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Local Councils Share $1.7 billion in Australian Government Grants

Jim Lloyd Minister of Local Government and Roads
021TRS/Budget9 May 2006

Australia's local governments will receive $1,676.2 million in Australian Government financial assistance grants for 2006-07, the Minister for Local Government, Territories and Roads, Jim Lloyd, announced today.

"The grant funding has increased by 3.63% compared to 2005-06, which translates to a $58.7 million increase," Mr Lloyd said.

"The funding consists of $1,161 million in general purpose grants and $515.2 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 $13 million in funding for local roads above these grants in 2006-07, as part of the Government's $26.3 million package to address South Australia's current disadvantage under the local roads funding formula," Mr Lloyd said.

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

Media contacts:
Mr Lloyd's office -Fiona Telford02 6277 7060 / 0407 908 504

Local government financial assistance grants,1 2006-07

 
General Purpose
($m)
Local road
($m)
Total
($m)
Increase2
(%)
NSW
386.3
149.5
535.8
3.4
VIC
286.8
106.2
393
3.6
QLD
227.1
96.5
323.7
4.3
WA
115.1
78.8
193.9
3.9
SA3
87.8
28.3
116.1
3.2
TAS
27.6
27.3
54.9
3.3
NT
11.6
12.1
23.7
4
ACT
18.5
16.5
35
3.3
Total
1,161.00
515.2
1,676.20
3.6

Figures may not add to totals due to rounding.

Footnote

1The estimated 2006-07 entitlement for financial assistance grants is $1,676.2 million. The actual entitlement for 2005-06 is subject to a final determination in June 2006. The grants paid in 2006-07 will be adjusted by the amount of the finally determined variation. The current estimate for this variation is an additional $0.6m. This 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.

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 South Australia's $13 million supplementary local roads grant in 2006-07, as it will be paid under separate arrangements.