The federal government has blindsided Queensland councils with a surprise Friday afternoon proposal to cut its average disaster recovery funding contribution from 64% to a 50-50 split.

LGAQ CEO Alison Smith joined Dean & Sofie on 4BC Breakfast to warn that because local governments already receive a tiny fraction of total tax revenue, this funding shortfall will desperately pressure councils to raise household rates or lean heavily on the state government to fill the void.

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