Fact sheet 2: Local government financing
ALGA’s analysis of key points in the 2018-19 Federal Budget from a local government perspective.
Financial Assistance Grants
- The 2018-19 Budget maintains the system of payments to support local government, through Financial Assistance Grants (FAGs).
- In the 2018-19 year, the Australian Government will allocate $1.229 billion in FAGs for local government services to the community. It should be noted that $1.2B was also bought forward from 2018-19 into the 2017-18 financial year.
- FAGs continue to comprise two components: general purpose assistance grants; and untied local roads grants.
Table 1: Commonwealth funding for local government 2018-19 ($m)
|General Purpose Assistance||851.3|
|Untied Local Road Funding||377.7|
|TOTAL LOCAL GOVERNMENT FUNDING|| 1,229.0|
*Note $1.2 billion was brought forward into the 2017-18 financial year
Table 2: Total Financial Assistance Grants to local government 2017-18 to 2021-22 ($m)
|General Purpose Assistance||1,671.7||851.3||1,772.9||1,842.7||1,918.9|
|Untied Local Road Funding||741.8||377.7||786.7||817.7||851.5|
|TOTAL FINANCIAL ASSISTANCE||2,413.4||1,229.0||2,559.6||2,660.4||2,770.3|
Table 3: Financial Assistance Grants to local government by jurisdiction 2018-19 ($m)
|General Purpose Assistance||272.1||219.6||170.6||89.0||59.4||18.0||14.2||8.4||851.3|
|Untied Local Road Funding||109.6||77.9||70.8||57.8||20.8||20.0||12.1||8.8||377.7|
|TOTAL FINANCIAL ASSISTANCE||381.7||297.5||241.4||146.7|| 80.1||38.0||26.3||17.3||1,229.0|
*Note for the above tables – $1.2 billion was bought forward into the 2017-18 financial year