Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au F2019L00905 In force Legislative Instrument

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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.

Overview

The Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019 was enacted to establish the final factor for the 2018-19 financial year and the estimated factor for the 2019-20 financial year under the Local Government (Financial Assistance) Act 1995. This Act was established to provide a framework for the Commonwealth to provide financial assistance to local governments through the States and Territories. The determination process is mandated by the Act, which requires the Treasurer to estimate and then determine the financial assistance factor annually. The instrument does not require consultation as it is considered to be of a machinery nature, and it was issued by authority of the Assistant Treasurer. The purpose of this determination is to ensure that the financial assistance provided to local governments is appropriately indexed to account for changes in economic conditions. This annual determination process is integral to the ongoing support of local government services across Australia, ensuring that the financial assistance provided remains relevant and adequate to meet local government needs. The instrument was registered on the Federal Register of Legislation and commenced the day after registration. It is compatible with human rights, as it does not engage any of the applicable rights or freedoms.

Scope and Application

The Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019 applies to the financial assistance provided by the Commonwealth to local governments, administered through the states and territories. This legislation, operating under the Local Government (Financial Assistance) Act 1995, establishes the framework for the annual determination of a financial assistance factor used to index the amount of assistance available to local governments. The Act mandates that the Treasurer must determine the final factor for each financial year by 30 June and estimate the factor for the upcoming year before its commencement. The instrument in question sets out the specific final factor for the 2018-19 financial year and estimates the factor for the 2019-20 financial year, thereby ensuring that local governments receive indexed financial support from the Commonwealth. The application of this Act is confined to the Commonwealth, with no stated exclusions or exemptions, and it does not extend its application through subordinate instruments.

Key Provisions

The Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019 (subsection 8(1) and paragraph 7(3)(b) of the Local Government (Financial Assistance) Act 1995) sets the final factor for the 2018-19 financial year and the estimated factor for the 2019-20 financial year. This determination is crucial for calculating the Commonwealth financial assistance provided to local government through the states and territories. It ensures that the level of assistance is indexed annually, reflecting changes in economic and fiscal conditions. The obligations under the Act require the Treasurer to estimate the final factor before the start of each financial year and to determine the final factor by 30 June of each year. The instrument specifies the final factor for the 2018-19 financial year and the estimated factor for the 2019-20 financial year, detailing the methodology used in their calculation. Additionally, the Act mandates that the instrument is made available to the Treasurers of the states and territories, ensuring transparency and compliance with the legislative requirements. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of this determination within the Act. However, the Act’s provisions for the determination of the factors are essential for the proper administration of Commonwealth financial assistance to local government. Failure to comply with the legislative requirements could potentially lead to administrative issues or disputes regarding the allocation of financial assistance. The instrument, being a legislative instrument under the Legislation Act 2003, does not undergo disallowance or sunsetting, ensuring its continued applicability for determining the factors as required by the Act. This stability is important for the consistent and predictable distribution of financial assistance to local government entities, which rely on these factors for their annual budget planning and financial management.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.