Our new research found Australia is spending $1 billion less on maintaining roads than we need – and the biggest reason for that gap is federal funding.

[Roads] are getting worse because we’re not spending enough to maintain them.

Three-quarters of our roads are managed by local councils.

Every year, those councils spend A$1 billion less on maintenance than is needed to keep those roads in their current condition – let alone improve them.

New Grattan Institute research finds the typical regional area has a funding shortfall of more 40%. In remote areas, it’s more than 75%.

One reason for this underspend is that untied federal government grants to local councils haven’t kept pace with soaring costs.

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Tight budgets make it tempting to delay maintenance.

But delaying will only end up costing more in the long run, leaving taxpayers paying more to fix more badly damaged roads.