government to support a campaign to convince Australians to vote in favour of constitutional recognition.
"ALGA and its state associations have committed to provide millions of dollars to campaign for the referendum and it is vital that public funding is also made available," Ms Lewis said.
The AlGA wants Section 96 of the constitution to be amended to read: "Parliament may grant financial assistance to any state or local government body formed by or under a law of state or territory on such terms and conditions as the parliament sees fit."
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