RAJ REPORT

Does Cairns have a equitable level of services as Brisbane ———Do we have horizontal equalisation in Queensland or does all the Commonwealth money stay in Brisbane—–Commonwealth’s notion of equity was that ‘Poorer communities or those where services are more expensive to provide are seen as more deserving of Commonwealth funds.’ It also concluded that the Commonwealth’s notion of equity was encapsulated within the concept of horizontal equalisation. The general consensus among LGBs is that this purpose is about equalisation.——

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PURPOSE 2 — EQUITABLE LEVEL OF SERVICES

14. The second purpose for which financial assistance is provided is ‘to improve

the capacity of local governing bodies to provide their residents with an equitable level of

services’. Although ‘equitable level of services’ is not specifically defined, in the context of

Section 6 of the Act we have interpreted it as referring to horizontal equalisation.

15. This interpretation is supported by the 1994 review which said the

Commonwealth’s notion of equity was that ‘Poorer communities or those where services

are more expensive to provide are seen as more deserving of Commonwealth funds.’ It also

concluded that the Commonwealth’s notion of equity was encapsulated within the concept

of horizontal equalisation. The general consensus among LGBs is that this purpose is about

equalisation.

16. The current arrangements attempt to implement equalisation using three

National Principles:

· Horizontal Equalisation;

· Effort Neutrality; and

· Other Grant Support.

 

 

 

https://www.cgc.gov.au/attachments/article/140/Draft_Report_Volume_1.pdf.

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