Access keys | Skip to primary navigation | Skip to secondary navigation | Skip to content | Skip to footer |
Problems viewing this site
Home > Queensland Methodology

General Purpose Grant

Fiscal Equalisation Component

The methodology used for allocating this component must comply with five National Principles. The general purpose pool is distributed under these Principles as:

Every local governing body in the State is entitled to a Minimum Grant. This grant is equivalent to thirty percent of the general purpose pool distributed on a per capita basis. In 2005-06 the amount is $16.78 per capita. Three Queensland councils (Brisbane, Gold Coast and Logan) receive only the Minimum General Purpose Grant. All other councils receive the Minimum Grant plus an equalisation component based on their relative need.

To determine relative need, the Commission develops averages for revenue raising and expenditure on services to be applied equally to all local governments within the State.

As part of the methodology review conducted in 2002/03 the Commission published revenue and expenditure assessments for each council. Since the review these assessments have unintentionally been mis-interpreted by some councils; for example, some councils have viewed rate revenue assessments calculated by the Commission as an indication of what their council should raise in revenue.

The Commission's methodology only calculates what each council would raise in revenue and spend on services if it was the average Queensland council. The model's only purpose is to allocate the general purpose grant in line with the National Principles, it is not a financial decision-making model for councils. Accordingly, the Commission no longer publishes revenue and expenditure assessments for councils.

Cost adjustors are the means by which the Commission establishes the relative general purpose grant need of each council. Cost adjustors are explained and published on this website and in the Commission's publications.

There are six stages of the process for allocating the general purpose component. These are:

These steps are covered in the Council Visit presentations.

Further information on the methodology used for the distribution of the Financial Assistance Grant is detailed in the Commission's 2004 report (Help with Downloading and Printing PDF 843 kB).

Last updated: 10 October 2005