Financial Assistance Grants to Local Government
The 2015-16 Budget maintains the system of payments to support local government, through Financial Assistance Grants (FAGs). In the 2015-16 financial year, the Australian Government will allocate $2,289 billion in FAGs for local government services to the community.
The freeze on indexation announced in the 2014-15 Budget remains in place, the impact of this freeze was estimated last year to be $925 million in lost FAGs until 2017-18. In 2017-18, indexation is projected to be re-instated, by which time the annual funding base is estimated to be 13% lower than it should have been without the impact of the freeze.
FAGs continue to comprise two components: general purpose assistance grants; and untied local roads grants. Both components of the grant are provided as untied funding 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 governments. The grants are paid in quarterly instalments to state and territory governments for immediate distribution to local governing bodies.
A breakdown of FAGs allocations by jurisdiction is below.
|
Financial Assistance Grants to local government by jurisdiction2015-16 |
|||||||||
|
Financial assistance grants |
NSW |
VIC |
QLD |
WA |
SA |
TAS |
ACT |
NT |
TOTAL $m |
|
General Purpose Assistance |
507.2 |
394.6 |
318.7 |
174.5 |
113.3 |
34.5 |
26.0 |
16.5 |
1,585.3 |
|
Untied Local Road Funding |
204.1 |
145.0 |
131.8 |
107.6 |
38.7 |
37.3 |
22.6 |
16.5 |
703.4 |
|
TOTAL |
711.3 |
539.6 |
450.5 |
282.0 |
151.1 |
71.8 |
48.6 |
33.0 |
2,288.7 |