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The Australian Government will have provided over $64 billion under the Financial Assistance Grant program to local government since 1974–75 (including 2022–23). 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).

Financial Assistance Grant program 2022–23

In 2022-23 the Australian Government will provide $2.9 billion in untied funding to local governing bodies under the Financial Assistance Grant program. This includes $2.1 billion which was brought forward from the 2022–23 estimate and paid to states and territories on 11 April 2022. The remaining 2022-23 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

631,015,679

258,851,128

889,866,807

Victoria

511,121,757

183,936,468

695,058,225

Queensland

408,379,918

167,162,951

575,542,869

Western Australia

217,009,283

136,416,538

353,425,821

South Australia

142,040,871

49,031,659

191,072,530

Tasmania

45,295,582

47,279,546

92,575,128

Northern Territory

19,636,493

20,899,295

40,535,788

Australian Capital Territory

36,153,432

28,608,331

64,761,763

Total

2,010,653,015

892,185,916

2,902,838,931

For information on the 2022–23 allocations to individual local governing bodies within each state and territory refer to:

Past Payments to Local Governments

The payment amounts made to local governments under the Financial Assistance Grant program from 2017-18 to 2022-23 can be viewed at the link below.

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

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: