2024 Federal Government Inquiry into Local Government Sustainability – RCV Submission

While all tiers of government must be responsible for raising revenue to fund operations and service delivery, the capacity of regional local governments to do so is constrained by relatively smaller populations, the capacity of community to pay, and legislative impediments.  

Commonwealth and state government grants are the second highest source of revenue for Victorian councils after rates and charges. 

In an environment where councils’ expenses are persistently growing well above inflation (9.3 per cent in 2022-23), previously shared costs are being shifted onto local government by the state either intentionally or through static funding arrangements (e.g. public libraries; school crossing supervision; maternal and child health services; landfill and waste services levies; and disaster response and reconstruction), and increases to general rates and municipal charges are capped by state law at an amount based on the forecast Consumer Price Index (CPI); untied funding from the Australian Government is critical to the functioning of local government. 

In March 2024, the Victorian Auditor-General’s Office (VAGO) reported another decline in the adjusted underlying result indicator – a measure of a council’s ability to generate a surplus from its ordinary course of business (excluding capital receipts) – for Victorian councils, noting that a continuing “longer-term negative trend in this indicator could force councils to reduce the services they offer their communities”. 

Significantly, VAGO noted that “[the sector’s] financial performance would have declined had the Australian Government not advanced 100 per cent of the 2023–24 financial assistance grants in 2022–23.” 

Recommendation 1: 

Restore Financial Assistance Grants to at least one per cent of Commonwealth taxation revenue. 

Recommendation 2: 

Reform the Financial Assistance Grant formula such that distributions are made on an equity basis, based on an assessment of local governments’ relative capacity to raise revenue. 

Recommendation 3: 

The Australian Government ‘reset the payment cycle’ with an additional once-off payment, to address the bring-forward of Financial Assistance Grants. 

Infrastructure and service delivery obligations: Australia’s housing shortage is exacerbating local government financial sustainability problems 

Infrastructure demands are placing an increasing burden on local government as population growth in regional cities outpaces all previous forecasts. More than 40 houses need to be built in regional Victoria every single day for the next 10 years to meet the Victorian Government’s Housing Statement targets. 

Whether new houses are in greenfield or brownfield developments, they often necessitate the augmentation of water mains, sewerage plants, and an upgrading of local roads and nearby intersections. Higher populations also place greater demand on council-run facilities and services such as public libraries, community centres, playgrounds, parks and open spaces, maternal and child health services, kindergartens, and early childhood education centres. 

Grant funding (distinct from debt facilities) from the Commonwealth and from state and territory governments is urgently needed to bring forward and/or make viable infrastructure projects that support new housing. This includes essential services like water, power, and sewage; footpaths; local roads; upgraded and/or signalised intersections; and infrastructure projects that provide amenities to support new housing, including shared facilities like community centres and parks. 

Developers have a responsibility to help pay for this infrastructure. However, they cannot bear this cost alone without the risk of regional Australians being priced out of owning a home. Additionally, ‘pioneer developers’ are reluctant to install infrastructure at their own cost to the benefit of future developments. At present, a ‘first mover disadvantage’ exists in identified growth areas across regional Victoria. 

In Victoria, the abolition of the Regional Jobs and Infrastructure Fund further restricts the ability of regional councils to access funding towards civic infrastructure. Regional cities do not have access to the state’s Growing Suburbs Fund nor the Growth Areas Infrastructure Contribution Fund (including the Growth Areas Public Transport Fund and Building New Communities Fund). The state’s windfall gains tax revenue associated with land rezoned for housing within local government areas in regional Victoria is not hypothecated for any related purpose. 

Recommendation 4: 

Make permanent the Housing Support Program to support enabling infrastructure projects and provide certainty with recurrent funding through the 2025-26 Budget. 

Recommendation 5: 

Reinstate the Local Roads and Community Infrastructure Program through which local governments may nominate projects for the construction, maintenance or improvement of local roads and council-owned assets, up to a nominal funding allocation determined by the Commonwealth. 

Recommendation 6: 

Commonwealth infrastructure funding be equitably distributed, noting that some programs (e.g. Growing Regions Program) disadvantage those Australians living in states like Victoria where local government cannot readily access co-contributions from the state. 

Infrastructure and service delivery obligations: building back better after natural disasters is a critical investment in long-term sustainability 

Essential public assets (e.g. roads and bridges) and community infrastructure such as libraries, community centres, playgrounds, sports and recreation facilities underpin the liveability of regional communities. However, they are often impacted by flood, fire, and severe storms. 

