The Australian Government supports local government through the Financial Assistance Grant (FA Grant) program in accordance with the
Local Government (Financial Assistance) Act 1995 (Cwth) (the Commonwealth legislation).
The annual grant to each council comprises two components: a general purpose component (or base grant) and an identified local road component (or road grant).
The objectives of the base grant include improving the capacity of local governments to provide their communities with an equitable level of services and increasing local government’s efficiency and effectiveness. The objective of the road grant is to support local government with funding allocated on the basis of relative needs for roads expenditure and to preserve road assets.
The Australian Government determines each state and territory’s share of the national base grant pool based on population share. The national road grant pool is allocated between states and territories based on proportions historically agreed to by all jurisdictions. Both components of the grant are untied, allowing each council to spend its grant according to local priorities.
In recent years, the quantum of the national grant pool (both base and road grant) has increased annually in line with changes in population and the Consumer Price Index. However, the Australian Treasurer has the discretion to alter this annual indexation.
Each financial year, the Australian Government provides estimated grant pools on which the Commission bases its recommendations. The Australian Government also finalises each state's grant entitlements for the previous year based on final population figures and the movements in the Consumer Price Index.
The estimated grant pools for the 2025-26 year, as well as the finalised grant pools for the two previous years, are as follows:
| |
Base Grant Component |
Road Grant Component |
Total |
2025-26
(estimate)
| $50 148 145
| $56 119 977
| $106 268 122 |
2024-25
(final)
| $48 712 374
| $53 349 232
| $102 061 606
|
2023-24
(final)
| $48 180 922
| $50 854 152
| $99 035 074
|
Full details of the Commission's recommendations for the distribution of the FA Grant are provided in the Annual Reports and supporting Data Tables, which can be found on the Publications page. The Annual Reports also include the Commission's recommendations for the distribution of State heavy vehicle motor taxes amongst councils. The most recent published Annual Report is 2023-24.
Individual council recommendations for the distribution of the 2025-26 FA Grant can be found on the Allocations page.