JAUSTRtALIA L PRESS STATEMENT NO. 518
19 June 1975
PREMIERS 2CONFERENCE
Following discussions at today's Premiers' Conference/
Loan Council meeting the Australian Government has agreed
to introduce into the Australian Parliament legislation
amend the StatesGrants Act so as:-
to increase the financial assistance grants
otherwise payable in 1975-76 by $ 220 million
to be built into the base for calculating the
g7rants in subsequent years.
2 to add an amount of $ 5 million to the baso
awount on which Western Australia's financial
assistance grant for 1975-76 and subsequent
years will be calculated; and
to provide for an increase in the :' betterment"
factor from the present 1.8 percent to
percent to apply for purposes of
calculating the grants for 1976-77 and subsequent
years.
The Prime Minister made it. clear that subsequent
requests by the States for general revenue assistance
supplementary to that yielded by the formula arxangements
will not be entertained except in circumstances which are
truly abnormal and unpredictable, and with which the States
are clearly unable to cope unaided.
On the basis of best estimates of population and
average wages and given the additional assistance referred to
above it is expected that the financial assistance grants in
1975-. 76 will, in total, be about $ 846 million higher than in
1974-75. This is equivalent to an increase of 35.6 percent.
The Australian Government agreed to support increases
fn the " basic" Loan Council programs of both the States and
their larger authorities of 20 percent.. The total program
agreed to for the State Governments is $ 1,291 million and
that for larger State authorities is $ 809.7 mill. on.
The meeting agreed to an increase in the borrowing
limit for smaller authorities from the present $" 00,000 to
$ 700,000.
S ~ 0A
2.
The Australiati Cov-rnment also agreed to continue
tChe spccial cmploymeit grlnts sche~ i,: in 1975-76 on a
phasing out basis. Spucifically, grants of $ 10 million in
july, reducing b $ 2 million per month down to $ 2 million
in Novembor will be provided a total of $ 30 million.
CANBERRA, AC. T.
I
C rer: h~ i c" ~ rp~. ir~ nX~ kZLr~'~~ It 44*.* w
ESTE1MAI7S OF FINANCIAL ASSISTANCE GRANTS
million
On Basi-of
Arr a n-t-a~ n L s k a 1
923 9
69o. 7
525,8 353.3 347.6 152.2
2,993.5 RIacre-tse s
Agreed to
at
Conforenco 67.7 50.6 38.6 25.9 32.4( b)
11.2
226.4( b)
77ncorporaze adjustnents to accompany railway transfers in
South Australia and Tasmania. Made on basis of preliminary
estisates of increases in average wages and population.
Including additional amiount of approximately S6,. million
resulting from addition of $ 5 million to tha State's formula
grants base. LOAN COUNCIL PROGRAMS 1975-76
S1' 000
STATE GOVERNMENTS
GRANTS BOR{ ROWING; S TOTAL
137 ,057
108,871 579 459
569475 160,099 30,372
430,333 14,1 71 ( a)
326,615 172,378 169,425 120,296 91,115
1,29 1,000 1GAUEGR AUTIOIU TI ES
TOTAL 303,720( a)
256,693 1149 ,769
38,122 38,264 239107
809,675
T-cludes prmannt addition of $ 10 milijon for New South Wales~
in each program. 2
T3 S. i100
VQ -0
1YA A C. Total ) 91.6
' 7111 3
564. 16
379.2 1 6316
3,219.9
S -F
QLD S A.
TAS, TOTAL 274,114 217 ,744k
1 14,919
12,950
80,197 60,7143
860,667 1 y; R: i i?: I
ts. ~ t_ 6~ rl r
; ILUT L-~ 51; rY~ Y~ c~ rtrr
GRANTS UNDER ISPECIAL EMPLOYMNT
GIMInTS SC EXF 1975-76 million 10.0
Augu 1;
Suptgrabor cc Oba r ,0r
* Stato bhy 0 d6 1vo xUbtion ( basod on nunber of
~ oiacy asn ic-plyod, excluding achool
lca'vo7 -Or ao t ond May 1975) wouldt~ lea bc as foloo:-
millionboa
Y. S. 10
Vic, S0110
U. A.
Qo 11.7 8.2 2., 4
0.7
' Total30.0
( i
A'' 19 7-75 AGZ7n !
Adjuotments olatcd to Railway
Txan fcr and South Australias
' Withdrawal from Grants Commisnion
Systcm Proposd Addition to Western
Au3tralicis " Bascl' Grant
Total " Base" Grants
Additions Under ti-o Formula( d)
Total of Above ( f)
PrcportIonal Distribution of 8220
Million Additional Financial
Ttl P~ p~ s'z d 2inancial
' Grant ( j)
œ caticn Factors
Population ( h)
Avcraac Wages ( i)
Betterment 73? 522
737,522 136,344 5 48,
548,, 4o55
142,3 2 414,446 v, 261,73y7 2 5,000
i4,4L46 1281% 737 1 i 330
111,382 71,606 75,6
923,900 16i9700 52r 3300 353,3O0
67,700
99, 600
1 -o45
1.225 1.018 50,600
74i, 300
1.0100 1 .225
1.018 38,600
1564, 400
1 .0174
1 .018 25,900
379,200 1.0057 1 0223
1 0018 26 4-00 0
1380,000 a() f ( Jt
Io, 700 09,300 3,000
121,171 2,381,611
31,069 618, 289(' C
152,200 1,200
I 163,400
1.0198 1.0075
S. 225 1 .225
1.013 1. 018 2, r0,900
2PO, 000
3,219,900 1 00100714()
1 .223
1.019
Excludes S6.5 million additional f inancial aesistnc ce PQid in 1974-75.
