An Evaluation of the Financial Sustainability of Remote Australian Local Councils*

Abstract

Spatial remoteness in the sense of great distances between population centres and limited access to public services is an on-going problem in Australian local government, where there exist large, sparsely populated regions dominated by the 'tyranny of distance'. From a public policy perspective, it is important to understand the impact of remoteness on local authorities. Accordingly, in this paper, we estimate the relationship between remoteness and financial sustainability using a 2014–2018 sample of Australian local governments. In general, we find only limited empirical evidence for a relationship between geographical remoteness and financial sustainability as we have proxied it.