As natural disasters become more frequent and intense, every tier of government has a responsibility to ensure that public monies are committed wisely during the recovery phase and with a long-term view, to best support communities and build resilience to future disasters. 

Historically, there has been no provision by the Commonwealth or state and territory governments for community infrastructure projects to be redesigned to remove or reduce the risk of damage from future natural disasters. For many regional cities, the risk of rebuilding community infrastructure in the same disaster-affected area without extra protective provisions has been deemed too great a risk and – in the absence of additional funding to improve these facilities – they have not been rebuilt. 

Following a disaster, ‘infrastructure betterment’ is the restoration or replacement of damaged assets (at a higher cost) to a more disaster resilient standard than its pre-disaster standard. It is a cost-effective opportunity to reduce the risk posed by future disasters and help reduce recovery costs on governments longer-term. Infrastructure betterment can also bring additional social, economic, and environmental benefits for local communities. 

RCV recognises that the Australian Government has acted in response to this need and responsibility. 

However, infrastructure betterment funding remains available only through Category D (“relief or recovery carried out to alleviate distress or damage in circumstances which are, in the opinion of the Commonwealth, exceptional”) of the Disaster Recovery Funding Arrangements (DRFA). It is not possible, for example, for local governments to access betterment funding through a Community Recovery Fund activated under Category C of the DRFA to support “severely affected” communities. 

Recommendation 7: 

The Commonwealth work with states and territories to include infrastructure betterment provisions within Category B and Category C of the Disaster Recovery Funding Arrangements, in acknowledgment that building resilience to natural disasters is not an exceptional circumstance. 

Attraction and retention of a skilled workforce in the local government sector 

The local government sector in regional Victoria is experiencing extreme workforce challenges due to a statewide shortage of planning, building, and engineering staff. This is impacting local government’s ability to approve building and planning permits in a timely manner, exacerbating issues including housing shortages.  

While all local governments may struggle to recruit and retain strategic planners, statutory planners, municipal building surveyors and development engineers, regionally-based councils face additional barriers, including: 

• struggling to match salaries offered in metropolitan roles or the private sector 

• the need to attract staff not only to a role, but to the region, when seeking to source staff from outside the LGA 

• challenges associated with working in smaller teams, including burnout 

• challenges of working in small communities, where planners are highly visible to developers and other permit applicants outside their professional life 

• lack of accommodation options available to house new staff to the region.  

RCV acknowledges the Victorian Government’s efforts to bolster support to councils, including through the resources of the Department of Transport and Planning and the Victorian Planning Authority. However, expanding the capacity of these bodies often results in a negligible net impact, as the state recruits from the same small pool as local government – leading some people to leave local government roles rather than adding genuine capacity to the workforce. 

Long-term, we must encourage more highly-skilled Australians to consider a career in local government. However, action and incentivisation must be taken now. 

Internal strategies identified by our member councils include: increasing the use of consultants; fostering career changes from within each organisation; formalising remote working arrangements (including accommodating interstate employees, where necessity of the task demands such flexibility to an applicant); and reimbursement of relocation costs. 

The efforts of local government must be complemented and amplified by other tiers of government. The Australian Government can play a role in attracting critical workers to the local government sector, including through skilled migration. 

Recommendation 8: 

A 12-month international advertising campaign be established, to attract planners, development engineers, and other in-demand workers, to live and work in regional Australia within the local government sector.  

Recommendation 9: 

The Skilled Work Regional (Provisional) visa (subclass 491) be streamlined, making it less complex and less costly for local governments in regional areas to facilitate the migration of an employee to a critical role, including allowing sponsorship by a local government (in addition to “a state or territory government agency” or an “eligible relative”). 

Recommendation 10:  

That the occupations of Urban and Regional Planner (ANZSCO 232611), Civil Engineer (ANZSCO 233211), Civil Engineering Draftsperson (ANZSCO 312211), and Civil Engineering Technician (ANZSCO 312212) be included in the Commonwealth’s final Core Skills Occupation List. 

Recommendation 11:  

The Australian Government deem statutory planners critical to the National Housing Accord and encourage more people to take up this occupation in the public sector. Consideration should be given to establishing scholarships; forgiving Higher Education Loan Program (HELP) debt for practitioners who live in regional Australia and work in local government; and extending eligibility for the ‘Commonwealth Prac Payment’ to students undertaking mandatory placements whilst studying a course accredited by the Planning Institute of Australia. 

