Table 35 provides details of the Australian Government payments to local government authorities in 2004-05 for each of the six States and the Northern Territory, and an analogous payment made to the Australian Capital Territory.
In 2004-05, 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 2004-05 and shown in Budget Paper No. 3, Federal Financial Relations 2005-06, were based on an estimated escalation factor of 1.0310, estimated in June 2004, and take into account an overpayment of $7.4 million in 2003-04.
On 29 June 2005, the Treasurer determined the final 2004-05 escalation factor to be 1.0360 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 2004-05 has resulted in an underpayment of $7.5 million in 2004-05 for which there will be an adjustment in 2005-06, as provided for under the Local Government (Financial Assistance) Act 1995.
Table 35: Financial Assistance Grants to local government
- Total Financial Assistance Grant is the actual cash payment that the State receives on behalf of local government. It is 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 36, which is prepared on an accrual basis.