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FOR MEDIA IVTEDNESDAY, 6 AUGUST, 1980
COMMONWEALTH ASSISTANCE TO LOCAL GOVERNMENT
Following implementation of the Government's undertaking to
increase to the percentage allocation of personal income
tax collections to local government, local authorities will
this year receive a massive 35.65%~ increase in general
revenue assistance.
Premiers have been advised that $ 300.79 million will be made
available to the States for passing to local government
authorities as general revenue assistance in 1980-81 under
arrangements provided by the Commonwealth in the Local
Government ( Personal Income Tax Sharing) Act 1976.
The amounts to be paid to each State in 1980-81, together
with the corresponding amoutns for 1979-80 are:
Local Government Tax Sharing Entitlements 1979-80 1980-81
$ m $ m
New South Wales 80.93 109.78
Victoria 56.44 76.55
Queensland 37.39 50.71
South Australia 19.07 25.87
Western Australia 20.82 28.24
Tasmania 7.09 9.62
Total ( rounded) 221.74 300.79
The funds provided to the States under these arrangements are
allocated to individual local government authorities by the
States. Under general guidelines provided in the Commonwealth
legislation, at least 30%~ of the funds are to be distributed
to all Councils on a per capita basis, which may be weighted
for area or population density, with the balance being
allocated on a needs basis which is the subject of prior
inquiry and report by the individual State Grants Commissions. / 2
2
The funds will be made available to the States for
payment to each local government authority as soon as
possible after the States Grants Commissions have completed
their assessments and the Minister Assisting the
Prime Minister in Federal Affairs has been notified that
the proposed distribution is in accordance with the
legislation.
. General revenue assistance to local government has
increased from $ 80 million under the previous Labor Government
to $ 140 million in 1976-77, $ 165 million in 1977-78,
$ 179.4 million in 1978-79, $ 221.74 million in 1979-80 and
$ 300.79 million for 1980-81. As a result, local government
will have received over $ 1,000 million in untied grants
in the five years of the tax sharing arrangements.
In addition to the funds provided to the States, the
Commonwealth has made provision, under the Memorandum of
Understanding between the Commonwealth and the Northern
Territory, for an amount of $ 1.440 million to be made
available in 1980-81 to the Northern Territory Government
for on-forwarding to the local government authorities in
the Territory ($ 1.062 million in 1979-80).
The Commonwealth Government's tax sharing arrangements have
thus provided a very substantial and rapidly growing source
of funds to local government bodies throughout the country.
Just as importantly, the funds are provided without
strings giving local governments the freedom, and the
responsibility, to determine their own expenditure priorities.
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