Are Local Government solely the responsibility of the State Government?

The author wrote to the Attorney generals Department to establish the legality of Local Government entities in Australia and if Local Government is the Crown. The Attorney Generals Office replied by stating Local Government is an area of State Responsibility, as a result of this response Constitution Watch now asks the Attorney General if this is the case why are there Commonwealth laws to fund a third tier of Government if Local Government is a State responsibility. It appears on this occasion the Attorney General of Australia is mistaken that Local Government is exclusively a State Responsibility.

FOI16163 decision letter

If this statement in the response is true why do the following Commonwealth Acts exist?

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