Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024

Administered by Department of the Treasury

Legislation au F2024L00812 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Competition, Charities and Treasury

Local Government (Financial Assistance) Act 1995

Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024

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 that 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 2023-24 and Estimated Factor for 2024-25) Determination 2024 (the instrument) determines the final factor for the 2023-24 financial year and the estimated factor for the 2024-25 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 determine 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 A.

The instrument is a legislative instrument for the purposes of the Legislation Act 2003. However, this instrument is not subject to disallowance or sunsetting due to the operation of subsections 44(1) and 54(1) of the Legislation Act 2003. The enabling legislation facilitates the operation of an intergovernmental scheme involving the Commonwealth providing financial assistance to local government through the States and Territories. The enabling legislation authorises the instrument to be made for the purposes of this arrangement. The factors determined by the instrument are largely mechanical in nature and been derived from statistics published by the Australian Statistician.

A Policy Impact Analysis is not required as the instrument is machinery in nature (OIA24-07548).

The instrument commenced immediately after it was registered on the Federal Register of Legislation.

A statement of Compatibility with Human Rights is at Attachment B.

ATTACHMENT A

Details of the Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024

This Attachment sets out further details of the Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024 (the Determination).

Section 1 – Name

This section specifies the name of the Determination is the Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024.

Section 2 – Commencement

This section prescribes that the Determination commences immediately 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 2023-24

Section 5 provides the determined final factor in relation to the 2023-24 financial year.

Section 6 provides the details for how the final factor for the 2023-24 financial year was worked out.

Sections 7 and 8 – Estimated factor for the year 2024-25

Section 7 provides the estimated factor for the 2024-25 financial year.

Section 8 provides the details for how the estimated factor for the 2024-25 financial year was worked out.


ATTACHMENT B

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 2023-24 and Estimated Factor for 2024-25) Determination 2024

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 2023-24 and Estimated Factor for 2024-25) Determination 2024 (the instrument) determines the final factor for the 2023-24 financial year and the estimated factor for the 2024-25 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.

Overview

The Local Government (Financial Assistance) Act 1995 was enacted to establish a framework for the provision of financial assistance from the Commonwealth to local governments through the states and territories. This legislation sought to address the need for a structured and predictable means of funding local government operations, ensuring that local councils could effectively carry out their responsibilities. The Commonwealth Parliament enacted this Act to create an intergovernmental financial assistance scheme, facilitating a stable flow of funds to support local government activities. The policy objective was to ensure that local governments receive adequate financial support to perform their essential functions, thereby enhancing the overall efficiency and effectiveness of local governance. The Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024, made under the authority of the Assistant Minister for Competition, Charities and Treasury, determines the financial assistance factors for the specified financial years. This determination is a legislative instrument that operates under the provisions of the Legislation Act 2003, with no requirement for disallowance or sunsetting due to its mechanical nature. The instrument sets out the final factor for the 2023-24 financial year and estimates the factor for the 2024-25 financial year, crucial for calculating the Commonwealth's financial support to local governments. The process for determining these factors is mandated by the Act and involves statistical data published by the Australian Statistician.

Scope and Application

The Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024 applies to the Commonwealth government, specifically the Treasurer, who is responsible for determining the factors for financial assistance to local governments provided through the States and Territories. This instrument is an implementation of the Local Government (Financial Assistance) Act 1995, which governs the process of providing financial assistance to local governments by the Commonwealth through the States and Territories. The factors determined by this instrument are mechanical calculations based on statistics published by the Australian Statistician and do not require any ministerial satisfaction of conditions. The instrument applies nationally, with the factors being used to calculate the financial assistance that will be provided to local governments across Australia for the specified financial years. The instrument is not subject to disallowance or sunsetting and is considered machinery in nature, which exempts it from certain legislative scrutiny processes.

Key Provisions

The Local Government (Financial Assistance) (Final Factor for 2023-24 and Estimated Factor for 2024-25) Determination 2024 (the Determination) sets out the final factor for the 2023-24 financial year and the estimated factor for the 2024-25 financial year under the Local Government (Financial Assistance) Act 1995 (the Act). Section 5 of the Determination provides the final factor for the 2023-24 financial year, while Section 7 provides the estimated factor for the 2024-25 financial year. These factors are crucial as they determine the amount of Commonwealth financial assistance available to local governments through the States and Territories. The final factor for 2023-24 was determined based on the information and calculations detailed in Section 6, while the estimated factor for 2024-25 is provided in Section 8, detailing the methodology used. The Determination imposes specific obligations on the parties involved. The Treasurer, under subsection 8(1) of the Act, is required to determine the final factor for each financial year by 30 June of that year. Additionally, before the start of each financial year, the Treasurer must estimate the final factor for that year, as per paragraph 7(3)(b) of the Act. The Determination itself is made under the authority provided in section 19 of the Acts Interpretation Act 1901 and will be communicated to the Treasurers of the States and Territories. There were no conditions the Treasurer needed to be satisfied of before making the Determination. Failure to comply with the requirements of the Act and the Determination may result in civil or criminal consequences, although the Determination itself does not explicitly state any penalties. The Act generally provides that any Minister in the Treasury portfolio may determine the factors, and the instrument is not subject to disallowance or sunsetting due to the operation of subsections 44(1) and 54(1) of the Legislation Act 2003. The instrument is machinery in nature and does not engage any applicable human rights, as outlined in the Statement of Compatibility with Human Rights attached to the Determination.

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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.