Fact sheet 1: Key points
- Financial Assistance Grants (FAGs) to local government will increase in 2006-07 to $ 1,676.2million (consisting of $1161 million General Purpose Grants and $ 515.2 million in local roads grants). This is estimated to be $ 58.7 million above the current financial year, and a nominal increase of 3.6 %.
- In 2006-07, FAGs represents 0.72% of total Commonwealth taxation revenue.
- Total direct funding for local government in 2006-07 will be $2,173 million. This includes FAGs, Roads to Recovery and other Specific Purpose Payments (SPPs).
- This is in the context of a Federal Budget surplus of $10.8 billion.
- The Government is to provide additional funding of $2.3 billion to road and rail projects, increasing Auslink to a $15 billion program from 2004-05 to 2008 -09.This includes funding for the Hume ($800 million), Bruce ($220 million) and Pacific Highways ($160 million).
- The Government will provide an additional $307.5 million in 2005-06 to local, state and territory governments for investing in local roads as a supplement to the Auslink Roads to Recovery program. This is additional to funding committed in last years budget.
- $270 million will be provided to improve the rail tack quality on the North South rail corridor.
- The Government will provide an additional $500 million to the Murray-Darling Commission to undertake a range of new capital works and other initiatives to enhance environmental flows.
- From 1 July 2006 the Government is removing the cap on the number of outside school hours care and family day care places. This will cost approximately $60 million over 4 years and is estimated to create an additional 25,000 places.
- The budget provides an extra $79 million for initiatives to address drug and alcohol abuse including $48 million to combat psychostimulant and cannabis use.
- The budget provides an additional $19 million to increase community care access in rural and remote areas.
- The Government is committing an extra $1.9 billion over 5 years to mental health services. This includes $52 million for extra mental health services in rural and remote areas.
- The Government has committed an additional $488 million (including $115 million capital) over 5 years for strengthening Indigenous communities.
For information about ALGA's analysis of the Budget regarding Key points please contact:
- John Pritchard
- Executive Director, Policy and Research
Australian Local Government Association - Phone: 02 6122 9414
- john.pritchard@alga.asn.au