 

MEDIA RELEASE
RCV response to 2024-25 Federal Budget

Wednesday 15 May 2024

Regional Cities Victoria (RCV) Chair Cr Shane Sali, Mayor of Shepparton said the 2024-25 Federal Budget delivered an important victory for RCV, with funding to help ease the housing shortage in regional Victoria.

“RCV welcomes the Federal Government’s $1 billion investment in a program that can help unlock more housing in regional Victoria,” Cr Sali said.

The Government is making available an extra $1 billion to states and territories to deliver new housing – including for connecting essential services such as water, power, sewerage and roads. This investment expands on the $500 million already committed through the Housing Support Program to support enabling infrastructure to unlock more homes.

“In the lead up to both the State and Federal Budgets, RCV advocated for greater investment in enabling infrastructure to unlock new housing stock in regional cities. The expanded Housing Support Program will help local government make it quicker, easier and more affordable for people to build new homes in Victoria’s regions.”

“RCV is committed to strengthening our regional economies, encouraging sustainable growth, and maximising regional liveability. We want to help build a prosperous regional Victoria through investment in infrastructure and services that help grow our cities’ economies and communities,” Cr Sali said.

“To do that we need considered investment that underpins long-term economic prosperity, keeps the cost of living down, and improves liveability in the regions.

“Challenges such as a lack of housing supply and workforce shortages need to be addressed in the short term to unlock regional Victoria’s growth potential.”

RCV acknowledged the Albanese Government’s continued support of regional Australia through ongoing investment made in programs including Growing Regions, Roads to Recovery, Housing Support and Regional Precincts and Partnerships.

However, Cr Sali said RCV remained concerned about the lack of investment in community infrastructure needed to meet the growing number of people who want to live and work in regional Victoria.

“It’s been two years since the Albanese Government was elected. We’ve had reviews and we’ve lost some big projects. These announcements of buckets of money were welcome, but it’s time to tip that money into regional Victoria,” Cr Sali said.

“Local infrastructure projects are a vital part of any regional community. They not only improve the liveability of regional cities and towns but also contribute to the local economy and create local jobs.

“RCV will continue to work with and advocate to the Federal Government to ensure regional Victorians are not left behind – this is specifically important given the pace of growth across regional Victoria.”

Regional Cities Victoria comprises the 10 largest regional cities in Victoria – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga.

Collectively, these cities are home to more than 800,000 Victorians, and contribute to approximately 10 per cent of Victoria’s economy.

Media contact: Emily Broadbent – 0413 133 627

CRITICAL WORKERS

13 May 2024

Regional Cities Victoria (RCV) has welcomed the Federal Government’s $300 weekly payment to support students on work placement when training for critical occupations – but said that support must include placements for Victoria’s future town planners.

RCV is the peak body for regional Victoria, comprising of the 10 largest cities of Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool, and Wodonga.
Collectively, these cities are home to more than 800,000 Victorians, and contribute to approximately 10 per cent of Victoria’s economy.

RCV Chair, Cr Shane Sali acknowledged regional businesses were suffering from skills and labour shortages across a range of sectors, namely: hospitals and health services, aged care, early childhood education, food production, advanced manufacturing, and the hospitality sector (seasonal workforce).

However Cr Sali said regional Victoria was specifically experiencing extreme challenges due to a state-wide shortage of planning and engineering staff.

RCV’s submission to the Federal 2024-25 Budget highlights the shortage of planners, noting that while all local governments are struggling to recruit and retain planners, regionally based councils faced additional barriers such as struggling to match the salaries offered in metropolitan roles or the private sector and the need to attract staff not only to the role, but to the region, when seeking to source staff from outside the area.

Demand for workers in regional areas is at an all-time high. The Victorian Skills Plan for 2023 into 2024 highlights that more than 75,000 new workers are expected in regional Victoria by 2026.

Attracting and retaining skilled workers is a key challenge for businesses and organisations in regional Victoria, exacerbated by a shortage of housing and accommodation options which is driving up the costs of living in regional Victoria.

Quotes to attribute to RCV Chair, Cr Shane Sali, Mayor of Greater Shepparton:

“Support for student placements for critical occupations must include planners – especially in regional Victoria.

“We just can’t meet the expectations of government commitments, like the Housing Statement, if we don’t have the professionals to do the work – such as planners, engineers, building surveyors and project managers.

“If we’re going to tackle the housing crisis, and we’re going to manage the growth of our regional areas, we really need the Federal Government to recognise planners as critical occupations and incentivise training for these jobs too.”

