Referendum on councils the tip AUSTRALIANS could be voting twice at the September 14 election, with a referendum to recognise councils in the constitution tipped. A majority of state and territory premiers are believed to have given in-principle agreement to a federal plan which would protect future funding of local government from legal challenges. The states will need to be satisfied they retain the powers to sack councils and continue to oversee management. Federal Minister for Local Government Anthony Albanese has confirmed a referendum on the issue was now one step closer, with the opposition now also supportive: "The response received from state premiers and the opposition has been positive. What we are seeking to ensure is the ability of state governments to manage local government. While admitting constitutional acknowledgment of local government - which was not recognised at the time of federation - was partly symbolic, Mr Albanese said legal challenges to the validity of councils meant direct federal government funding was at risk. He said local planning decisions and employment could be at risk if constitutional support was not put in place to protect the third tier of government. Writing exclusively in The Daily Telegraph today Mr Albanese said most Australians would be surprised to know the financial relationship between federal and local government was not acknowledged in the constitution: "It's important the Commonwealth is able to keep investing securely into the future and that's exactly what including local government in the constitution is about." A 2011 inquiry, and a parliamentary committee which reported last month, advised recognition of local government should be taken to a referendum. It was also recommended the referendum be held at this year's election. If successful, the referendum would end the argument over whether councils should be abolished.