, AU STAL!, AFOR
MEDIA FRIDAY, 6 AUGUST 1982
COMMONWEALTH ASSISTANCE TO LOCAL GOVERNMENT
The Acting Prime Minister, John Howard, announced today that
local authorities will this year receive from the Commonwealth
an increase in general revenue assistance.
Premiers have been advised that $ 424.49 million will be made
available to the states for passing to local government authorities
as general revenue assistance in 1982-83 under arrangements
provided by the Commonwealth in the Local Government ( Personal
Income Tax Sharing) Act 1976. This represents an increase of
almost 21% over the allocation for 1981-82.
The amounts to be paid to each State in 1982-83, together with
the corresponding amounts for 1981-82 are:
Local Government tax sharing entitlements 1981-82 1982-83
New South Wales 128.06 154.93
Victoria 89.30 108.04
Queensland 59.16 71.57
South Australia 30.18 36.51
Western Australia 32.95 39.86
Tasmania 11.23 13.58
TOTAL ( round 350.87 424.49.
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 States Grants Commission.
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 assessment
and the Minister Assisting the Prime Minister in Federal
Affairs has been notified that the proposcd distribution
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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, $ 165.33 million in 1977-78, $ 179.43
miAllion in 1978-79, $ 221.74 million in 1979-80, $ 300.79 million
in 1980-81, $ 350.87 million in 1981-82 and $ 424.49 million in
1982-83. As a result, local government will have received
about $ 1783 million in untied grants in the seven 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 $ 2.03 million to be made available
in 1982-83 to the Northern Territory Government for
onforwarding to the local government authorities in the
Terkitory ($ 1.68 million in 1981-82).
The Commonwealth Government's tax sharing arrangements have
thus provided a very substantial 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.