Media: Emily Broadbent 0413 133 627

RCV response to 2024-25 Victorian Budget

Regional Cities Victoria (RCV) Chair Cr Shane Sali, Mayor of Shepparton, described today’s Victorian Budget as a modest Budget for regional Victoria.

“It’s a Budget that does what it has to, but not necessarily what it needs to for regional Victoria,” Cr Sali said.

“There’s a lot we’ve been asked to look back on, but not that much to look forward to.”

Cr Sali acknowledged modest investment in regional areas across health, transport and education as well as emergency recovery and road maintenance.

However, he said RCV was concerned about the lack of future investment opportunities in community infrastructure needed to meet the growing number of people who want to live and work in regional Victoria.

“We are disappointed the Regional Jobs and Infrastructure Fund has not been reinstated, because for regional Victoria there is no pathway for future projects beyond the existing pipeline currently under construction.

“Local infrastructure projects are a vital part of any regional community. They not only improve the liveability of regional cities and towns but also contribute to the local economy and create local jobs,” Cr Sali said.

“Regional Victoria needs considered investment to underpin long-term economic prosperity and improve liveability in the regions. Challenges such as trunk infrastructure to unlock new housing and workforce shortages need to be addressed urgently to support regional Victoria’s growth.

“RCV will continue to work with and advocate to the Victorian Government to ensure regional Victorians are not left behind – showcasing everything our regions have to offer and capitalising on people’s interest to live, work, and visit our cities.”

Regional Cities Victoria comprises the 10 largest regional cities in Victoria – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga.

Collectively, these cities are home to more than 800,000 Victorians, and contribute to approximately 10 per cent of Victoria’s economy. 

Media contact: Emily Broadbent – 0413 133 627

GROWING OUR REGIONS

3 May 2024

Regional Cities Victoria (RCV) has welcomed the National Housing Supply and Affordability Council’s
State of the Housing System 2024 report released today.

RCV was particularly keen to see the report highlight reforms to address a lack of enabling
infrastructure (8.1.4, p154) as a key element to one of the 10 areas that would increase housing
supply.

In its submissions to both Federal and State Budgets this year, RCV called on governments to fund
enabling, or trunk infrastructure to help unlock more land for housing.

RCV acknowledges and welcomes the Federal Government’s $500 million Housing Support Fund
announced in March but has called for the State Government to match that with a new $250 million
fund for new dwellings across regional Victoria, using proceeds from the Government’s Windfall Gains
Tax.

More than 40 houses need to be built in the regions every single day for the next 10 years to meet the
Victorian Government’s Housing Statement targets.

RCV has suggested that developers help pay for this, but water and sewerage infrastructure cannot be
included in Developer Contributions Plans in Victoria and no commitment has been made to revise
eligibility requirements.

RCV is the peak body for regional Victoria, comprising of the 10 largest cities of Ballarat, Bendigo,
Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool, and Wodonga.

Collectively, these cities are home to more than 800,000 Victorians, and contribute to approximately
10 per cent of Victoria’s economy.

Quotes to attribute to RCV Chair, Cr Shane Sali, Mayor of Greater Shepparton:

“We absolutely want to make it quicker, easier, and cheaper for people to build their home in regional
Victoria.”

“We’ve got the space to grow, but the need for utilities for these areas – such as new water pipes or
bigger sewage plants – is stopping development.”

“Local governments are keen to play their role in unlocking land supply – it means more homes and
more jobs for our regions – but the lack of pipes and water is holding back local businesses and making
the housing crisis worse.”

CASE STUDIES

Bendigo: Calder Hwy Maiden Gully signalised intersection ($7m for 2,093 new homes)
Two residential subdivisions and a new supermarket in Maiden Gully are not able to proceed until the
junction of Calder Highway and Maiden Gully Rd is signalised – estimated at $7m. Signalisation of this
intersection will immediately unlock land for 141 new homes in a key growth area in Bendigo and
enable a further 1,952 new homes thereafter.

Latrobe: Lake Narracan Intersection Projects ($TBD for 3,700 new homes)
Several intersections are required to support the release of land within the Lake Narracan Precinct
Structure Plan area in Moe/Newborough. Council is currently seeking funding of $3m to support the
cost of commissioning traffic modelling, detailed design, and approval of the intersections, to unlock
3,700 new homes.

Geelong: Northern and Western Geelong Growth Area ($TBD for >160 new homes)
Unlocking more developable land in NWGGA if an online system lifecycle management analysis is done
for the City to support an online drainage system. The current Creamery Road PSP demonstrates that
this could deliver an increase in net developable of 16 Hectares of land.

