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Keywords:

  • Local government funding;
  • Roads to Recovery;
  • revenue-shifting

The Roads to Recovery (R2R) Program is an Australian Government policy which has provided billions of dollars to local government for local roads investment and maintenance. The R2R Program is controversial insofar as it may be unconstitutional and it may not have delivered “value for money”. This article evaluates the R2R Program taking into account evidence from the Australian National Audit Office Report Management of the AusLink Roads to Recovery Program. This Report found that local government had engaged in “revenue-shifting” by substituting Commonwealth funds for its own hypothecated expenditure on local roads. This had partly undermined the intended benefits of the R2R Program.