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Local Councils Share $1.6 billion in Australian Government Grants

Jim Lloyd, Minister for Local Government, Territories and Roads

TRS14/Budget 10th May 2005

Australia's local governments will receive $1,617.1 million in Australian Government financial assistance grants in 2005-06, the Minister for Local Government, Territories and Roads, Jim Lloyd, announced today.

"It is the first time ever that our financial assistance grants to local government have broken the $1.6 billion threshold. The figure is $67.4 million higher than in 2004-05," Mr Lloyd said.

"The funding consists of $1,120.1 million in general purpose grants and $497 million for local roads. All the grants are untied, which means that councils can spend them on the priorities determined by their local community.

"The grants are in addition to the funding that councils receive under the Roads to Recovery Programme. South Australian councils will also receive an extra $9 million in 2005-06, as part of the Government's $26.3 million package to address South Australia's current disadvantage in the local roads funding formula," Mr Lloyd said.

Mr Lloyd said that the Hawker inquiry into local government and cost shifting had made a number of recommendations about the Government's financial assistance grants.

"The recommendations are complex and far-reaching, and the Government has been consulting with local councils and the states and territories about them. I expect to be able to announce the Government's response shortly," Mr Lloyd said.

The details of this year's local government financial assistance grants are attached.

 

Media contacts:
Fiona Telford Mr Lloyd's office 02 6277 7060 / 0407 908 504

 

Local government financial assistance grants,1 2005-06

General Purpose
($m)
Local road
($m)
Total
($m)
Increase2(%)
NSW
374.4
144.2
518.6
4.0
VIC
276.7
102.5
379.2
4.5
QLD
217.3
93.1
310.4
4.8
WA
110.7
76.0
186.7
4.7
SA3
85.1
27.3
112.4
3.8
TAS
26.8
26.3
53.1
4.1
NT
11.2
11.6
22.8
4.1
ACT
17.9
15.9
33.9
3.9
Total
1,120.1
497.0
1,617.1
4.3

Figures may not add to totals due to rounding.


Footnote

1 The 2005-06 entitlement for financial assistance grants is $1,617.1 million. However, updated estimates increased councils' entitlements in 2004-05 by $9.6 million, and this additional funding will be paid in 2005-06. As a result, the actual cash paid to councils in 2005-06 will be $1,626.7 million. An adjustment arises each year because the total grants pool is estimated before the start of the grant year using expected increases in CPI and population for the coming year. At the end of the grant year, once the actual movements in CPI and population are known, the total grants pool is recalculated. Any adjustment to the total grants pool is made by adjusting payments to councils in the following year.
2The differences in the percentage grant increases are due to differences in the estimated population growth of the states and territories. General purpose grants are allocated between states and territories on the basis of population, whereas they receive fixed shares of the local road grants.
3Does not include the state's $9 million supplementary local roads grant in 2005-06, as it will be paid under separate arrangements rather than the financial assistance grants legislation.