The Federal Minister for Local Government Simon Crean has announced a review into the Local Government Financial Assistance Grants program to be conducted by the Commonwealth Grants Commission.

 

The Australian Government has provided over $37 billion in Financial Assistance Grants to local government since 1974.

 

Mr Crean said the $2.1 billion allocated to the program this financial year is made up of a general purpose grant and local roads grant that are paid through the states and territories to local government and used by councils according to local priorities.

 

"Whilst the program has been a successful one and allowed local governments to invest in key local priorities, a comprehensive review of the Local Government Financial Assistance Grants program has not occurred for many years—a lot has changed since then," Mr Crean said.

 

"The review will identify tangible measures for improving the impact of Financial Assistance Grants on the effectiveness of local governments and their ability to provide an equitable level of service to their residents.

 

"The review will be conducted in two stages to allow time to take into account the Commissions other key activities.

 

"The initial stage will examine the policy and administration of the Financial Assistance Grants program to make the most of existing funding. 

 

"This will include making sure the National Principles that guide the distribution of Financial Assistance Grants to local governments are still valid.

 

"This review will take ongoing input from the States, Territories and local government as it progresses. 

 

"The Commission is expected to report to Government in December 2013."