{"id":"F2020L00835","name":"Local Government (Financial Assistance) (Final Factor for 2019-20 and Estimated Factor for 2020-21) Determination 2020","slug":"local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440533,"registerId":"F2020L00835-fast-fetch-1775956127242","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 2019-20 and Estimated Factor for 2020-21) Determination 2020","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 2019‑20 and Estimated Factor for 2020‑21) Determination 2020\n\nI, Michael Sukkar, Minister for Housing and Assistant Treasurer, make the following determination.\n\nDated  26 June 2020\n\n \n\nMichael Sukkar\n\nMinister for Housing  Assistant 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 2019‑20\n\n5  Determination of final factor for 2019‑20\n\n6  How the final factor was worked out\n\nPart 3—Estimated factor for the year 2020‑21\n\n7  Determination of estimated factor for 2020‑21\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 2019‑20 and Estimated Factor for 2020‑21) Determination 2020.\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The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made.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 2019‑20\n\n \n\n5  Determination of final factor for 2019‑20\n\n  For the purposes of subsection 8(1) of the Act, the factor in relation to the 2019‑20 year is 1.0366.\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 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.002.png)\n\nNote 1: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2018 on 18 June 2020 (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 All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 29 April 2020 by the Statistician in respect of the 2020 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 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 and the first 2 quarterly payments in the 2020-21 year into the 2019-20 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\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.\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.\n\n2020-21 amount means the first 2 quarterly payments that were brought forward from the year 2020-21 to be paid in the year 2019-20.\n\n2018-19 final entitlement means the base figure for the year 2018-19.\n\nsub (3) factor means the result of subsection (3).\n\nPart 3—Estimated factor for the year 2020‑21\n\n \n\n7  Determination of estimated factor for 2020‑21\n\n  For the purposes of paragraph 7(3)(b) of the Act, the estimated factor in relation to the 2020‑21 year is 0.4817.\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 2020‑21 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 2019 on 18 June 2020 (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 2018 on 18 June 2020 (ABS Catalogue Number 3101.0).\n\nNote 3: The formula uses the most recent forecast of the Department of the Treasury of the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, in respect of the 2021 March quarter.\n\nNote 4: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 29 April 2020 by the Statistician in respect of the 2020 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 2020-21 year into the 2019-20 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\n2019-20 amount means the first 2 quarterly payments that were brought forward from the year 2020-21 to be paid in the year 2019-20.\n\n2020-21 amount means the amount that would have been the base figure for the year 2020-21 if the Commonwealth had not decided to bring forward any quarterly payments.\n\n2019-20 final entitlement means the base figure for the year 2019-20.\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"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This Determination performs exactly the function intended by the parent Act — setting annual factors for financial assistance grants. The unusual factor values (particularly 0.4817) reflect the specific timing adjustments required by the 2020 payment bring-forward policy, but this is a standard application of the 'special circumstances' provision in section 8(1)(c) of the Act, not a scope expansion."},"complexity_factors":["Multiple mathematical formulas with embedded variables (4 distinct formulas across Parts 2 and 3)","Cross-references to parent Act (Local Government (Financial Assistance) Act 1995) for definitions and formula structures","Conditional adjustments (paragraph 8(1)(b) rounding rules and paragraph 8(1)(c) special circumstances modifications)","Temporal complexity: deals with payment timing shifts across three financial years (2018-19, 2019-20, 2020-21)","External data dependencies: relies on ABS population estimates and CPI data, plus Treasury forecasts","Defined terms section references parent Act rather than defining locally"],"plain_english_summary":"This Determination sets the multipliers used to calculate annual Commonwealth financial-assistance grants to local governments — the final factor for 2019–20 (1.0366) and the estimated factor for 2020–21 (0.4817). The unusual values reflect payments brought forward during the COVID-19 response, so timing of receipts is adjusted to avoid double‑counting or shortfalls.\n\nIt affects local councils, state/territory grant administrators and federal agencies, and matters because these factors determine billions in local funding."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"No. The instrument applies the Act’s existing formulae to produce numeric factors for calculating grants and adjusts those numbers to reflect payment timing. It does not change who is eligible under the Act, create new entitlements, or add substantive duties; it only determines the multipliers and timing adjustments under ss 5–8."},"complexity_factors":["Application of a statutory formula under paragraph 8(1)(a) of the Local Government (Financial Assistance) Act 1995 (see instrument ss 6(1), 8(1)(a) references) — requires combining population and CPI inputs.","Use of official datasets and forecasts: ABS population estimates and CPI series are explicitly referenced (notes in ss 6(2) and 8(2)); Treasury CPI forecast used for the 2021 March quarter (note in s 8(2)).","Rounding adjustment under paragraph 8(1)(b) of the Act: the instrument increases the factor by 0.0001 where the fifth decimal digit exceeds 4 (see ss 6(3), 8(3)).","Special‑circumstances adjustment under paragraph 8(1)(c) of the Act to account for brought‑forward quarterly payments between years — involves multiplicative adjustments using base figures and moved payments (see ss 6(4), 8(4)).","Intertemporal bookkeeping: shifting two quarterly payments between financial years changes base figures used in the multipliers, so historical entitlements and projected bases must be identified precisely.","Low operational complexity for recipients: the determination produces numeric factors only; councils do not need to apply the formula themselves but are affected by the resulting grant amounts (Parts 2–3).","Dependence on external timing and data releases (ABS, Treasury) creates small implementation risk if those inputs are revised or updated after calculation (see notes to ss 6(2) and 8(2))."],"plain_english_summary":"This instrument sets the numeric multipliers used to calculate Commonwealth financial assistance grants to local governments: a final factor of 1.0366 for 2019–20 and an estimated factor of 0.4817 for 2020–21. The figures are produced by applying statutory formulae that use population and CPI data, applying a rounding rule, and adjusting for the Commonwealth’s decision to bring forward two quarterly payments across years. It changes how much and when councils receive grant money; the Department and Treasury carry out the calculations."}},"importantCases":[],"_links":{"self":"/api/acts/local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete","history":"/api/acts/local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete/history","analysis":"/api/acts/local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete/analysis","conflicts":"/api/acts/local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete/conflicts","importantCases":"/api/acts/local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete/important-cases","documents":"/api/acts/local-government-financial-assistance-final-factor-for-2019-20-and-estimated-factor-for-2020-21-dete/documents"}}