Local governments and road funds distribution

Local roads form a major part of the Australian road network. Local government authorities are usually responsible for constructing and maintaining local roads although significant proportion of funding is provided by the Commonwealth and State governments. Because of high community interest and key economic role of roads, the construction and maintenance of roads have remained a major undertaking of local government authorities since their inception. However, the functional classification of roads and consequently the responsibilities of different levels of government for construction, maintenance and funding of local roads in each state are quite confused and imprecise. This paper reviews the current involvement of various governments and funding of local roads in Australia during past ten years and describes a model of road funding for local roads.