Shepparton: Water mains in Kialla and Kialla West growth areas ($3.9m for 7,000+ new homes)
Development within the Kialla North and Kialla West precincts (>700 ha) depends on new water
infrastructure along the Goulburn Valley Highway corridor. Unless dedicated additional funding is
made available, the 5km of new water pipes needed will not be built until 2032 – at least 4 years after
population projections indicate new homes in this area are needed.

Wodonga: Trunk Sewer Upgrade project ($50m to accommodate growth to 2040)
Based on current growth rates the capacity of Wodonga’s ‘No.1 Sewer Pumping Station’ will be met in
the very near future. Without 5.4km of large diameter gravity sewer along with a new pumping
station, opportunities for future development and economic growth in the city and surrounds will be
significantly restricted.

Wangaratta: ($23.7m for 3250 new homes)
• Clarks Lane housing development ($7m for 350 new homes) A $7m investment in sewerage
treatment infrastructure will unlock 350 residential lots.
• South Growth Area ($9.1m for 700 new homes) Trunk drainage infrastructure to the value of
$4.4m together with main road infrastructure to the value of $4.7 with unlock 700 new
residential lots.
• North West Growth Area ($5m for 2,000 new homes) Trunk drainage infrastructure to the
value of $5m with help unlock 2000 new residential lots.
• Former Ovens College site ($2.6m for 200 new homes) A $2.6m investment in sewerage
treatment infrastructure will unlock 200 new dwellings.

Media: Emily Broadbent 0413 133 627

2024-25 Federal Budget Submission – Ensuring Victoria receives adequate investment

BACKGROUND

Regional Cities Victoria (RCV) is the peak body for regional Victoria, comprising of the 10 largest cities of Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool, and Wodonga. Collectively, these cities are home to more than 800,000 Victorians, and contribute to approximately 10 per cent of Victoria’s economy.

RCV is committed to strengthening our regional economies, encouraging sustainable growth, and maximising regional liveability. We want to help build a prosperous regional Victoria through investment in infrastructure and services that facilitate economic and social development.

Regional Victoria needs considered investment to underpin long-term economic prosperity and improve liveability in the regions. Challenges such as a lack of housing supply and workforce shortages need to be addressed in the short term to support regional Victoria’s growth.

RCV thanks the Albanese Government for recognising the need to strengthen its commitment to road safety with the announcement of a significant increase in the Roads to Recovery funding. We welcome the Albanese Government’s continued support of regional Australia and acknowledge the $1 billion investment made through the new Growing Regions Program and regional Precincts and Partnerships Program.

However, RCV feels regional Victoria is disadvantaged in its ability to access Federal funding due to the inability to obtain co-contributions through the Victorian Government, and the restrictive guidelines and competitive nature of these programs.

RCV will continue to work with and advocate to the Federal Government to ensure regional Victorians are not left behind – showcasing everything our regions have to offer and capitalising on people’s interest to live, work, and visit our cities.

REGIONAL INFRASTRUCTURE

Local infrastructure projects are a vital part of any regional community. They not only improve the liveability of regional cities and towns but also contribute to the local economy and create local jobs.

RCV was extremely disappointed by the Victorian Government’s decision to discontinue the Regional Jobs and Infrastructure Fund (RJIF) as part of the 2023-24 Budget. Without this funding stream there is no Victorian Government support available for local civic infrastructure projects in our growing regional cities, at a time when it is needed most.

In addition to this, a lack of Victorian Government grants makes accessing and leveraging the available Commonwealth funding for quality projects near impossible, due to long-standing cocontribution requirements. Regional Victorians will continue to miss out on their fair share of Commonwealth funding.

Councils are already facing budget constraints, having to operate in a tight fiscal environment and grapple with escalating costs and supply issues. Due to a lack of government support many local projects have been, or will be, put on hold.

Following the release of the Independent Review of the National Partnership Agreement on Land Transport Infrastructure Projects, RCV was disappointed to see funding removed for a series of projects in regional Victoria including the Geelong Fast Rail, stage 1 of the Shepparton Bypass and the Hume Freeway intersection upgrade in Wodonga.

The cancellation of projects in regional Victoria is disappointing for our cities and towns who are experiencing significant population growth. Without increased investment in roads and community infrastructure our regions risk falling behind, unable to provide adequate services to current residents and future generations.

