NATIONAL PRINCIPLES RELATING TO THE ALLOCATION OF
FINANCIAL ASSISTANCE GRANTS TO LOCAL GOVERNMENT
1. The national principles relating to allocation of general purpose grants are:
(i) Horizontal Equalisation. General purpose grants will be allocated to
local governing bodies, as far as practicable, on a full horizontal
equalisation basis as defined by the Act. This is a basis that ensures
that each local governing body in the State/Territory is able to
function, by reasonable effort, at a standard not lower than the average
standard of other local governing bodies in the State/Territory. It takes
account of differences in the expenditure required by those local
governing bodies in the performance of their functions and in the
capacity of those local governing bodies to raise revenue.
(ii) Effort Neutrality. An effort or policy neutral approach will be used in
assessing the expenditure requirements and revenue raising capacity of
each governing body. This means as far as practicable, that policies of
individual local governing bodies in terms of expenditure and revenue
effort will not affect grant determination.
(iii) Minimum Grant. The minimum general purpose grant allocation for a
local governing body in a year will be not less than the amount to
which the local governing body would be entitled if 30 per cent of the
total amount of general purpose grants to which the State/Territory is
entitled under section 9 of the Act in respect of the year were allocated
among local governing bodies in the State/Territory on a per capita
(iv) Other Grant Support. Other relevant grant support provided to local
governing bodies to meet any of the expenditure needs assessed should
be taken into account using an inclusion approach.
(v) Aboriginal Peoples and Torres Strait Islanders. Financial assistance
shall be allocated to councils in a way which recognises the needs of
Aboriginal peoples and Torres Strait Islanders within their boundaries.
2. The national principle relating to allocation of identified road component of
the financial assistance grants is:
(i) The grants should be allocated to local governing bodies as far as
practicable on the basis of the relative needs of each local governing
bodies for roads expenditure and to preserve its road assets. In
assessing road needs, relevant considerations include length, type and
usage of roads in each local governing area.