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Review of Local Government Financial Assistance Grants

The Minister for Regional Services, Territories and Local Government, Senator Ian Macdonald, has announced that the Commonwealth Grants Commission will undertake the review of the Local Government (Financial Assistance) Act 1995.

The review is an important part of the Government's desire to enhance equity between Councils while ensuring certainty of funding. It will be wide-ranging and it will be important for all interested stakeholders to make their views known to the Commonwealth Grants Commission.

Senator Macdonald has circulated draft terms of reference to the State and Territory Local Government Ministers and to Local Government Associations for their comments.

The Commonwealth Grants Commission is a world recognised expert in the area of fiscal equalisation and public finance and will bring a high standard of professionalism and independence to the review.

The Commission expects to formally commence the review in early May and then plans to release a discussion paper. Details of the Commission's schedule of events associated with the review will be outlined in the discussion paper.

The Minister is required under Section 17 of the Local Government (Financial Assistance) Act 1995 to undertake a review of the Act before 30 June 2001. Section 17 of the Act specifies some areas that must be covered by a review. The Act also allows the Minister to review other matters relating to Local Government that he determines.

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