Overview

The Local Government (Financial Assistance) (Final Factor for 2019-20 and Estimated Factor for 2020-21) Determination 2020 was enacted to provide the final factor for the 2019-20 financial year and the estimated factor for the 2020-21 financial year under the Local Government (Financial Assistance) Act 1995. This Act was introduced to establish a structured process for the Commonwealth to provide financial assistance to local governments through the states and territories. The primary problem it sought to address was ensuring that local governments received adequate financial support from the Commonwealth, which was to be indexed annually. The determination of these factors is a crucial step in that process, providing a mechanism to adjust the financial assistance levels in line with economic conditions and other relevant factors. Enacted by the Assistant Treasurer, the policy objective is to ensure the continued financial viability and operational capacity of local governments, which are fundamental to the delivery of essential services at the community level. No consultation was undertaken on this determination as it is considered to be of a machinery nature, focusing on the administrative mechanics of the financial assistance process rather than policy changes that would require broader stakeholder input. The determination is a legislative instrument under the Legislation Act 2003, and while it is subject to registration and availability requirements, it is not subject to disallowance or sunsetting provisions. This ensures that the process for determining financial assistance factors remains consistent and predictable, thereby supporting the ongoing relationship between the Commonwealth and local governments.

Scope and Application

The Local Government (Financial Assistance) (Final Factor for 2019-20 and Estimated Factor for 2020-21) Determination 2020, under the Local Government (Financial Assistance) Act 1995, specifies the final financial assistance factor for the 2019-20 financial year and estimates the factor for the 2020-21 financial year. These factors are critical in determining the amount of Commonwealth financial assistance available to local governments. This legislative instrument applies to the Commonwealth Treasurer and the local governments in each state and territory. The instrument adheres to the process outlined in the Act for determining the financial assistance factors, which is designed to provide consistent and predictable funding to local governments across Australia. The factors determined under this instrument are applicable nationwide, impacting all local governments receiving Commonwealth financial assistance. This determination is not subject to disallowance or sunsetting, ensuring its continued relevance and application without legislative review for a set period.

Key Provisions

The Local Government (Financial Assistance) (Final Factor for 2019-20 and Estimated Factor for 2020-21) Determination 2020 specifies the final factor for the 2019-20 financial year and the estimated factor for the 2020-21 financial year, as required under subsection 8(1) of the Local Government (Financial Assistance) Act 1995 (the Act). The final factor for the 2019-20 financial year is provided in section 5 of the Determination, and the estimated factor for the 2020-21 financial year is detailed in section 7. Both factors are integral in determining the amount of financial assistance the Commonwealth provides to local governments through the States and Territories. The methodology for calculating these factors is outlined in sections 6 and 8 of the Determination. The Act imposes several obligations on the Treasurer, primarily the requirement to determine the final factor for the previous financial year by 30 June each year, as stipulated in subsection 8(1). Additionally, the Treasurer must estimate the final factor for the upcoming financial year before it begins, as per paragraph 7(3)(b) of the Act. These determinations are crucial for the financial planning and budgeting processes of local governments and the states or territories that receive the assistance. The Determination itself does not require the Treasurer to be satisfied of any specific conditions before making it, though it does specify the exact factors to be applied. In terms of compliance, any breaches of the obligations outlined in the Act could lead to legal consequences, although the Determination does not specify any particular offences or penalties for non-compliance. However, any actions taken under the Act must align with the human rights standards as declared in relevant international instruments. The Determination explicitly states that it is compatible with human rights and does not engage any applicable rights or freedoms, as detailed in the Statement of Compatibility with Human Rights (Attachment A). This ensures that the financial assistance process does not infringe upon the rights of individuals or communities. The Determination also notes that it is not subject to disallowance or sunsetting provisions, as per subsections 44(1) and 54(1) of the Legislation Act 2003. This means that once registered, the Determination becomes effective immediately, and its provisions are in force until superseded by new legislation. The commencement date is detailed in section 2 of the Determination, which specifies that it takes effect the day after it is registered. This ensures that there is no gap in the financial assistance framework, maintaining continuity in support for local governments.