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The Australian Government will have provided over $74 billion under the Financial Assistance Grant program to local government since 1974–75 (including 2025–26). The grant is provided under the Local Government (Financial Assistance) Act 1995 (the Act).

The Financial Assistance Grant program consists of two components:

  • a general purpose component which is distributed between the states and territories according to population (i.e. 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 grant are untied in the hands of local government, allowing councils to spend the grants according to local priorities.

Local government grants commissions in each state and the Northern Territory recommend the distribution of the funding under the Financial Assistance Grant program to local governing bodies in accordance with the Act and the National Principles for allocating grants.

The Australian Capital Territory does not have a local government grants commission as the territory government provides local government services in lieu of the territory having a system of local government.

The grant is paid in quarterly instalments to state and territory governments for immediate distribution to local governing bodies.

The quantum of the grant pool changes annually in line with changes in population and the Consumer Price Index (the Act provides discretion to the Treasurer to alter this annual indexation).

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Financial Assistance Grant program 2025–26

On 23 June 2025, the Australian Government announced a bring forward of 50 per cent ($1.726 billion) of the estimated 2025-26 FA Grant entitlement for payment in 2024–25. The bring forward of $1.726 billion was paid to states and territories on Friday 20 June 2025.

Jurisdiction# General purpose
($)		 Local roads
($)		 Total
($)
New South Wales  372,935,566  153,942,165  526,877,731
Victoria  307,205,236  109,389,432  416,594,668
Queensland  245,693,320  99,414,002  345,107,322
Western Australia  130,665,199  81,128,705  211,793,904
South Australia  82,226,198  29,159,772  111,385,970
Tasmania  25,120,328  28,117,768  53,238,096
Northern Territory  11,131,442  12,429,085  23,560,527
Australian Capital Territory  20,784,450  17,013,747  37,798,197
Total  1,195,761,739  530,594,676  1,726,356,415

 The 2025-26 allocation to states and territories (including adjustment) will be determined early in 2025-26.

Financial Assistance Grant program 2024–25

In 2024–25 the Australian Government will provide almost $3.3 billion in untied funding to local governing bodies under the Financial Assistance Grant program. This includes just under $2.8 billion which was brought forward from the 2024–25 estimate and paid to states and territories on 28 June 2024. The remaining 2024–25 allocation to states and territories will be paid in four equal quarterly instalments scheduled for August, November, February and May.

Jurisdiction# General purpose
($)		 Local roads
($)		 Total
($)
New South Wales 713,626,332 293,119,007 1,006,745,339
Victoria 581,739,615 208,286,806 790,026,421
Queensland 466,267,781 189,292,735 655,560,516
Western Australia 245,557,008 154,475,973 400,032,981
South Australia 158,694,956 55,522,691 214,217,647
Tasmania 49,378,560 53,538,626 102,917,186
Northern Territory 21,693,326 23,666,039 45,359,365
Australian Capital Territory 39,874,738 32,395,630 72,270,368
Total 2,276,832,316 1,010,297,507 3,287,129,823

For information on the 2024–25 allocations to individual local governing bodies within each state and territory, refer to:

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Past Payments to Local Governments

The payment amounts made to local governments under the Financial Assistance Grant program from 2017–18 to 2024–25 can be viewed at the link below.

For information on the allocations to individual local governing bodies within each state and territory, refer to:

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Local Government National Report

For a more detailed explanation of the operation of the Act and the provision of funding under the Financial Assistance Grant program to local government, refer to the latest version of the Local Government National Report.

Local Government Grants Commissions

For further information on the respective local government grants commissions, refer to:

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