Financial Assistance Grants to Local Government
The Australian Government has provided around $31.1 billion in Financial Assistance Grants to local government since 1974-75 (including 2008-09). The grants are currently provided under the Local Government (Financial Assistance) Act 1995 (the Act).
The grants have the following components:
- a general purpose component which is distributed between the States and Territories according to population (ie, on a per capita basis).
- an identified local road component which is distributed between the States and Territories according to fixed historical shares.
Both components of the grants are untied in the hands of local government, allowing councils to spend the grants according to local priorities.
Local government grants commissions have been established in each State and the Northern Territory to recommend the distribution of the Financial Assistance Grants to local governing bodies in accordance with the Act and the National Principles [
DOC: 26 KB] for allocating grants. The grants are paid in quarterly installments to State and Territory Governments for immediate distribution to local governing bodies.
The quantum of the grants pool changes annually in line with changes in population and the Consumer Price Index, so as to maintain their real per capita value. (The Act provides a discretion to the Treasurer to alter this annual indexation).
The 2008-09 estimated grant entitlement of $1.872 billion is 4.97% or $88.6 million more than the 2007-08 actual grant entitlement.
The estimated grants for each State and Territory for 2008-09 are:
| Jurisdiction | General Purpose $ |
Local Roads $ |
Total $ |
Increase from 2007-08 actual % |
|---|---|---|---|---|
| NSW | 424,015,792 | 166,893,787 | 590,909,579 | 4.58% |
| Vic | 321,123,654 | 118,592,696 | 439,716,350 | 4.97% |
| Qld | 258,822,624 | 107,778,005 | 366,600,629 | 5.52% |
| WA | 130,430,617 | 87,954,310 | 218,384,927 | 5.45% |
| SA | 97,445,421 | 31,613,069 | 129,058,490 | 4.55% |
| Tas | 30,347,259 | 30,483,401 | 60,830,660 | 4.57% |
| NT | 13,317,249 | 13,474,784 | 26,792,033 | 5.37% |
| ACT | 20,862,195 | 18,445,165 | 39,307,360 | 4.82% |
| Total | 1,296,364,811 | 575,235,217 | 1,871,600,028 | 4.97% |
The 2008-09 grants for individual local governing bodies will be determined by mid-August 2008.
For a more detailed explanation of the operation of the Act and the provision of Financial Assistance Grants to local government, refer to the 2005-06 Local Government National Report.
For information on the 2007-08 grants to individual local governing bodies within each state and territory refer to:
- New South Wales [
PDF: 212 KB] - Victoria [PDF: 109 KB]
- Queensland [PDF: 194 KB]
- Western Australia [PDF: 148 KB]
- South Australia [PDF: 107 KB]
- Tasmania [PDF: 45 KB]
- Australian Capital Territory [PDF: 22 KB]
- Northern Territory [PDF: 83 KB]
Other Australian Government support to local government includes the AusLink Roads to Recovery Programme, the Auslink Strategic Regional Programme and the AusLink Black Spot Programme. Local governing bodies in South Australia also receive supplementary funding for local roads.
For further information on the respective local government grants commissions, refer to:
- New South Wales Local Government Grants Commission
- Victoria Grants Commission
- Queensland Local Government Grants Commission
- Western Australian Local Government Grants Commission
- South Australian Local Government Grants Commission
- Tasmanian State Grants Commission
- Northern Territory Local Government Grants Commission
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