Financial sustainability

The Growing Suburbs Fund was established in 2015 and since then, Council has received approximately $50 million for more than 40 projects worth over $150 million including community centres, parks, playgrounds, leisure centres and botanic trails.

This funding enables Council to deliver critical social and community infrastructure sooner. The Growing Suburbs Fund was originally a $50 million funding pool, progressively reduced to $25 million, $10 million and $5 million then de-funded in the 2025/2026 Victorian State Budget.

This means that Council needs to find additional funding to deliver critical social and community infrastructure. The pressures on growth areas have not diminished with the new housing targets in established areas as growth areas provide diversity and affordable housing options.

Council seeks the reinstatement of the Growing Suburbs Fund at $50 million to meet the infrastructure needs in growth areas. 

The City of Melton is a top contributor of GAIC funds collected by the Victorian Government but has the lowest percentage return of funds invested in community and transport infrastructure. Council is seeking a review of the GAIC fund that includes a guaranteed percentage of funds directed to local community projects and transparency of the decision-making of funding allocations.  The original intention was for funds to be allocated in the areas where they are collected; however, the City of Melton is yet to receive its full allocation.

As a result, City of Melton residents are awaiting major infrastructure projects and operational services long after they have moved into the new estates.

Melton City Council seeks:

• a clear plan as to how the $191 million shortfall is going to be invested in our community
• a percentage of the GAIC and Windfall Gains Tax to be allocated to councils from the LGA where funds are collected to cover gaps in funding for major community infrastructure such as leisure centres and libraries
• implementation of Infrastructure Victoria’s Strategic Plan recommendations and the Outer Metropolitan Council’s pool and libraries campaign, seeking a funding model for building community infrastructure that shares investment equally between the Australian Government, Victorian Government and local councils. 

Melton City Council acknowledges and appreciates the significant allocation of $28.38 million under the 2025/26 Financial Assistance Grants program. This places Melton among the top-four funded councils in Victoria, alongside Casey, Wyndham and Greater Geelong — each recognised for their scale, rapid population growth and extensive infrastructure responsibilities.

The size of the City of Melton’s allocation reflects the recognition of the city’s unique position as one of Australia’s fastest-growing municipalities, with new communities expanding across multiple precincts each year. The grant remains an essential component of Council’s financial base, helping sustain core services, maintain an expanding local road network, and manage demand for community infrastructure across a population that continues to grow faster than the state average.

However, while the Financial Assistance Grants provide a vital platform for service delivery, they are not designed to fund growth infrastructure. For council areas like the City of Melton, where the capital and service demands of new suburbs precede the maturing of the rate base, the grants alone cannot close the substantial funding gap. Council supports the Australian Local Government Association’s campaign to increase the Financial Assistance Grants to one per cent of Commonwealth taxation revenue. This will help deliver the local services and infrastructure that our community need. 

Council requests a review of the cost shifting that has occurred for services including maternal child health, school crossing supervisors and aged care for an equitable rebalance. For long-term sustainability of service delivery, an equitable approach to funding these community services is needed.

Consideration is also required for the review of developer contributions to reduce the shortfall in funding key community infrastructure projects.