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Financial Assistance Grant

The Financial Assistance Grant is provided by the Commonwealth under the Local Government (Financial Assistance) Act 1995 (Commonwealth) and is distributed annually to 77 local governing bodies within Queensland.

There are two separately identified components to the Financial Assistance Grant:

  • General purpose grant
  • Identified road grant

The identified road grant is allocated as far as practicable on the basis of relative need for each local governing body for roads expenditure and to preserve its road assets. The national principle states that two aspects are to be considered when allocating the local roads grants, they are, relative needs and preservation of assets.

The general purpose grant is allocated to local governing bodies on the principle of horizontal fiscal equalisation, that is, grants that the local governing body receives should enable them to function by reasonable effort to an average standard. Differences in expenses for performance of functions and the capacity to raise revenue are taken into account to establish the average level of performance in revenue capacity and expenditure need.

Both grants are untied which means councils are able to use these funds for any general council activity. Payments are made in four quarterly instalments due generally around the 15th of the middle month of each quarter. Since 2009–10, an early payment of the Financial Assistance Grant has been paid by the Commonwealth Government.

Financial Assistance grant allocations

The allocation of Commonwealth funds between states and territories for the Financial Assistance Grant is increased annually in real per capita terms and includes a Consumer Price Index (CPI) adjustment based on the difference between the estimated and actual CPI from the previous year's grant, as well as a population adjustment.

The links below provide details on the allocations for the Financial Assistance Grant provided to Queensland local governing bodies.

For further information regarding grant allocations or methodology please refer to the annual report below.

For an overview of the methodology please refer to the 2021 Methodology Review.

Commission reports

Grants Commission report - distribution of the Commonwealth Financial Assistance Grant in Queensland

This is a yearly report produced by the Commission outlining the allocation of the Financial Assistance Grant for the financial year and the methodology used to allocate the grant.

Annual reports

If you require reports prior to 2012, please contact us.

Last updated: 09 Aug 2023