FOR PRESS AUGUST 1977
COMMONWEALTH ASSISTANCE TO LOCAL GOVERNMENT
The Prime Minister today has advised Premiers that $ 165.3 million
will be made available to the States for pa~ ssing to local
government authorities as general revenue assistance in 1977-78
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 1977-78,. together
with the corresponding amounts for 1976-77 are:
LOCAL GOVERNMENT TAX-SHARING ENTITLEMENTS
1976-77 1977-78
$ m Sm
New South Wales 51.3 60.3
Victoria 35.4 42.1
Queensland 24.2 27.9
South Australia 11.9 14.2
Western Australia 13.2 15.5
Tasmania 4.0 5.3
Total 140.0 165.3
The distribution shown for 1977-78 is based on the -percentage
distribution recommended by the Grants Commission and accepted
by all Premiers at the Premiers' Conference on 1 July 1977.
Amending legislation to give effect to this distribution will
be given priority in the Budget sittings and it is not expected
to cause any delays in payments to local government authorities.
" Local Government will1 in the light of this information now be
able to reasonably estimate the amount it is likely to receive
in this year", the Prime Minister said. a o/ 2
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.
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
th e Minister Assisting the Prime Minister in Federal Affairs
has been notified that the proposed distribution is in accordance
with the legislation.
The general revenue assistance to local government has increased
from $ 80 million under the previous, government to $ 140 million
last year the first year of the new tax-sharing arrangements
and $ 165 million this year. The Commonwealth Government's
tax sharing arrangements hove 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. Canberra
I/ August 1977