Introduction

Australian local government plays a pivotal role not only as a major element in the democratic structure of the country (Brackertz, 2013), but also as a significant economic entity in its own right. As the third tier of government in the Australian federation, local government accounts for more than AUD10 billion in taxation, employs in excess of 192,000 people across eight different state and territory systems, and provides an essential range of local services vital to national well-being (Australian Government, 2010). However, despite its importance, comparatively little scholarly attention has focused on local government; it has always been the ‘poor cousin’ of its national and state counterparts in terms of the analytical attention that it has received in the academic literature (Dollery et al, 2006a). This is regrettable for various reasons, not least because local governments across all states and territories face daunting problems that require urgent attention.

At least three factors have combined to place contemporary Australian local government in a difficult position. In the first place, intensifying financial pressures mean that the status quo simply cannot be sustained indefinitely. Given these pecuniary pressures, and the political imperatives to maintain the level of current service provision, existing arrangements have only been maintained at the cost of steadily depreciating physical infrastructure, leading to the growth of a massive local infrastructure backlog (Byrnes et al, 2008; Dollery et al, 2013).

Second, changes in the respective enabling legislation governing the different Australian local government systems have seen an extension of the role of local government and growing complexity in its relationships with state and federal governments (Dollery et al, 2006b). Moreover, differences in the functions and responsibilities of the various state and territory municipal systems have widened over time, and the state government oversight mechanisms are now often quite dissimilar, diminishing the prospects of a uniform national approach to local governance (Dollery et al, 2010). An uneven devolution of additional functions to local government within and between the different states and territories further complicates an already disjointed network of intergovernmental relations (Australian Government, 2010).

Third, state and territory governments across Australia remain concerned over the operational efficiency of municipalities, particularly small regional, rural and remote councils (Dollery and Crase, 2004).