Queensland Methodology
The Commission is charged with developing a methodology for the distribution of the Commonwealth Financial Assistance Grant that meets the National Principles, as prescribed by the Commonwealth.
The Financial Assistance Grant is distributed according to relative need. That is, grants are distributed to councils that are unable by their own effort to provide the average level of services for local government within the State. The Commission’s task is to identify local governments who have a relative need and quantify the amount of Financial Assistance Grant they will receive.
There are two components to the Financial Assistance Grant:
- Identified Road Grant (IRG); and
- General Purpose 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. There is no requirement for horizontal equalization.
The second component of the Financial Assistance Grant is termed the Fiscal Equalisation or General Purpose component. The methodology used for allocating this component must comply with five National Principles.
Both grants are untied and can be used for any of the council’s general activities.
The 2009 Methodology review discussion paper (
PDF 559 KB) is now available.
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