{"id":"F2019L00905","name":"Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019","slug":"local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440151,"registerId":"F2019L00905-fast-fetch-1775955893871","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Local Government (Financial Assistance) (Final Factor for 2018-19 and Estimated Factor for 2019-20) Determination 2019","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.jpeg)\n\n \n\nLocal Government (Financial Assistance) (Final Factor for 2018‑19 and Estimated Factor for 2019‑20) Determination 2019\n\nI, Michael Sukkar, Assistant Treasurer, make the following determination.\n\nDated  25 June 2019\n\n \n\nMichael Sukkar\n\nAssistant Treasurer\n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1  Name \n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\nPart 2—Final factor for the year 2018‑19\n\n5  Determination of final factor for 2018‑19\n\n6  How the final factor was worked out\n\nPart 3—Estimated factor for the year 2019‑20\n\n7  Determination of estimated factor for 2019‑20\n\n8  How the estimated factor has been worked out\n\n \n\nPart 1—Preliminary\n\n \n\n1  Name\n\n  This instrument is the Local Government (Financial Assistance) (Final Factor for 2018‑19 and Estimated Factor for 2019‑20) Determination 2019.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Local Government (Financial Assistance) Act 1995.\n\n4  Definitions\n\nNote: Paragraph 13(1)(b) of the Legislation Act 2003 has the effect that expressions have the same meaning in this instrument as in the Local Government (Financial Assistance) Act 1995 as in force from time to time.\n\n  In this instrument:\n\nthe Act means the Local Government (Financial Assistance) Act 1995.\n\nPart 2—Final factor for the year 2018‑19\n\n \n\n5  Determination of final factor for 2018‑19\n\n  For the purposes of subsection 8(1) of the Act, the factor in relation to the 2018‑19 year is 1.0300.\n\n6  How the final factor was worked out\n\n (1) Under subsection 8(1) of the Act, the factor in relation to the 2018‑19 year is to be worked out by applying the formula set out in paragraph 8(1)(a) of the Act and then adjusting the result under whichever of paragraphs 8(1)(b) and (c) of the Act are applicable.\n\nParagraph 8(1)(a) formula\n\n (2) The factor calculated under paragraph 8(1)(a) of the Act is as follows:\n\n \n\n![](image.002.png)\n\nNote 1: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2017 on 20 June 2019 (ABS Catalogue Number 3101.0).\n\nNote 2: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2016 on 21 June 2018 (ABS Catalogue Number 3101.0).\n\nNote 3: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 24 April 2019 by the Statistician in respect of the 2019 March quarter (ABS Catalogue Number 6401.0).\n\nNote 4: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 24 April 2019 by the Statistician in respect of the 2018 March quarter (ABS Catalogue Number 6401.0).\n\nParagraph 8(1)(b) modification\n\n (3) The result of subsection (2) was modified by increasing the factor by 0.0001 under paragraph 8(1)(b) of the Act as the fifth decimal place was greater than 4.\n\nParagraph 8(1)(c) modification\n\n (4) The result of subsection (3) was modified under paragraph 8(1)(c) of the Act as a result of special circumstances, being the need to account for the Commonwealth’s decision to bring forward the first 2 quarterly payments in the 2018-19 year into the 2017-18 year and the first 2 quarterly payments in the 2019-20 year into the 2018-19 year.  The modification was worked out by multiplying the result of subsection (3) by the following formula:\n\n \n\n![](image.003.png)\n\nWhere:\n\n2017-18 amount means the first 2 quarterly payments that were brought forward from the year 2018-19 to be paid in the year 2017-18 and is $1,228,343,283.\n\n2018-19 amount means the amount that would have been the base figure for the year 2018-19 if the Commonwealth had not decided to bring forward any quarterly payments and is $2,437,978,592.\n\n2019-20 amount means the first 2 quarterly payments that were brought forward from the year 2019-20 to be paid in the year 2018-19 and is $1,274,978,776.\n\n2017-18 final entitlement means the base figure for the year 2017-18 and is $2,412,309,520.\n\nsub (3) factor means the result of subsection (3).\n\nPart 3—Estimated factor for the year 2019‑20\n\n \n\n7  Determination of estimated factor for 2019‑20\n\n  For the purposes of paragraph 7(3)(b) of the Act, the estimated factor in relation to the 2019‑20 year is 0.5078.\n\n8  How the estimated factor has been worked out\n\n (1) Under subsection 8(1) of the Act, the factor in relation to the 2019‑20 year is to be worked out by applying the formula set out in paragraph 8(1)(a) of the Act and then adjusting the result under whichever of paragraphs 8(1)(b) and (c) of the Act are applicable.\n\nParagraph 8(1)(a) formula\n\n (2) The factor calculated under paragraph 8(1)(a) of the Act is as follows:\n\n \n\n![](image.004.png)\n\nNote 1: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2018 on 20 June 2019 (ABS Catalogue Number 3101.0).\n\nNote 2: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2017 on 20 June 2019 (ABS Catalogue Number 3101.0).\n\nNote 3: The formula uses the 2019-20 Budget forecast of the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, in respect of the 2020 March quarter (see www.budget.gov.au).\n\nNote 4: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 24 April 2019 by the Statistician in respect of the 2019 March quarter (ABS Catalogue Number 6401.0).