As the ALGA National General Assembly wraps up in Canberra this Thursday, more than 1,000 local government leaders are heading home with a clearer sense of the scale of what is being asked of their communities and their councils, and what support they need to get the job done.
It is a timely moment to reflect on the critical role local governments play not just in delivering services, but in shaping the economic transitions that will define regional Australia and our macro-economy for decades to come…
Regional local governments are central to Australia’s economic transition and critical to ensuring change benefits their communities. Strengthening their capacity to plan, collaborate and create new opportunities will support transformational change in their regions for generations.
Councils do far more than deliver infrastructure and essential services. Across Australia, local governments:
- Underpin local economies and community wellbeing
- Bring people together and advocate for their communities
- Support local development and represent community interests
They also remain on the frontline of compounding pressures. Alongside communities, households and businesses they are feeling the impact of a range of moving pressures including but not limited to:
- More frequent extreme weather events
- Housing pressures and global market volatility
- National industry transitions and economic disruption
Local government is often left acting as a ‘service provider of last resort’ ALGA noted in their Adapting Together Report in 2025, absorbing the consequences of forces largely outside their control.
We hear from councils that the ask keeps growing, but the tools and resources haven’t kept pace. Outdated funding models and legislative frameworks mean councils are expected to do more with less, requiring new capabilities to:
- Manage change and reduce risks to services
- Respond early to forces shaping local growth and productivity
- Build resilience across their communities
“Supporting locally designed solutions to complex problems is increasingly vital,” says The Next Economy’s Jacqui Bell.
“While small rural local governments do not control all factors, they play a key role alongside other governments, community organisations, volunteers and local businesses in shaping a strong, sustainable future.
“There is an imperative for local governments to continue to evolve into capable, collaborative and future-ready institutions. This means moving beyond traditional service delivery to deeper partnership with residents, businesses and institutions.
“It also looks like developing strategic foresight capabilities, fostering innovation, making decisions based in evidence, acting early to mitigate and minimise impacts to services. Also, doing economic development differently in ways that build local wealth as well as respond to trends and pressures that impact growth, markets and productivity across the local economy.
“Continued advocacy, attracting aligned investment and partnerships, and using policy and regulation to support a resilient, low-emissions economy will also be critical, alongside clear mandates and as we’ve seen today with ALGA’s emergency motion – adequate funding from state and national governments.”
There are many examples of the wide ranging and evolving roles and needs of councils across Australia – all are leading on regional collaboration, engaging with business and community early, undertaking climate resilience planning and co-designing place-based solutions.
“All of these show that local government can be both a stabilising force and a catalyst for transformation,” Jacqui notes.
A few recent examples from the work The Next Economy has engaged with include:
South West Queensland launches economic blueprint for future
South West Queensland is thinking differently about future opportunities and how the region participates in a future economy, launching a Future Economy Strategy.
What if economic development starts with the wrong question?
TNE program director Jacqui Bell joined economic development practitioners from across NSW to explore what a wellbeing economy looks like in practice, and what the Hay community’s approach to transition can teach the rest of us.
Community insights for Uralla Shire’s energy future
Working with Uralla Shire Council, The Next Economy engaged more than 150 residents to understand what matters most to them as large-scale renewable energy development takes shape in NSW’s New England region. The insights paper sets priorities for housing, services, jobs and nature to ensure fair outcomes as change accelerates.
















