Circulars

What’s new or changing

• The Commonwealth Government has announced the advance payment of the preliminary 2024-25 FA Grants will represent approximately 85% of the amount councils are entitled to.
• Further adjustments to the remaining payments will take into account:
  1. the determination by the Commonwealth Treasurer of the final adjustments for 2023‑24
  2. the Local Government Grants Commission’s (the Commission) final recommendations for 2024-25.
• The Commission will advise councils of the recommendations when they have been finalised after the Commonwealth advises the amount of the final adjustments.

What this will mean for your council

• The advance payment amount, as set out in the attached schedule, will be paid to councils without delay.
• A media release advising of the Commonwealth’s decision to make an advance payment is attached.
• The balance of the grants will be paid in quarterly instalments during 2024 25.
• The first quarterly instalment is expected to be paid to councils in mid-August 2024, with subsequent instalments in November 2024, February 2025, and May 2025.
• All councils will be advised by letter of individual estimated entitlements for the 2024-25 FA Grants.

Key points

• The grants are paid under the provisions of the Local Government (Financial Assistance) Act 1995 (Cth).
• The total amount of the annual FA Grants, and whether and when an advance payment is made, is determined by the Federal Government.
• Over the past 6 years, the FA Grants program has been transitioning to a revised funding model which provides an upper limit of +5% and lower limit 0% on an individual council’s’ general purpose component when compared year on year.
• No council has been receiving a lower general purpose grant than the previous year during transition.
• The NSW Grants Commission has been working in consultation with local councils on a strategy to restore the former upper and lower limits.
• The Commission has resolved to commence restoration of the former upper and lower limits in 2025-26, which is anticipated to be within a range of +6 to -4%.
• The FA Grants will remain in transition with a 0% lower limit in 2024-25.

Where to go for further information

• Updates about the transition and general information are available on the Office of Local Government Website: https://www.olg.nsw.gov.au/commissions-and-tribunals/grants-commission
• Please contact Helen Pearce, Executive Officer, if you require any further information.

Helen Pearce
Executive Officer
Grants Commission