Draft report

Local government funding and financing


The Productivity Commission's draft report on local government funding and financing is available here.

The draft report makes 67 findings, 30 recommendations and asks eight questions. Testing the ideas and recommendations in this report is an important next step in our inquiry. We invite you to review the draft report and share your feedback by making a submission. Submissions are due by 29 August 2019.

Draft report


  • Our brief
    16 July 2018
  • Issues paper
    6 November 2018
  • Submissions closed 15 February 2019
  • Draft report
    4 July 2019
  • Submissions open
  • Submissions due 29 August 2019
  • Final report
    30 November 2019
  • Evaluation
    December 2019
  • Government response

Key findings

The Commission finds that the current funding and financing framework measures up well against the principles of a good system. The current system, based on rating properties, is simple and economically efficient, compared to alternatives. We recommend that the current system should therefore remain as the foundation of a fit-for-purpose future funding and financing system for local government.

However, councils need new tools to help them deal with some specific cost pressures. New funding tools are required in four areas:

  1. Supplying enough infrastructure to support rapid urban growth;
  2. Adapting to climate change;
  3. Coping with the growth of tourism; and
  4. The accumulation of responsibilities placed on local government by central government.

There is also significant scope for councils to make better use of existing funding, and improve their organisational performance, productivity and decision making.

Please see below for useful documents on the draft report, including summary documents and commissioned expert reports.