\n\nParagraph 8(1)(b) modification\n\n (3) The result of subsection (2) was modified by increasing the factor by 0.0001 under paragraph 8(1)(b) of the Act as the fifth decimal place was greater than 4.\n\nParagraph 8(1)(c) modification\n\n (4) The result of subsection (3) was modified under paragraph 8(1)(c) of the Act as a result of special circumstances, being the need to account for the Commonwealth’s decision to bring forward the first 2 quarterly payments in the 2019-20 year into the 2018-19 year.  The modification was worked out by multiplying the result of subsection (3) by the following formula:\n\n \n\n![](image.005.png)\n\nWhere:\n\n2018-19 amount means the first 2 quarterly payments that were brought forward from the year 2019-20 to be paid in the year 2018-19 and is $1,274,978,776.\n\n2019-20 amount means the amount that would have been the base figure for the year 2019-20 if the Commonwealth had not decided to bring forward any quarterly payments and is $2,536,716,725.\n\n2018-19 final entitlement means the base figure for the year 2018-19 and is $2,484,678,806.\n\nsub (3) factor means the result of subsection (3).\n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument does not change the program's scope or eligibility; it only sets the numeric factors and applies timing and rounding adjustments used to calculate grant amounts for 2018–19 and 2019–20 (see Parts 2 and 3). The practical effect is to alter Commonwealth payment amounts and the accounting timing of quarterly payments rather than the underlying entitlement framework in the Act."},"complexity_factors":["Numeric factors set by formula combining CPI and population indices (Part 2 and Part 3, para 8(1)(a))","Two discrete post-formula adjustments: a rounding step to the fifth decimal (para 6(3), 8(3)) and a special‑circumstances multiplicative adjustment for brought‑forward quarterly payments (para 6(4), 8(4))","Use of external statistics and forecasts: ABS population estimates and CPI releases and the 2019‑20 Budget CPI forecast (notes to para 6(2) and 8(2))","Fixed monetary inputs for the timing adjustments (explicit dollar figures stated in paras 6(4) and 8(4)), requiring precise arithmetic to reproduce results","Limited policy discretion in this instrument (Assistant Treasurer applies statutory formula and specified modifications) but dependence on upstream data releases creates operational coupling"],"plain_english_summary":"**What this does:** This instrument fixes the numeric factors used to calculate Commonwealth financial assistance grants to local governments: a final factor of 1.0300 for 2018–19 and an estimated factor of 0.5078 for 2019–20.  \n\n**Who it affects and why it matters:** It changes how much money the Commonwealth will transfer to councils by applying CPI and population inputs, rounding rules and specific timing adjustments for quarterly payments. The Assistant Treasurer used ABS and Budget figures to set these factors; it alters payment amounts and timing but not eligibility for grants."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This determination remains tightly scoped to its original purpose under the Local Government (Financial Assistance) Act 1995. It performs the annual technical function of setting the adjustment factors for grant calculations. While the 2019-20 factor involves unusual timing adjustments due to payment bring-forwards, this is a response to specific budget circumstances rather than mission creep. The legislation has not expanded beyond its core function of operationalising the grant distribution formula."},"complexity_factors":["Multiple mathematical formulas with embedded images (5 formula images referenced but not displayed as text)","Cross-references to parent Act (Local Government (Financial Assistance) Act 1995) for definitions and calculation methods","Nested conditional modifications: base calculation → paragraph 8(1)(b) rounding adjustment → paragraph 8(1)(c) special circumstances adjustment","Temporal complexity: deals with 4 different financial years (2017-18, 2018-19, 2019-20, 2020) with overlapping payment bring-forward arrangements","Requires external data sources: ABS population estimates, CPI indices, and Budget forecasts","Special circumstances adjustment involves complex fraction calculations with 4-5 defined monetary variables per formula"],"plain_english_summary":"This determination sets the multipliers used to calculate federal financial-assistance grants to local councils: a final factor of 1.0300 for 2018–19 and an estimated factor of 0.5078 for 2019–20. The unusually low 2019–20 figure reflects the Commonwealth bringing forward two quarterly payments into 2018–19. It affects councils, state/territory distributors and taxpayers by altering grant amounts that fund local services."}},"importantCases":[],"_links":{"self":"/api/acts/local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete","history":"/api/acts/local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete/history","analysis":"/api/acts/local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete/analysis","conflicts":"/api/acts/local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete/conflicts","importantCases":"/api/acts/local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete/important-cases","documents":"/api/acts/local-government-financial-assistance-final-factor-for-2018-19-and-estimated-factor-for-2019-20-dete/documents"}}