{"id":"F2021L00882","name":"Local Government (Financial Assistance) (Final Factor for 2020-21 and Estimated Factor for 2021-22) Determination 2021","slug":"local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440905,"registerId":"F2021L00882-fast-fetch-1775956364148","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 2020-21 and Estimated Factor for 2021-22) Determination 2021","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\ntitle: 210621-LI-TSY_46_504-Local Gov Factors.master\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 2020‑21 and Estimated Factor for 2021‑22) Determination 2021\n\nI, Michael Sukkar, Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing, make the following determination.\n\nDated     24 June 2021\n\n \n\nMichael Sukkar\n\nAssistant Treasurer  Minister for Housing  Minister for Homelessness, Social and Community Housing\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 2020‑21\n\n5  Determination of final factor for 2020‑21\n\n6  How the final factor was worked out\n\nPart 3—Estimated factor for the year 2021‑22\n\n7  Determination of estimated factor for 2021‑22\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 2020‑21 and Estimated Factor for 2021‑22) Determination 2021.\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 2020‑21\n\n \n\n5  Determination of final factor for 2020‑21\n\n  For the purposes of subsection 8(1) of the Act, the factor in relation to the 2020‑21 year is 1.0117.\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 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.002.png)\n\nNote 1: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2019 on 17 June 2021 (published and available at www.abs.gov.au).\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 (published and available at www.abs.gov.au).\n\nNote 3: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 28 April 2021 by the Statistician in respect of the 2021 March quarter (published and available at www.abs.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 29 April 2020 by the Statistician in respect of the 2020 March quarter (published and available at www.abs.gov.au).\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 and the first 2 quarterly payments in the 2021-22 year into the 2020-21 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\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\n2021-22 amount means the first 2 quarterly payments that were brought forward from the year 2021-22 to be paid in the year 2020-21.\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\nPart 3—Estimated factor for the year 2021‑22\n\n \n\n7  Determination of estimated factor for 2021‑22\n\n  For the purposes of paragraph 7(3)(b) of the Act, the estimated factor in relation to the 2021‑22 year is 0.5108.\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 2021‑22 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 2020 on 17 June 2021 (published and available at www.abs.gov.au).\n\nNote 2: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2019 on 17 June 2021 (published and available at www.abs.gov.au).\n\nNote 3: The formula uses the 2021-22 Budget 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 2022 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 28 April 2021 by the Statistician in respect of the 2021 March quarter (published and available at www.abs.gov.au).\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 2021-22 year into the 2020-21 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\n2020-21 amount means the first 2 quarterly payments that were brought forward from the year 2021-22 to be paid in the year 2020-21.\n\n2021-22 amount means the amount that would have been the base figure for the year 2021-22 if the Commonwealth had not decided to bring forward any quarterly payments.\n\n2020-21 final entitlement means the base figure for the year 2020-21.\n\nsub (3) factor means the result of subsection (3).\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This Determination performs exactly the function intended by the Local Government (Financial Assistance) Act 1995 — setting the annual factors for calculating grants. The inclusion of COVID-19 related timing adjustments (brought-forward payments) is a response to specific circumstances rather than scope creep. The instrument remains tightly focused on its statutory purpose."},"complexity_factors":["Short instrument (8 sections across 3 Parts)","Only 1 defined term ('the Act')","Heavy reliance on external formulas in the parent Act (Local Government (Financial Assistance) Act 1995)","Mathematical complexity in sections 6 and 8 with multi-step calculations involving population estimates, CPI indices, and timing adjustments","Two 'special circumstances' modifications requiring understanding of brought-forward payment arrangements across three financial years (2019-20, 2020-21, 2021-22)","Cross-references to Australian Bureau of Statistics publications and Treasury forecasts","Nested conditional logic: base formula → rounding adjustment → special circumstances adjustment"],"plain_english_summary":"This Determination sets two multipliers used to calculate Commonwealth financial‑assistance grants to local councils: a final factor of 1.0117 for 2020–21 and an estimated factor of 0.5108 for 2021–22. The unusually low 2021–22 estimate reflects payments that were brought forward into 2020–21 during the pandemic. It affects council budgets, state distribution of funds, and ultimately local services funded by those grants."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This determination does not change who is eligible for financial assistance or the Act’s statutory scheme. It only sets the numeric final factor for 2020‑21 (s5) and the estimated factor for 2021‑22 (s7), applying the Act’s formula and the specified rounding and brought‑forward payment adjustments (s6(2)–(4), s8(2)–(4))."},"complexity_factors":["Applies a statutory arithmetic formula based on population and CPI data (Part 2 s6(2) and Part 3 s8(2)).","Includes a precise rounding rule that can increase the factor by 0.0001 if the fifth decimal exceeds 4 (Paragraph 8(1)(b); s6(3), s8(3)).","Requires special cross‑year adjustments to account for brought‑forward quarterly payments, implemented as multiplicative formulas that reference base figures and entitlements across three years (Paragraph 8(1)(c); s6(4), s8(4)).","Relies on external data inputs: ABS population estimates and CPI releases, and a Treasury CPI forecast for 2021‑22 (notes to s6(2) and s8(2)).","Small decimal changes materially affect grant shares, so the instrument is numerically sensitive and requires careful arithmetic and source‑data accuracy.","Legal form is a ministerial determination under the Local Government (Financial Assistance) Act 1995 (s3, s5, s7), so discretion is bounded by the Act but exercised in setting the numeric factors."],"plain_english_summary":"This instrument sets the numeric multipliers used to calculate Commonwealth financial assistance grants to local councils: a final factor of 1.0117 for 2020‑21 and an estimated factor of 0.5108 for 2021‑22. The figures are produced by the statutory population-and‑CPI formula and then adjusted for rounding and for the Commonwealth’s decision to bring forward two quarterly payments between financial years. It therefore directly changes the dollar amounts and timing of grant payments to local governments."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete","history":"/api/acts/local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete/history","analysis":"/api/acts/local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete/analysis","conflicts":"/api/acts/local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete/conflicts","importantCases":"/api/acts/local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete/important-cases","documents":"/api/acts/local-government-financial-assistance-final-factor-for-2020-21-and-estimated-factor-for-2021-22-dete/documents"}}