RCV is calling on the Federal Government to provide a guarantee that 25% of all Commonwealth infrastructure funding allocated to Victoria is spent on initiatives and projects in the regions. Thus, providing the regions with a long-term funding guarantee and ensuring they can strategically manage the pipeline of future community infrastructure projects.

WATER INVESTMENT

RCV is home to many Victorian Basin communities, and we support the protection of the MurrayDarling Basin for future generations and a return of water to the environment.

However, Victoria has already delivered more water savings than any other state towards the Murray Darling Basin Plan, with a significant impact on our communities. RCV supports the Victorian Government’s position that any additional water recovery must not create further adverse socioeconomic impacts for Victorian farmers, communities, and consumers.

RCV believes further water recovery from Victorian irrigators – in the form of buybacks or on-farm projects – would result in greater adverse socio-economic impacts on regional Victorian communities who have already contributed more than 1,000 GL/yr in savings.

RCV calls on the Federal Government to increase investment in water efficiency projects specifically in regional Victoria, prioritising future investment into recycled water and stormwater infrastructure.

JOBS AND SKILLS

Demand for workers in regional areas is at an all-time high. RCV acknowledges the recent announcement from the Albanese Government to invest $12.6 billion to expand and transform access to the VET sector, support quality training and implement reforms to address critical skills needs.

The Victorian Skills Plan for 2023 into 2024 highlights that more than 75,000 new workers are expected in regional Victoria by 2026 – on top of the 60,000 jobs created across regional Victoria in the past 12 months.

Regional businesses and public sector organisations alike are suffering from skills and labour shortages across a range of sectors, including: hospitals and health services, aged care, early childhood education, food production, advanced manufacturing, statutory planners, and the hospitality sector (seasonal workforce).

Attracting and retaining skilled workers is a key challenge for businesses and organisations in regional Victoria, exacerbated by a shortage of housing and accommodation options.

RCV is seeking the Federal Government to streamline the Regional Sponsored Migration Scheme to enable it to be less complex and less expensive for the local government sector. The Regional Sponsored Migration Scheme plays an important role in attracting skilled workers to regional and rural areas. However, the process of sponsoring an employee is often a deterrent for Councils due to the complex, and often costly, nature of the process.

Furthermore, regional Victoria is specifically experiencing extreme challenges due to a state-wide shortage of planning staff. While all local governments are struggling to recruit and retain planners, regionally based Councils face additional barriers such as struggling to match the salaries offered in metropolitan roles or the private sector and the need to attract staff not only to the role, but to the region, when seeking to source staff from outside the area.

To address immediate shortages, RCV calls for the Federal Government to leverage skilled migration and establish a campaign to attract more planners to work in the regions. A 12-month international advertising campaign targeting planners will help to play an important role in addressing the current skill gap and workforce shortage.

CONCLUSION

RCV continues to provide strategic guidance to government on policy and investment decisions that impact regional Victoria. We thank the Federal Government for its continued support.

We urge the Government to increase its investment in key projects across regional Victoria and provide local government with the financial support necessary to ensure sustainable growth and development for our communities. This is specifically important given the pace of growth across regional Victoria.

We do not want to see the liveability of our regional cities falter. Regional Victorians, existing residents and new, deserve adequate access to affordable housing, open spaces and parklands, and cultural and community infrastructure. Should you require further information please contact the RCV Secretariat at rcv@cprcomm.com.au.

ACKNOWLEDGEMENTS

Regional Cities Victoria proudly acknowledges Victorian Aboriginal people as the first peoples and Traditional Owners and custodians of the land and water on which we rely. We acknowledge and respect that Aboriginal communities are steeped in traditions and customs built on an incredibly disciplined social and cultural order. This social and cultural order has sustained up to 50,000 years of existence.

Regional Cities Victoria recognises the barriers in striving for gender equality and the need to address these issues to ensure all Victorians live in a safe and equal society. We are committed to ensuring we seek to provide equal opportunities for women with sustained, enduring, and measurable action.

2024-25 State Budget Submission – Essential investment to ensure the regions are not left behind

BACKGROUND

Regional Cities Victoria (RCV) is the peak body for regional Victoria, comprising of the 10 largest
cities of Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta,
Warrnambool, and Wodonga. Collectively, these cities are home to more than 800,000 Victorians,
and contribute to approximately 10 per cent of Victoria’s economy.

RCV is committed to strengthening our regional economies, encouraging sustainable growth, and
maximising regional liveability. We want to help build a prosperous regional Victoria through
investment in infrastructure and services that facilitate economic and social development.

