Financial Assistance Grants to local government
Table 36 provides details of the Australian Government payments to local government authorities in 2005-06 for each of the six States and the Northern Territory, and an analogous payment made to the Australian Capital Territory.
In 2005-06, local government Financial Assistance Grants were increased on the basis of an annual escalation factor determined by the Treasurer. The payments made to the States in 2005-06 and shown in Budget Paper No. 3, Federal Financial Relations 2006-07, were based on an estimated escalation factor determined in June 2005 of 1.0397 and take into account an underpayment of $7.5 million in 2004-05.
On 15 June 2006, the Treasurer determined the final 2005-06 escalation factor to be 1.0408 on the basis of the Australian Statistician’s determination of population and the All Groups Consumer Price Index number. The difference between the estimate and the final escalation factor for 2005-06 has resulted in an underpayment of $1.7 million in 2005-06 for which there will be an adjustment in 2006-07, as provided for under the Local Government (Financial Assistance) Act 1995.
Table 36: Financial Assistance Grants to local government
- Total Financial Assistance Grants are the actual cash payment that the State receives on behalf of local government. They are equal to the estimated entitlement for a given year adjusted for an overpayment or underpayment from the previous year. The information presented in this table differs from that in Table 37, which is prepared on an accrual basis.