Capital cities powering Australia’s future

Published on 05 September 2025

Hobart Lord Mayor Anna Reynolds has gathered with other leaders at the Council of Capital City Lord Mayors (CCCLM) Annual General Meeting in Sydney today, highlighting the crucial role capital cities play in advancing Australia’s economy and fostering innovation.

The meeting coincides with the recent release of the CCCLM-commissioned report Why Cities Matter, which reveals that while capital city centres occupy just 0.03% of Australia’s landmass, they generate 22.5% of national GDP and sustain more than 3.2 million jobs.

The report identifies five essential roles for capital cities: knowledge generation, productivity, exports, skilled labour access, and national coordination.

It also highlights challenges such as underfunded local governments and infrastructure strain.

The CCCLM AGM and Why Cities Matter Report, follows Hobart’s own State of the City event held last month, where the City outlined its economic priorities – including the creation of an Innovation Precinct, support for new industries, and smarter infrastructure planning.

Quotes to be attributed to Hobart Lord Mayor Anna Reynolds:

“Capital cities like Hobart are delivering results that far exceed their size.

“We are hubs of innovation, productivity, and opportunity – and we need the right support to keep delivering for our communities and the nation.

“There is an urgent need for more flexible and sustainable funding models.

“Local governments are responsible for maintaining essential infrastructure and services, and are asked to do more with less, yet we receive just 5% of public funding.

“That must change if we are to meet growing demand and unlock the full potential of our cities.

“We’re focused on building a future-ready Hobart.

“This national report reinforces why investing in capital cities is essential for Australia’s prosperity.”