September 25 2026
Councils have endorsed a national call for stronger and more sustainable funding for Local Governments to meet the escalating costs of climate change, during the annual general meeting of the Western Australian Local Government Association last week.
The insured costs of climate disasters are now twelve times higher than twenty years ago, while local government revenue has grown only three times over the same period. A national push for a Climate Compensation Fund seeks to address this imbalance giving councils the resources to manage climate damage and help their communities thrive. WALGA voted to show their agreement that a reliable funding stream with concrete revenue sources is needed, but didn’t join the call for polluters to pay for it.
“The growing costs of climate impacts should not continue to fall disproportionately on councils, communities and ratepayers. A more sustainable financial model is needed in order for councils to meet their increasing obligations,” said Alison Xamon, Mayor of Vincent Council.
“For Vincent, climate costs are stacking up. We’re faced with the challenge of reducing urban heat through increasing tree canopy while responding to the ongoing impacts of tree-killing shot-hole borer bugs and reduced rainfall. And the city’s aging drainage network needs upgrading in the face of worsening floods and extreme weather events.
“Unlike other tiers of government with greater capacity to raise revenue, Local Governments have finite resourcing to adequately fund this without impacting on the delivery of essential services or significantly increasing rates. This is neither fair nor sustainable.”
The successful motion supports the Australian Local Government Alliance’s call for the Federal Government to establish a Parliamentary Inquiry into the adequacy of the 2025 National Adaptation Plan, create a dedicated funding stream for Local Governments that matches the scale of financial risks identified in the 2025 National Climate Risk Assessment. But falls short of supporting ALGA’s ask that the government consider taxes or levies on the coal, oil and gas industries aligned with the damage their products cause, to finance the fund.
“Local Governments, residents and local businesses are already bearing significant costs through rising insurance premiums, damage to community infrastructure, and disaster response and recovery efforts,” said Julia Jean-Rice Shire President at Augusta Margaret River.
“While climate change affects everyone, we are concerned that those experiencing the greatest impacts have often contributed the least to the problem.
“We know that the majority of Australians support placing a levy on major polluters to fund community needs. And without significant new forms of revenue, the costs of climate disasters will increasingly be borne by regional and local communities.”
Between 2019 and 2023, more than 80 per cent of Australia's local councils faced climate disasters. Nationally, fires, floods and cyclones cost Australia $38 billion per year, predicted to rise to $73 billion by 2060.
The motion builds on both national local government advocacy through ALGA – which voted unanimously to support a National Climate Compensation Fund in July – and WALGA’s recently strengthened climate change advocacy position.
MEDIA CONTACT: Laura Corrigan, Media Advisor, Climate Media Centre – 0423 690 152 – [email protected]
