The formation of electable (partially democratic) local government in the City of Sydney and in Melbourne dates to 1842, the same year as the establishment of the first at least partially elected (as opposed to non-elected) NSW Legislative Council - see link here to download a pdf on history of City of Sydney Council:
http://www.cityofsydney.nsw.gov.au/learn/history/civic-history/council-history

So the first partially democratic state and local governments in Australia date back to the same year: the history is more complicated than just saying that local government came "after" state government. The NSW Legislative Council dates back to the 1830s, however prior to 1842 it was a body appointed by the State Governor (a dictator appointed by the imperial authority in Britain), not an even partially electable body, so not democratic in any sense.

It is definitely high time that local government was recognised in the Constitution, but I am sure the State Governments will want to know how Constitutional recognition of local government will affect they want to manipulate it (e.g. via boundary changes).

Australia is the most governed country per capita, so the last thing we need is the third tier enshrined in the Constitution. We need to abolish local government, reduce the duplication and waste and, most of all, get rid of the springboard for wannabe politicians who use council as a launching point for higher office.

HEAR HEAR !! Personally I'd prefer to abolish the infinitely more wasteful state gubmunts however that would be difficult if not impossible. Local authorities should remain constitutionally unrecognized for exactly the reasons suggested in the previous post. One worthwhile change would be to revert to the almost universal pre-1970s system whereby councillors were unpaid / voluntary local business operators who 'sat' during their lunchtime. Actually I believe this is still the arrangement in many areas in the sticks. There was infinitely less corruption than is currently the case, probably because improper doings would immediately result in the culprit encountering a knuckle sandwich and their business being blacklisted. Representation is clearly maximized when the councillor lives next door and / or drinks at the local pub. The recent concept of 'super councils' as developed by Teflon Pete in Queensland are, as has been suggested, perfect stepping stones for the more avaricious bloodsucking parasites.

I am looking for the catch.

There is no way I am ever likely to vote for any change in our constitution, ever again. After this Rudd/Gillard mess I will never take anything any politician says as true, & will in fact expect a hidden agenda every time they open their mouth.

So thank you Julia & company for creating my total distrust, but no way will I vote for any thing you suggest.

In fact if you or any of your mob have had their dirty fingers anywhere near anything, I am bl00dy well sure it's implementation will be to my/our disadvantage.

Whether in Constitution or not, not really important. Local govt will remain important.

Another of those non-issues, like the Republic, that dont really make much difference. Life goes on in Australia,and there are far more serious issues of concern that will decide our fate.

You miss the point. Sure there are 'bigger issues' at stake, like the bloodsucking parasites busily squandering taxpayers money in ever increasing volumes. One of the expense items is the cost of local gubmunt. By legitimizing the entities, the bloodsucking parasites have our formal blessing to throw our money at ever more inane causes. reducing the size of gubmunt / local authorities including making local authority positions unpaid / voluntarily will dramatically reduce expenditure & assist whatever moronic treasurer we inherit after September to balance the books. Mind you it also reduces the control exerted by said bloodsucking poarasites & thats exactly why they won't buy the idea of smaller gubmunt.