Report on performance

Local governments are assisted to serve their communities.

The Department administered funding that assisted local governments across Australia to deliver essential services such as planning and development, community services and infrastructure, including roads. The Department also actively promoted and supported best practice in local government.

In 2007-08, grants averaged approximately 7% of local government revenue overall but provided more than 50% of the revenue of some councils.

In 2007-08, the Department provided advice to the Australian Government in relation to:

• the establishment of the Council of Australian Local Governments;
• the findings of the Productivity Commission's report Assessing Local Government Revenue Raising Capacity, which was issued in April 2008;
• issues considered by the Local Government and Planning Ministers' Council, including the endorsement of financial sustainability principles for local government;
• the outcome of the plebiscites on Queensland council mergers; and
• local government amalgamations in Queensland and the Northern Territory and their implications for local government financial assistance grants.

Grants are allocated and distributed to local governments in line with national principles.

In 2007-08, the Department administered financial assistance grants to Australia's local governments under the Local Government (Financial Assistance) Act 1995. Payments totalling $1,765.8 million were made in 2007-08, in accordance with national principles which broadly require that the funds be distributed between local governing bodies according to relative need.

The Department administered supplementary funding of $13.6 million to South Australian councils for local roads.

Better practice in local government is recognised and promoted (e.g. through a national awards process).

In 2007-08, the Department promoted local government successes and achievements through:

• the annual National Awards for Local Government; and
• the online database of more than 2,000 projects nominated for awards since 1997.

The National Awards for Local Government attracted 287 entries, across 15 categories, including asset management, efficiency, innovation, health and wellbeing and women's participation in local government. Information about the awards was made available on the Department's website.

Local governments are assisted to improve their land use planning and development assessment systems.

In 2007-08, the Department supported the Development Assessment Forum to reform and harmonise Australia's development assessment systems. A key project was to develop the electronic development interoperability specifications which prescribe how organisations are to exchange data to complete development assessment transactions.

More information about the forum is available on its website www.daf.gov.au.

The Department provided advice to the Australian Government representatives on the Local Government and Planning Ministers' Council, and secretariat services to the council.

Funding and information are provided to some 700 local governing bodies across Australia.

In 2007-08, information and funding was provided to 612 local governing bodies across Australia, including 72 Indigenous councils. As the Australian Capital Territory has no local government, its share was paid directly to the Australian Capital Territory Government.

$2.6 million

The actual price of this output in 2007-08 was $4.4 million.

Local governments are assisted to serve their communities.

In 2007-08, the Department continued to support local governments to serve their communities, by providing financial grants to local government, advising the Australian Government on local government issues, and celebrating and promoting local government's achievements. This included:

• providing $1,765.8 million in financial assistance grants to local governments to help them improve infrastructure and services to local communities;
• providing an additional $13.6 million to local governments in South Australia for their local roads;
• disseminating information through the Local Government National Report and through the Department's website about local government grants and policy issues affecting local government;
• recognising and promoting best practice in local governments through the Local Government National Awards; and
• supporting the Local Government and Planning Ministers' Council, which endorsed principles to improve local government's long-term financial sustainability and took steps to lift the efficiency and effectiveness of development approval processes.

Local governments are assisted to provide essential services at the community level.

The Department worked closely with local government grants commissions in each state and territory to allocate and distribute grants in line with national principles which ensure that grants are distributed on the basis of relative need of councils once a minimum grant requirement is met.

In particular, the Department held discussions with local government grants commissions in Queensland and the Northern Territory, regarding the application of the national amalgamation principle to the distribution of grants to new councils following mergers in those jurisdictions.

Grants are administered in line with the Local Government (Financial Assistance) Grants Act 1995.

In 2007-08, the Australian Government Minister for Local Government, Territories and Roads determined the amount of grant funding to be allocated to each state as required by the Act. The Department administered the payment of grants in line with the requirements of the Act.

An annual report on the operation of the Act is tabled as soon as practicable after 30 June each year.

The 2005-06 Local Government National Report was tabled in September 2007; it can be accessed on the Department's website.

Grants paid quarterly: 15 August, 15 November, 15 February and 15 May.

Grants were paid to states and territories in quarterly instalments on 15 August, 15 November, 15 February and 15 May. The first payment for the Northern Territory was made on 19 August due to a delay in the territory submitting its recommendations for the distribution of funds between local governments.

Grants are distributed to some 700 local governments.

Grants were distributed to the 612 local governments on schedule.

$1,761.2 million

The actual cost of this program in 2007-08 was $1,780.8 million.

The variance is due to the legislative process for determining the amount of financial assistance grants, which takes place after the budget is published.

Local governments have equitable access to Australian Government funding for local roads.

To facilitate equitable access to funding for local roads, the Department administered supplementary Australian Government funding for South Australian councils. The 2007-08 Budget allowed for $58 million in funding to be disbursed over four years.

Grants are distributed in line with the local roads grants component of financial assistance grant.

Grants were distributed in accordance with the distribution of the local roads grants component of the financial assistance grants.

Grants paid quarterly:
15 August, 15 November, 15 February and 15 May.

Grants for 2007-08 were paid quarterly to the South Australian Government on these dates.

Supplementary funding is distributed to 74 local governments in South Australia.

Grants were distributed to all 74 councils on schedule.

$13.6 million

The actual cost of this program in 2007-08 was $13.6 million.

Funding to Australian Electoral Commission for conduct of plebiscites.

The Government funded the Australian Electoral Commission to carry out the plebiscites in Queensland. There was a 55% voter turnout for communities whose councils chose to take part in the plebiscites.

Payments made within agreed timelines.

The payments were made on time.

Queensland

The plebiscites were conducted in Queensland.

$1.5 million

The actual cost of this program in 2007-08 was $1.5 million.