Regional Victoria needs considered investment to underpin long-term economic prosperity and
improve liveability in the regions. Challenges such as a lack of housing supply and workforce
shortages need to be addressed in the short term to support regional Victoria’s growth.

While we acknowledge the Victorian Government’s $2 billion Regional Investment Package,
announced upon the cancelation of the 2026 Commonwealth Games, its focus on social housing and
sporting infrastructure does not meet the breadth of local infrastructure needs across the regions.

RCV will continue to work with and advocate to the Victorian Government to ensure regional
Victorians are not left behind – showcasing everything our regions have to offer and capitalising on
people’s interest to live, work, and visit our cities.

REGIONAL INFRASTRUCTURE FUND

Local infrastructure projects are a vital part of any regional community. They not only improve the
liveability of regional cities and towns but also contribute to the local economy and create local jobs.

RCV was extremely disappointed by the Victorian Government’s decision to discontinue the Regional
Jobs and Infrastructure Fund (RJIF) as part of the 2023-24 Budget. For almost two decades, regional
Councils and businesses have had access to more than $100 million each year through RJIF. Councils
have previously funded vital projects such as The Ballarat Community Hub, a new warehouse for
Shepparton Foodshare, and town centre revitalisations in several regional cities through RJIF.

Without this funding stream there is no Victorian Government support available for local civic
infrastructure projects in our growing regional cities, at a time when it is needed most. Councils are
already facing budget constraints, having to operate in a tight fiscal environment and grapple with
escalating costs and supply issues. Due to a lack of government support many local projects have
been, or will be, put on hold.

In addition to this, a lack of Victorian Government grants makes accessing and leveraging the
available Commonwealth funding for quality projects near impossible, due to long-standing cocontribution requirements. Regional Victorians will continue to miss out on their fair share of
Commonwealth funding.

RCV is calling on the Victorian Government to provide certainty for the regions by reinstating the
Regional Infrastructure Fund, providing a $300 million commitment over 4 years. It is proposed the
fund is set-up as it has been in the past, as a competitive program with grants considered between
$20,000 and $3 million.

HOUSING AND PLANNING

A shortage of housing is the most critical issue currently facing regional Victoria. RCV welcomes the
Victorian Government’s Housing Statement which seeks to make it quicker and easier for people to
build new homes. It is imperative that local government is engaged, and the voices of local
communities continue to be respected.

Improvements in regional planning matters can have a substantial and positive impact on the
delivery of infrastructure and housing projects and lead to better outcomes.

RCV acknowledges the need to ensure further land supply is unlocked, and local government must
play its role in this. However, a lack of enabling or trunk infrastructure, particularly in greenfield
‘pioneer developments’ on the outskirts of regional cities, is ultimately deterring the development of
local industry and private investment in the regions, posing an immediate challenge.

The Housing Statement commits to providing quicker water connections by revising statements of
expectations to water corporations to “strengthen the need to engage with developers and local
councils early and regularly through the permit process”. However, this does not address the need
to fund this new infrastructure nor address the inability of these costs to be recovered through
Development Contribution Plans.

RCV calls for the establishment of a $250 million Growing Regions Development Fund, to provide
enabling or trunk infrastructure in regional cities and ensure key utilities and services such as
water and sewage are delivered to unlock new housing stock. The cost of this Fund could be
partially offset using the proceeds of the Windfall Gains Tax.

Furthermore, RCV is seeking an amendment to allow Development Contribution Plans to include
water and sewage costs. Currently, only infrastructure such as roads and drainage are eligible to be
funded through Development Contribution Plans, which has proven to be limiting for our regional
cities. Expanding Development Contribution Plans to include water and sewage will speed up
delivery of these connections, address the Essential Services Commission’s concern to protect the
interests of existing customers of water corporations, and encourage further housing development.

JOBS AND SKILLS

Demand for workers in regional areas is at an alltime high.

Regional businesses and public sector organisations alike are suffering from skills and labour
shortages across a range of sectors, including: hospitals and health services, aged care, early
childhood education, food production, advanced manufacturing, statutory planners, and the
hospitality sector (seasonal workforce).

The Victorian Skills Plan for 2023 into 2024 highlights that more than 75,000 new workers are
expected in regional Victoria by 2026 – on top of the 60,000 jobs created across regional Victoria in
the past 12 months.

Attracting and retaining skilled workers is a key challenge for businesses and organisations in
regional Victoria, exacerbated by a shortage of housing and accommodation options.

