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The Australian Government has provided around $33 billion in Financial Assistance Grants to local government since 1974-75 (including 2009-10). 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), and
- 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 for allocating grants [
DOC: 27 KB]. The Australian Capital Territory does not have a local government grants commission because the Territory Government provides local government services in lieu of the Territory having a system of local government.
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 its real per capita value. (The Act provides discretion to the Treasurer to alter this annual indexation).
The total grant payment for 2009-10 of $1,922.7 million is $31.5 million more than the 2008-09 payment. The aggregate grants for local government in each State and Territory for 2009-10 are:
| Jurisdiction | General Purpose | Local Roads | Total |
|---|---|---|---|
| NSW | $433,719,943 | $171,448,714 | $605,168,657 |
| Vic | $330,233,684 | $121,829,371 | $452,063,055 |
| Qld | $267,457,191 | $110,719,520 | $378,176,711 |
| WA | $135,343,863 | $90,354,790 | $225,698,653 |
| SA | $99,209,222 | $32,475,866 | $131,685,088 |
| Tas | $30,748,029 | $31,315,366 | $62,063,395 |
| NT | $13,596,707 | $13,842,542 | $27,439,249 |
| ACT | $21,437,040 | $18,948,579 | $40,385,619 |
| Total | $1,331,745,679 | $590,934,749 | $1,922,680,428 |
To assist councils deal with the effects of the economic downturn, on 12 May 2009 the Government announced in the Commonwealth Budget that it would bring forward for payment to all councils in June 2009, around one quarter of the 2009-10 grant pool. The aggregate grants received by local government in each State and Territory in June 2009 were:
| Jurisdiction | General Purpose | Local Roads | Total |
|---|---|---|---|
| NSW | $108,085,625 | $42,775,416 | $150,861,041 |
| Vic | $82,378,552 | $30,395,690 | $112,774,242 |
| Qld | $66,836,602 | $27,623,850 | $94,460,452 |
| WA | $33,841,274 | $22,542,973 | $56,384,247 |
| SA | $24,711,971 | $8,102,532 | $32,814,503 |
| Tas | $7,657,285 | $7,812,994 | $15,470,279 |
| NT | $3,397,172 | $3,453,630 | $6,850,802 |
| ACT | $5,354,005 | $4,727,555 | $10,081,560 |
| Total | $332,262,486 | $147,434,640 | $479,697,126 |
For a more detailed explanation of the operation of the Act and the provision of Financial Assistance Grants to local government, refer to the 2006-07 Local Government National Report.
Other Australian Government support to local government include the Roads to Recovery Program, the Regional and Local Community Infrastructure Program and the Black Spot Program. Local governing bodies in South Australia also receive supplementary funding for local roads.
For information on the 2009-10 grants to individual local governing bodies within each state and territory refer to:
• New South Wales [
PDF: 259 KB]
• Victoria [
PDF: 156 KB]
• Queensland [
PDF: 148 KB]
• Western Australia[
PDF: 268 KB]
• South Australia[
PDF: 165 KB]
• Tasmania [
PDF: 91 KB]
• Northern Territory [
PDF: 73 KB]
• Australian Capital Territory [
PDF: 52 KB]
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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