Circulars

What’s new or changing
• The Federal Budget for 2022-23 released 29 March again provided for an advance payment of the estimated 2022-23 FAGs.
• The advance payment will represent approximately 75% of the amount council is entitled to. Further adjustments will need to be made to the remaining payments to take into account:

• the determination by the Commonwealth Treasurer of the final adjustments for 2021-22,

• the Grants Commission’s recommendations for 2022-23.

• 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, was paid to councils on 12 April 2022.

• The balance of the grants will be paid with a corresponding reduction to the quarterly instalments during 2022-23.

• The first quarterly instalment is expected to be paid to councils in mid-August 2022, with subsequent instalments in November 2022, February 2023 and May 2023.

• All councils will be advised by letter of individual councils’ estimated entitlements for 2022-23 FAGs.

Key points

• The grants are paid under the provisions of the Local Government (Financial Assistance) Act 1995 (Cwlth).

• The total amount of the annual FAGs, and whether an advance payment is made, is determined by the Commonwealth.

• The NSW FAGs have been in transition to an improved, revised model for four years.

• The transition conditions provide 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 grant than the previous year.

• The NSW Grants Commission is working in consultation with local councils on a strategy to restore former upper and lower limits, including a range of +5% to -2%, to +6 to -4%.

• The FAGs will remain in transition with a 0% lower limit in 2022-23.

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