The Federal Government has allocated the latest funds from the Financial Assistance Grants program, but the amounts could be higher.

In the 2015-16 financial year, the Australian Government will allocate $2,289 billion in Financial Assistance Grants (FAGs) for local government services to the community.

But a freeze on indexation announced in the 2014-15 Budget remains in place, which analysts say will see about $925 million less funding provided in the four years to 2017-18.

 In 2017-18, indexation is projected to be re-instated, by which time the annual funding base is estimated to be 13 per cent lower than it would have been without the impact of the freeze.

“The Budget doesn't reduce the impacts on communities from the freeze and ALGA will be advocating in the lead up to the 2016 Budget and the next Federal Election that the freeze should be lifted immediately,” the Australian Local Government Association says.

FAGs are provided in two components, general purpose assistance grants and untied local roads grants.

Both components are provided as untied funding allowing councils to spend the grants according to local priorities.

A breakdown of FAGs allocations by jurisdiction is below.

Financial Assistance Grants to local government by jurisdiction2015-16

Financial assistance grants

NSW
$m

VIC
$m

QLD
$m

WA
$m

SA
$m

TAS
$m

ACT
$m

NT
$m

TOTAL

$m

General Purpose Assistance

507.2

394.6

318.7

174.5

113.3

34.5

26.0

16.5

1,585.3

Untied Local Road Funding

204.1

145.0

131.8

107.6

38.7

37.3

22.6

16.5

703.4

TOTAL

711.3

539.6

450.5

282.0

151.1

71.8

48.6

33.0

2,288.7

More information on FAGs and the 2015-16 allocations is available here.