Includes additional 815 million in connectioi with Tasmanla s withdra-0-al from the Grants Commrission aystef.
Approximate only; subject to -efinoment on further analysis of Stato's non-metropolitan railways deficit in
1974-75.
In accordance with the cscalation factors rset out below.
CALCULATION 0lF ES S-XNC1AL ASS _ S R . S : 1 1977
o". o
3~ o ' l O i kd 0C oa1fj; B j o
0i
( a)
( b)
( c) d) 3~ PE-~-~ PV Ir~ CDLI~ PU I;-S I -I
ii A
Dc-rived bv calculattn-back from thc rounded%. toL; 1 for t* c Jix statzs0
d to the neiarest S! O0gOC0o
Ms-Dtx! r~ vpe by idding. thec rounded fi[-uror. for each State.
on !' ojrvardI-( f-ti mtt-; : m'upp I ( Iul hy Lll(-1 i 111 l1ur1 1c oIf St tL! t ~ C
v~; irinry AtMt'LiilT'L i'i~ lM) jh ye~ t' ( L ti) IL iax-Lc wn~~ cie rtainCy.
P SSjU bj ect to OffSCt9' ill rC. Pct o' tiaitsfers or' responibilitia3 in x' 031' Iect 01' assistance for da-serteñ d
wi~ vi ! s and Aboriginal affairs. Armuni not yet d2 ": erm-. dt. CcI
S A.
' C ( 1)
$' 000
334,309 272,179 143, 6, S
141,188( a)
100,247 75,929( a) All. ocation ( 2)
' 000 9,919 9,919 ( 3)
S1000 334,109 272, 179
153,567 141,188( a)
100,247 75,929( a)
1,077,419( a)
19717-75 9000
4 01,171
326, 615
172,378 169,425 120,296 91,115
1,281,000 1000 10,000 10,000
7-
oo( Ab)-z i i i
( LI) 6)
$' 000
411, 171
326,615 172,378 169,42 120,296 91,115
1,291,000 20,0 ( 23.0'
20,0 20.0 20.0 20,0 200 20,0 ( 20.9
The amounts,/ shovm for South Australia and Tasmr. ania are in each case $ 5 million less that tho actual
programs in that year. These reductins are in pur suance of arrangements agreed with these States
in respect of " offsets" to mcompany railway transferds. Thus the total amounts shown for the six
States combined are $ 10 million less than the actual program,
Divided between the States in the same proportions as amounts in column that is 1974-75
basic program less railway transfer offsets,
The figure of 20,0 per cent represents the increase in the basic programs ( column compared with
column The figures in brackets represent the increase in the aggregcate 1975-76 pro,; ra: m over
the 1974-75 program excluding the special temporary allocation for Queensland. The aggrogate
increase, including the special temporary addition, is19,8 per cent. r-
N SW
VIC OLD SA WA
TAs ( 7)
TOTAL 1,067,300( a) I
I 1CII ~ scac~ ol--e~
~ a~-~ ooPr~ 3 -~-SP~ C~ IC~ IC.
r. I
STATE. GOVERN,-NT LOAN COUNCIL P1ROGIR. M1S LN
1 975-76 DIVISION~ IJIYPW4fEN BOlZ!: OWl: N'.--S ANT) CAPITPAT, C! 1ANTJ
] 9oRrowing' Profriam
' 000O
27 4, i 1-4
2.17 7 0
,. tV4 91
1120950 80,197 Capital Grants
137 j03j7
.57, I5t 9
40, P099
30,372' I ,? 9l~ 00()
" V A
4 s T.;) ta
' l000
3 26 O6
17 2 378
16c), 1425
667 t. 20,2c96
91,115
430, 333
LARGER AUTHORITIES' PROGRAMS 1974-75 AND 1975-76
1974-75 Program
Temporary Allocations ( 2)
$ 1000
NSV 19,584 6,000
25,584 Total ( 3)
$* 000 Basic Program( a)
( 4)
0' 000
244,767 293,720
213,911 256,693
138,495 12,694
31,768
37,887 19,256
686,084 38,122 38,264 23,107
79?, 600 Permanent Additions ( 5)
' 000 Temporary Allocations ( 6)
S8000
10,000 7,075 Total ( 7)
$ S000
303,720 256,693
149,769 38,122 38,264 23,107
17,075809,675 Percentage Increase( c)
( 8)
20.0( 24.1
20.0
20.0( 2.6.0
20o0 20.0 20.0 20.0( 22.6
The distribution of the basic program between the States is based on the distribution of the
1974-75. basic program ( column
Includes permanent addition of $ 10 million to New South Walos.
The figure of 20.0 per cent represents the increase in tho basic program ( column compared with
column The figures in brackets reprooont the incrooses in the aggregate 1975-76 program over
the 1974-75 program excluding the temporary additions. Tha aggregate increase, including temporary
additions, is 18.0 per cent.
Basic Program $' 000 975-76
244,767( b)
QLD SA ! VA
I TAS TOTAL 213,911 118,911 31,768 31,887 19,256
660,500