Published on Wednesday, 18 February 2026 at 1:18:57 PM
Media Release - 18th February 2026
Regional Communities Impacted by Forest Products Commission Rates Arrangements
The Warren Blackwood Alliance of Councils (WBAC), together with the Shires of Cranbrook and West Arthur, is raising community awareness about the significant impact on local services following the Forest Products Commission’s (FPC) decision to cease paying rates directly to local governments.
The FPC has advised that it will no longer remit rates to Shires, with rates-equivalent payments instead being made to State Treasury. As a result, local governments across the Warren Blackwood region are facing the loss of substantial annual rate revenue that has historically supported essential community services and infrastructure.
For the 2025–26 financial year alone, the collective shortfall across the seven affected Shires is approximately $325,000. For small regional councils, this represents a significant proportion of their annual rates base.
These funds are not discretionary income. They directly support core services including road maintenance, verge upkeep, parks and gardens, community facilities, emergency services support, recreation programs and local events.
The loss of revenue is already forcing councils to consider difficult decisions, including:
- Reductions to road grading and verge maintenance programs
- Cuts to parks, gardens and community facility upkeep
- Cancellation or suspension of community grant programs
- Withdrawal of financial support for major local events, youth initiatives and seniors’ programs
- Reduced capacity to co-fund State and Federal grants
- Increased pressure on remaining ratepayers to absorb rising infrastructure costs
While the immediate impact for 2025–26 is significant, councils are particularly concerned about the forward trajectory. The FPC has an ongoing land acquisition and plantation expansion program, and as additional properties transition out of the local rates base, the financial impact on Shires will continue to grow unless a sustainable funding mechanism is established.
WBAC Chair and Shire of Donnybrook Balingup President Cr Vivienne MacCarthy said the issue is not about opposition to forestry, but about ensuring fairness and long-term financial sustainability for regional communities.
“Our councils maintain the roads, emergency access, fire mitigation and community infrastructure that plantation operations rely on,” Cr MacCarthy said.
“When rates revenue is removed from local government budgets, it directly impacts our ability to maintain those services. In some cases, councils are now having to consider reducing or delaying community activities and projects.”
The situation also creates inequity, as private plantation operators continue to pay rates directly to local governments, while the FPC does not.
WBAC and the affected Shires are working with the Hon Jackie Jarvis MLC, Minister for Forestry, to find a fair and practical solution that ensures impacted councils receive appropriate revenue to support their communities.
“We appreciate Minister Jarvis’ willingness to engage with us,” Cr MacCarthy said. “We are confident that through collaboration we can identify a solution that recognises both the importance of the forestry sector and the financial sustainability of regional local governments.”
Regional councils remain committed to working in partnership with the State Government to secure a long-term arrangement that restores fairness and protects essential community services.
- ENDS -
For further information, please contact:
Katie McDonnell
Executive Officer, Warren Blackwood Alliance of Councils
media@wbac.net.au
For comment, please contact:
Cr Vivienne MacCarthy
Chair, Warren Blackwood Alliance of Councils
0474 846 510
vivienne.maccarthy@donnybrook.wa.gov.au
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