ALGA analysis of the 2018-19 Federal Budget

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

*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 1,671.7851.31,772.91,842.71,918.9
Untied Local Road Funding 741.8 377.7786.7817.7851.5
TOTAL FINANCIAL ASSISTANCE2,413.41,229.02,559.62,660.42,770.3

Table 3: Financial Assistance Grants to local government by jurisdiction 2018-19 ($m)

General Purpose Assistance 272.1219.6170.689.059.418.014.28.4851.3
Untied Local Road Funding 109.677.970.857.820.820.012.18.8377.7
TOTAL FINANCIAL ASSISTANCE381.7297.5241.4146.7 80.1

*Note for the above tables – $1.2 billion was bought forward into the 2017-18 financial year