EXPLANATORY STATEMENT
Issued by authority of the Assistant Treasurer
Local Government (Financial Assistance) Act 1995
Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019
Subsection 8(1) of the Local Government (Financial Assistance) Act 1995 (the Act) provides that the Treasurer must, not later than 30 June in each financial year, determine the factor, the final factor, for that financial year. The factor is to be worked out as set out in subsection 8(1) of the Act.
Further, paragraph 7(3)(b) of the Act provides that the Treasurer must, before the start of each financial year, make an estimate of the final factor for the financial year.
The Act established the current process for the provision of Commonwealth financial assistance to local government through the States and Territories. Each year, the level of financial assistance available to the States and Territories for local government purposes, is indexed by a factor which is to be estimated, and then finally determined, by the Treasurer. The Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019 (the instrument) determines the final factor for 2018-19 Financial Year and estimated factor for the 2019-20 financial year.
There were no conditions that the Treasurer needed be satisfied of before making the instrument.
In accordance with section 19 of the Acts Interpretation Act 1901, any Minister in the Treasury portfolio may determinate the factors under the Local Government (Financial Assistance) Act 1995.
No consultation has been undertaken on this instrument as the instrument is machinery in nature. In accordance with the Act, copies of this instrument will be made available to the Treasurer of each of the States and Territories.
Details of the instrument are set out in Attachment B.
The instrument is a legislative instrument for the purposes of the Legislation Act 2003. However, this instrument is not subject to disallowance or sunsetting (see subsections 44(1) and 54(1) of the Legislation Act 2003).
The instrument commenced the day after it was registered on the Federal Register of Legislation.
A statement of Compatibility with Human Rights is at Attachment A.
ATTACHMENT A
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019 (the instrument) determines the final factor for 2018-19 Financial Year and estimated factor for the 2019-20 financial year. The factors are used to determine the amount of Commonwealth financial assistance which is made available to local government for a financial year.
Human rights implications
This Legislative Instrument does not engage any of the applicable rights or freedoms.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.
ATTACHMENT B
Details of the Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019
This Attachment sets out further details of the Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019 (the Determination).
Section 1 – Name
This section specifies the name of the Determination is the Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019.
Section 2 – Commencement
This section prescribes that the Determination commences the day after the Determination is registered.
Section 3 – Authority
This section provides that the Determination is made under the Local Government (Financial Assistance) Act 1995.
Section 4 – Definitions
This section provides definitions for the purposes of the Determination.
Sections 5 and 6 – Final factor for the year 2018-19
Section 5 provides the determined final factor in relation to the 2018-19 financial year.
Section 6 provides the details for how the final factor for the 2018-19 financial year was worked out.
Sections 7 and 8 – Estimated factor for the year 2019-20
Section 7 provides the estimated factor for the 2019-20 financial year.
Section 8 provides the details for how the estimated factor for the 2019-20 financial year was worked out.