Each year, ALGA provides an analysis of the Federal Budget with a specific focus on its impact on local government. The aim of the analysis is to provide local government with information on the total financial assistance it receives from the Australian Government as well as putting this assistance into context with the government’s overall budget priorities.
Individual fact sheets have been prepared on those topics most relevant to local government. Each fact sheet highlights major expenditures and policy initiatives.
Table of Contents
Page 1: Fact sheet 1 – Financing Local Government
Page 2: Fact sheet 2 – Transport – A Local Government Perspective
Page 3: Fact Sheet 3 – 2020-21 Budget Overview
Fact sheet 1: Financing Local Government
Financial Assistance Grants (FAGs)
- The 2020-21 Budget maintains the system of payments to support local government, through Financial Assistance Grants (FAGs).
- In 2020-21 the Australian Government will provide $2.54B in FAGs funding. This includes $1.3B which was brought forward from the 2020–21 estimate and paid to states and territories on 25 May 2020.
- The FAGs as a proportion of Commonwealth Tax Revenue in 2020-21 is therefore estimated to be 0.6%. This is higher than the 0 .55% estimate in 2019-20 because of expected lower Commonwealth revenue
- FAGs continue to comprise two components: general purpose assistance grants; and untied local roads grants.
| Table 1: Commonwealth funding for local government 2020-21 | ($m) |
| General Purpose Component | 859.4 |
| Local Road Component | 381.3 |
| TOTAL LOCAL GOVERNMENT FUNDING | 1,240.7 |
| *Note $1.3 billion was bought forward into the 2019-20 financial year |
| Table 2: Outlines total Financial Assistance Grants (FAGs) for the period 2020-21 to 2023-24 | 2020-21 $m | 2021-22 $m | 2022-23 $m | 2023-24 $m |
| General Purpose Component | 859.4 | 1,803.6 | 1,842.9 | 1,897.9 |
| Local Road Component | 381.3 | 800.3 | 817.8 | 842.1 |
| TOTAL FINANCIAL ASSISTANCE | 1,240.7 | 2.603.9 | 2,660.7 | 2,740 |
| *Note a bring forward payment of $1.3B from 2020-21 was provided on 25 May 2020. |
| Table 3: Financial Grants 2020-2021 | NSW $m | VIC $m | QLD $m | WA $m | SA $m | TAS $m | ACT $m | NT $m | TOTAL $m |
| General Purpose Component | 273.8 | 224.0 | 172.8 | 88.9 | 59.2 | 18.1 | 14.4 | 8.2 | 859.4 |
| Local Road Component | 110.6 | 78.6 | 71.4 | 58.3 | 21.0 | 20.2 | 12.2 | 8.9 | 381.3 |
| TOTAL | 384.4 | 302.6 | 244.2 | 147.2 | 80.2 | 38.3 | 26.6 | 17.2 | 1,240.7 |
| *Note a bring forward payment of $1.3B from 2020-21 was provided on 25 May 2020. |
Posted 6 October, 2020