Research released on Monday said rural roads are a "dangerous disgrace" and had been neglected by federal governments more focused on major construction in the cities.

The economic analysis called on the Commonwealth to spend an extra $1 billion every year to help under-resourced councils maintain local roads, which have been damaged by frequent disasters.

"You don't need to drive too far on a rural road in Australia to encounter a pothole, soft edge, or other hazard," the Grattan Institute's report Potholes and Pitfalls said.

"Our local roads, especially in the bush, are a dangerous disgrace.

"They need more funding, and the money needs to be better targeted, with cleaner lines of accountability."

Rural and remote councils are in an "impossible position" looking after vast road networks when they have fewer ratepayers and employees than metropolitan regions, the independent think tank's report said.

With AAP.