To address immediate shortages, RCV calls for the establishment of a Critical Worker Retention and
Relocation Fund. It is proposed the fund provides financial incentives to attract suitably qualified
workers to fill vacancies for key roles in regional Victoria, offering annual retention payments after
the second, third, and fourth year of employment. The proposal is modelled on the Victorian
Government’s initiative that bridges the divide between the regions and the city by financially
incentivising teachers to relocate to hard-to-staff positions in country schools.

To address the higher-skill set required of Victoria’s future workforce, the Victorian Government is
collaborating with training providers and industry and has expanded Free TAFE – allowing all
Victorians tuition-free training across more than 80 courses in priority areas, even if they already
hold a separate qualification.

To support the tens of thousands of additional Free TAFE places, RCV calls for a Regional TAFE
Redevelopment and Technology Capability Program, to fund the capital projects needed to upskill
Victorians, with campuses relocated into the heart of regional city centres, additional classrooms
and teaching spaces, new equipment and better digital capability, and consolidated trade training
centres and industry hubs.

This program would also support the establishment of more Education First Youth Foyers, which
provide on-campus accommodation to support young people aged up to 24 years who want to study
at TAFE but are homeless or are at risk of experiencing homelessness.

CONCLUSION

RCV continues to provide strategic guidance to government on policy and investment decisions that
impact regional Victoria. We thank the Victorian Government for its continued support.

We urge the Government to increase its investment in key projects across regional Victoria and
provide local government with the financial support necessary to leverage additional
Commonwealth investment, to ensure sustainable growth and development for our communities.
This is specifically important given the pace of growth across regional Victoria.

We do not want to see the liveability of our regional cities falter. Regional Victorians, existing
residents and new, deserve adequate access to affordable housing, open spaces and parklands, and
cultural and community infrastructure.

Should you require further information please contact the RCV Secretariat at rcv@cprcomm.com.au.

ACKNOWLEDGEMENTS

Regional Cities Victoria proudly acknowledges Victorian Aboriginal people as the first peoples and
Traditional Owners and custodians of the land and water on which we rely. We acknowledge and
respect that Aboriginal communities are steeped in traditions and customs built on an incredibly
disciplined social and cultural order. This social and cultural order has sustained up to 50,000 years
of existence.

Regional Cities Victoria recognises the barriers in striving for gender equality and the need to
address these issues to ensure all Victorians live in a safe and equal society. We are committed to
ensuring we seek to provide equal opportunities for women with sustained, enduring, and
measurable action.

Regional Victorians deserve a share of Federal funding

Regional Cities Victoria (RCV) has called on the Albanese Government to provide a guarantee that 25 per cent of all Commonwealth infrastructure funding allocated to Victoria is spent on initiatives and projects outside Melbourne.

With 1 in 4 Victorians living in regional Victoria, the 10 largest regional cities – Ballarat, Bendigo, Geelong, Horsham, Latrobe, Mildura, Shepparton, Wangaratta, Warrnambool and Wodonga – are collectively home to more than 800,000 people.

RCV Chair, Cr Shane Sali said regional Victoria needs considered investment to underpin long-term economic prosperity and improve community infrastructure and services.

“Local infrastructure projects are a vital part of any regional community. They not only help maintain services, improve transport options, and make our regional cities and country towns better places to live – they also create jobs for locals and boost the national economy.

“Whether its upgrading municipal main roads in growing regional cities, building community hubs and libraries, new parks and recreational centres, or improving public transport, regional Victorians deserve their share of the Federal infrastructure funding allocated to Victoria.”

Cr Sali said while RCV acknowledges the Albanese Government’s $1 billion allocation for regional Australia made through the Growing Regions Program and Precincts and Partnerships Program, it feels regional Victoria is disadvantaged by these competitive schemes because Councils in regional Victoria cannot access compulsory co-contributions from the Victorian Government.

“We were gutted when funding was removed for a series of projects across regional Victoria – like the Geelong Fast Rail, stage 1 of the Shepparton Bypass, and the Hume Freeway intersection upgrade in Wodonga,” Cr Sali said.

“Regional Victorians shouldn’t be denied their share of funding from the Albanese Government simply because Victoria abolished its Regional Jobs and Infrastructure Fund.

“Our regional cities and towns are experiencing significant population growth and are desperate for jobs and investment. Without infrastructure funding, regional Victoria risks falling behind, unable to provide adequate services to current residents and future generations,” Cr Sali said.

Media contact: Emily Broadbent 0413 133 627