A warning the country's local government system will not be able to withstand future challenges if major changes aren't made

The Future for Local Government Review has made more than a dozen suggestions on how to better deliver outcomes for local communities.

Independent Panel chair Jim Palmer says strong local government is important for building community resilience- and changes are needed.

He says they've concluded the current system isn't fit for the future, isn't well-placed to meet challenges the nation is facing and there isn't mature relationships in place needed to succeed.