Financial Assistance Grants

Restoring the indexation of FAGs

ALGA is calling on the Australian Government to immediately lift the freeze on the indexation of Financial Assistance Grants (FAGs).

The 2014-15 Budget included an announcement to pause the indexation of FAGs for three years, until 2017-18, resulting in a permanent reduction in the FAGs base by about 13 per cent. This will result in the quantum of FAGs being reduced in real terms by more than $300 million per year. 

Councils in rural and regional areas are relatively more dependent on FAGs and ALGA expects that those councils in particular will be negatively impacted by the reduction in FAGs.

To view the FAGs case studies please click here.