Rural Councils Receive Significantly Less Funding for Local Roads Despite Larger Road Networks

Strategic Insights -

Rural councils in Victoria are receiving significantly less funding for local roads compared to their inner city counterparts, despite having larger road networks and limited revenue-generating capacity. The disparity in funding has sparked concerns among rural officials, who argue that their communities need better roads, not slower ones. According to the 2025-26 Victorian Local Government Grants Commission annual allocation report, Melbourne City Council received a grant allocation of $971,794 for roads, while rural councils such as Yarriambiack and Buloke received significantly lower allocations.

Key Takeaways:

  • Rural councils receive up to $3300-per-kilometre less in federal government funding for local roads compared to inner city councils.
  • Melbourne City Council has a budget of $732m for 2025-26, while Yarriambiack Council has a total budget of $13.4m.
  • Melbourne City Council is allocated $3982/km for local roads, while Yarriambiack Council receives $584/km and Buloke Council receives $629/km.
  • Rural councils have large road networks, small populations, and limited capacity to generate additional revenue.
  • Opposition regional development spokeswoman Anne Webster argues that the funding discrepancy is "infuriating and very concerning", and that Labor needs to spend more on fixing rural roads.
  • Rural Councils Victoria deputy chair Kate Makin emphasizes that rural communities need better roads, not slower ones.

Statistics:

  • Melbourne City Council received a grant allocation of $971,794 for roads in 2025-26.
  • Yarriambiack Council has a total budget of $13.4m and receives $584/km in local road grants.
  • Buloke Council has a total budget of $21.4m and receives $629/km in local road grants.
  • Rural councils such as Yarriambiack and Buloke have road networks that account for 85% and 89% of Victoria's rural road mileage, respectively.
  • The federal government committed "over $3.4 billion to local governments through the financial assistance grant program".

Sources:

  • The Weekly Times, citing the 2025-26 Victorian Local Government Grants Commission annual allocation report
  • Opposition regional development spokeswoman Anne Webster, as quoted in The Weekly Times
  • Rural Councils Victoria deputy chair Kate Makin, as quoted in The Weekly Times
  • A spokeswoman for Regional Development Minister Kristy McBain, as cited in The Weekly Times