FOR PR~ S: P. M. No. 65/ 1967
PREEIJER' COTFE\ C JUTNE 1967
FINANCIAL ASSISTANCE GJRANTS FOR 1967-68
Statemnt by-the Primo iniatcr, Mr. Harold Holt
For purposes of calculating the financial assistance
grants for 1967-68 ( and for future yers) the Commonwealth
has offered, and the States have accepted, the inclusion
in the 1966-67 formula grants the amount of .5.0 million
paid to the States in 1966-67 as a special addition to
the formula grants for that year.
The reduction in the time lag before movements in
average wages are reflected in the grants has made it
much more difficult than previously to estimate next year's
formula grants at this point of time. However, after
taking account of the addition of 4,5 million in the base
for determining the 1967-68 grants, it is tontatively
estimated that the formula grants payable to the States
in 1967-68 will be about 900 million. This would be an
increase of about W73 million, or about 6.9 per cent. on
the total grants actually paid in 1966-67.
The final figure of the formula grants will depend
on the movement in average wages for the twvelve months
ended IMarch, 1968 and on the increase in each State's
population between December, 1966 . nd December, 1967.
These will not be hnown until towards the end of the 1967-68
financial year.
The attached table shows the approximate estimated
distribution of the % 9CO million as between the States.
CANBERR2A. 29th June, 1967.
FINANCIAL ASSISTANCE GRANTS
million
1966-67 Actual1967-68 Tentative Estimate
Non-recurring
Addition 1.7
1.3 Total ( a)
276.8 208.8
0.8
Formula 275.1 207.5 124.7 93.8 85.9 34.6
821.6 94.3 86.4 34.8
826.6 Formula Grant
( Old basis)
298.0 225.3 137.6 102.1 37.3
894.7 Effect of
adding
million to Base
1.8 1.3
0.9 0.6 0.3 5.4 Total Increase on
197-67
299.8 226.6 138.5 102.7 94.9 37.6
900.1 23.0 17.8 13.0 8.4 2.8
73.5
To be used as base for determining 1967-68 grants.
0.2 5.0
N. S. W.
Vic. Q'id. S. A.
W. A.
Tas. TOTAL