The State Grants Commission (the Commission) is an independent statutory body that was established by State legislation, the State Grants Commission Act 1976
. The primary function of the Commission is to make recommendations to the Treasurer concerning the distribution of Australian Government financial assistance grants (FAGs) to local government under the provisions of the Australian Government legislation, the Local Government (Financial Assistance) Act 1995 (C'wlth).
The Australian Government financial assistance is provided in two parts: a Base Grant (general purpose) component and a Road Grant component. The Australian Government determines each state's share of the Base Grant pool based on population share and the Road Grant pool based on historically agreed proportions. Despite their source names, FAGs are provided to councils as untied, general revenue.
Each financial year, the Australian Government provides estimated grant pools upon which the Commission bases its recommendations. The Australian Government also finalises each states' grant entitlements for the previous year based on final population figures and the Consumer Price Index.
The estimated grant pools for the 2017-18 year, as well as the finalised grant pools for the two previous years, are as follows:
Base Grant Component
Road Grant Component
$34 954 441
$38 564 362
$73 518 803
$34 214 228
$37 289 447
$71 503 675
$34 543 821
$37 274 796
$71 818 617
In its 2014-15 Budget, the Australian Government announced that it was suspending indexation of the total financial assistance funding pool for three years, commencing 1 July 2014. While the total size of the funding pool was frozen during the indexation suspension period, the allocation of the pool itself amongst the states continued to be distributed based on the population share for the general grant component and the historical shares for the local roads component of the FAG pool. Indexation of the total financial assistance grant funding pool has been resumed from 2017-18.
Full details of the Commission's activities during 2016-17, including the Commission's 2017-18 financial assistance grant recommendations, can be found in the State Grants Commission 2016-17 Annual Report, including 2017-18 Financial Assistance Grant Recommendations (Report Number 41).
At the time of completion of the 2015-16 Annual Report, the Commission had not made its 2016-17 Heavy Vehicle Motor Tax Revenue Recommendations as it was awaiting the results of the 2014-15 Tasmanian Freight Survey to inform its decision making processes. The 2016-17 Annual Report provides details of both the 2016-17 and 2017-18 Heavy Vehicle Motor Tax Revenue Recommendations.
Recommendations for previous years can be found in the relevant annual reports on the Publications page.
Administrative support for the Commission is provided by the Department of Treasury and Finance. All costs associated with the administration of the Commission including Commissioner's stipends, wages, meeting costs and travel expenses are met by the Department, and are not deducted from the grant pools.
The role of Executive Officer of the Commission is based within the Intergovernment and Financial Policy Branch, of the Department of Treasury and Finance. Enquiries regarding the activities of, or methodology used by, the Commission should be directed to the contact below.