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FINANCING LOCAL GOVERNMENT
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FINANCING LOCAL GOVERNMENT
BUDGET 2017-18 HIGHLIGHTS

ALGA’s analysis of key points in the 2017-18 Federal Budget from a local government perspective

Financial Assistance Grants (FAGs)

  • The 2017-18 Budget maintains the system of payments to support local government, through Financial Assistance Grants (FAGs).
  • The indexation of FAGs will be restored in 2017-18.
  • In the 2017-18 year, the Commonwealth Government will allocate $2.37 billion in FAGs for local government services to the community. Half of that allocation will paid in the 2016-17 year, however, it will be identified as 2017-18 funding.
  • FAGs continue to comprise two components: general purpose assistance grants; and untied local roads grants.
  • The supplementary payment to South Australia for local roads will be restored in 2017-18 and 2018-19 at $20 million per year, however, there is no funding beyond 2018-19.

Table 1: Commonwealth funding for local government 2017-18 ($m)

Cash in 2017-18 ($m)

General Purpose Assistance

1,639.4

819.7

Untied Local Road Funding

727.4

363.7

South Australian supplementary roads funding

20.0

20.0

 

 

 

TOTAL LOCAL GOVERNMENT FUNDING

2,386.8

1,203.4

 

Table 2 outlines total Financial Assistance Grants (FAGs) for the period 2016-17 to 2020-21.

Table 2: Total Financial Assistance Grants to local government 2016-17 to 2020-21 (cash)

 

 

2016-17

2017-18

2018-19

2019-20

2020-21

 

$m

$m

$m

$m

$m

General Purpose Assistance

2,405.0

819.7

1701.1

1,784.5

1,795.4

Untied Local Road Funding

1,067.2

363.7

754.8

791.8

796.7

Total financial assistance

3,472.2

1,183.5

2,455.9

2,576.3

2,592.0


FAGs are increased annually, based on an escalation factor determined by the Treasurer with reference to population growth and the consumer price index. Half of the 2017-18 payments will be made in 2016-17, therefore the cash payments for those years will appear skewed in tables 2 and 3.  

Table 3: Financial Assistance Grants to local government by jurisdiction 2017-18 (cash)

Financial assistance grants

NSW
$m

VIC
$m

QLD
$m

WA
$m

SA
$m

TAS
$m

ACT
$m

NT
$m

TOTAL

$m

General Purpose Assistance

262.6

205.7

164.5

89.7

58.0

17.5

13.4

8.3

819.7

Untied Local Road Funding

 

105.5

75.0

68.2

55.6

20.0

19.3

11.7

8.5

363.7

TOTAL

368.2

280.6

232.6

145.3

78.0

36.8

25.1

16.8

1,183.5

 

 

 

 

 

 



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