Following recent High Court cases, including the successful challenge to the national school chaplaincy program, the local government sector has expressed concerns about the security of the funding. Prime Minister Julia Gillard will announce a referendum on constitutional recognition for local government at the federal election. Credit:Scott Gelston The Constitution, enacted in 1900, does not mention the role of local government. Legislation to change the Constitution is due to come before federal parliament next week. Prime Minister Julia Gillard and Local Government Minister Anthony Albanese announced the plans in Brisbane on Thursday. Ms Gillard told reporters in Brisbane that the Constitutional change would not affect states' ability to legislate for local government.

She said there had been a ''very meticulous'' process leading up to the announcement. ''This is a big thing to do,'' she said. A referendum on the recognition of local government was part of the agreements the Gillard government made with the Greens and independent MP Tony Windsor in 2010. Greens leader Christine Milne said she was delighted it was going ahead, adding it would recognise what already happened. "We need a tripartite response. We need all sides of politics out now campaigning for a yes vote," she said.

Ms Gillard said that Opposition Leader Tony Abbott had indicated that he would support the referendum. Funding for the vote would be ''worked through'', she said. High court concerns Constitutional lawyer George Williams said a new problem had arisen that affected local government funding. ''Any direct federal funding to local government is in question over any subject,'' he said.

The two recent High Court cases, including the schools chaplains case, had ''dramatically changed the landscape'' when it came to what the Commonwealth was allowed to fund. ''The Commonwealth can only fund areas over which it's got power in the Constitution,'' Professor Williams said. ''Local government is an area normally controlled by the states.'' Professor Williams said that a small ''mechanical'' change would ensure that funding could continue. But he said the referendum would only succeed if there was strong support from the Coalition. Professor Williams said while he thought the government should have done more work earlier on the referendum campaign, it could still succeed.

Mr Abbott has previously given in-principle support to the recognition of local government but some Coalition MPs have raised doubts over the timing of the referendum. In a dissenting comment in a parliamentary committee report in March, Coalition MPs said there was not enough time to campaign for a successful vote in September. ''Coalition members are now of the opinion that the time remaining between now and the nominated election date of 14 September 2013 is insufficient to put in place all the necessary mechanics, formal, informal and partisan education campaigns and to otherwise ensure an informed outcome for the referendum question,'' Senator David Bushby, Senator David Fawcett and MP Steve Irons said. Nationals senator Barnaby Joyce said that the referendum was needed but that it was going to fail, ''because it's run by a chaotic government''. He told Fairfax Media's Breaking Politics program on Thursday that time, money and support from the states were all needed.

''What I'm worried about is that we're going to fluff this. And when fluff it, instead of going one step forward we go 10 steps backwards,'' Senator Joyce said. Building support The move had already been recommended by a parliamentary committee earlier this year and an expert panel, led by former judge Jim Spigelman, concluded in 2011 that financial recognition was viable within the 2013 timeframe. It has also been welcomed by the the Australian Local Government Association, who say a yes vote is ''vitally important'' so federal money can flow through to local communities. ''This is about money for local communities for the services that they so badly need,'' President Felicity-ann Lewis told ABC Radio on Thursday.

Mayor Lewis acknowledged that with only four months to go until the election, time was running out to garner the support required. ''Of course we're concerned about the timeframe,'' she said. ''We know we're under the pump for this. But this is our best shot.'' Australia does not have a strong history of supporting referendums. Similar attempts to recognise local government in 1974 and 1988 were not successful and only eight referendums out of 44 have been successful since 1906. Last year, the Gillard government decided to postpone plans to hold a referendum on the constitutional recognition of indigenous Australians in 2013. Indigenous Affairs Minister Jenny Macklin explained that there was not enough community awareness and the government did not want the vote to fail.

The government says it expects its local government referendum will receive ''broad and bipartisan support in the federal parliament and across the country''. Some states, including Victoria and Western Australia, have previously indicated they oppose the move. Mayor Lewis said she was not sure how hard states would campaign for a ''no'' vote but said the referendum was not about undermining state government powers. Follow the National Times on Twitter