COVID-19 National: Councils – Local Roads and Community Infrastructure Program

This program aims to support local councils to deliver priority local road and community infrastructure projects across Australia, supporting jobs and the resilience of local economies to help communities bounce back from the COVID-19 pandemic. It forms part of the Australian Government’s wider economic response to COVID-19.

The program will be delivered in two phases:
1. Phase 1
- Funding allocations for Phase 1 are determined by formula and take into account road length and population.
- It will be delivered under Outcome 3 of the Department’s Portfolio Budget Statement: Strengthening the sustainability, capacity and diversity of our cities and regional economies, including through facilitating local partnerships between all levels of government and local communities; through reforms that stimulate growth; and providing grants and financial assistance.
- The formula used to calculate a Nominal Funding Allocation has been modelled on funding allocations under the Roads to Recovery Program (R2R) and the local road component of the Financial Assistance Grants Program.
- Applications opened on 1 July 2020 and close 31 December 2021.

2. Phase 2
- Funding allocations for Phase 2 are determined by formula and take into account road length and population.
- It will be delivered under Outcome 3.2 of the Department’s Portfolio Budget Statement 2020-2021: The local government program supports regional development and local communities through delivery of policy advice to the Australian Government and financial assistant to local governments to strengthen local government capacity and better support local communities.
- The formula used to determine the Phase 2 allocations will comprise of two parts with the following weighting, added together:
a) One third of the allocation calculated using the existing LRCI formula (based on the Roads to Recovery Program (R2R)).
b) Two thirds of the allocation based on council population size.
- Applications opened on 14 December 2020 and close on 31 July 2021. Councils will be able to access funding under Phase 2 from 1 January 2021.

Co-contributions are not required under the program, but are allowed to be used for projects.

The Australian Government has announced total funding of $1 billion over two years, providing $500 million in 2020-21 and $500 million in 2021-22 for Phase 2 of the LRCI Program.

Eligible applicants include:
- All local councils in Australia.
- The ACT Government in lieu of a system of local government.
- Relevant State government, the shires of Christmas Island, Cocos (Keeling) Islands and Norfolk Island and the Lord Howe Island Board that provide local council services to ‘unincorporated areas’ in Australia.
- The NT Government for areas that were unincorporated until 2008 but are yet to transferred to the new councils.
- The Victorian Department of Environment, Land, Water and Planning for the French Island.

Eligible projects include:
1. Local road projects - those that involve the construction or maintenance of roads managed by local governments. This could include projects involving any of the following associated with a road:
- Traffic signs
- Traffic control equipment
- Street lighting equipment
- A bridge or tunnel
- A facility off the road used by heavy vehicles in connection with travel on the road (for example, a rest area or weigh station)
- Facilities off the road that support the visitor economy
- Road and sidewalk maintenance, where additional to normal capital works schedules

2. Community infrastructure projects - those that involve the construction, maintenance and/or improvements to council-owned assets (including natural assets) that are generally accessible to the public. Examples of eligible works include:
- Closed Circuit TV (CCTV)
- Bicycle and walking paths
- Painting or improvements to community facilities
- Repairing and replacing fencing
- Improved accessibility of community facilities and areas
- Landscaping improvements, such as tree planting and beautification of roundabouts
- Picnic shelters or barbeque facilities at community parks
- Playgrounds and skate parks (including all ability playgrounds)
- Noise and vibration mitigation measures
- Off-road car parks (such as those at sporting grounds or parks)

Projects that involve the construction, maintenance and/or improvements to State/Territory and crown owned land/assets and Commonwealth owned land/assets, can also be eligible projects where the Council can confirm that they have the authority of the land or asset owner to undertake the project at the nominated site(s) and the sites are accessible to the public (including natural assets).

The following are ineligible for funding:
- Costs incurred in the preparation of a Work Schedule or related documentation.
- General administrative overheads and staff salaries not connected with eligible projects funded under the program.
- Subsidy of general ongoing administration of an organisation such as electricity, phone and rent.
- Projects that receive Australian, State or Territory government funding for the same purpose, unless otherwise agreed by the department.
- Commencement ceremony, opening ceremony or any other event associated with eligible projects.
- Transport planning studies.
- Road rehabilitation studies (if not part of an eligible project).
- Community/public art.

Please refer to the Guidelines for the complete list of restrictions.