Local government was disappointed by the decision in the 2014-15 Budget to pause the indexation of Financial Assistance Grants (FAGs) for three years.
This decision will see FAGs frozen at their current level until 2017-18 and will result in a permanent reduction in the FAGs base by an estimated 13 per cent. The quantum of FAGs will be reduced by more than $300 million per year.
ALGA asks the Australian Government to restore the indexation of FAGs in the 2016-17 Budget and to consider the adequacy of the quantum of FAGs and the indexation methodology in the future.
DownloadClick here to download