{"id":"F2023L00887","name":"Local Government (Financial Assistance) (Final Factor for 2022-23 and Estimated Factor for 2023-24) Determination 2023","slug":"local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104557,"registerId":"commonwealth-F2023L00887-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Local Government (Financial Assistance) (Final Factor for 2022-23 and Estimated Factor for 2023-24) Determination 2023.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the Local Government (Financial Assistance) Act 1995.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 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\n> the Act means the Local Government (Financial Assistance) Act 1995.","sortOrder":3},{"sectionNumber":"Part 2","sectionType":"part","heading":"Final factor for the year 2022-23","content":"## Part 2—Final factor for the year 2022-23","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Determination of final factor for 2022-23","content":"#### 5 Determination of final factor for 2022-23\n\n  For the purposes of subsection 8(1) of the Act, the factor in relation to the 2022‑23 year is 1.1173.","sortOrder":5},{"sectionNumber":"6","sectionType":"section","heading":"How the final factor was worked out","content":"#### 6 How the final factor was worked out\n\n  (1) Under subsection 8(1) of the Act, the factor in relation to the 2022‑23 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  Paragraph 8(1)(a) formula\n  (2) The factor calculated under paragraph 8(1)(a) of the Act is as follows:\n\n![The factor calculated under paragraph 8(1)(a) of the Act](image.002.png)\n\n> Note 1: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2021 on 15 June 2023 (published and available at www.abs.gov.au).\n\n> Note 2: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2020 on 28 June 2022 (published and available at www.abs.gov.au).\n\n> Note 3: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 26 April 2023 by the Statistician in respect of the 2023 March quarter (published and available at www.abs.gov.au).\n\n> Note 4: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 27 April 2022 by the Statistician in respect of the 2022 March quarter (published and available at www.abs.gov.au).\n\n  Paragraph 8(1)(b) modification\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  Paragraph 8(1)(c) modification\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 3 quarterly payments in the 2022-23 year into the 2021-22 year and all of the payments in the 2023-24 year into the 2022-23 year. The modification was worked out by multiplying the result of subsection (3) by the following formula:\n\n  ![The modification was worked out by multiplying the result of subsection (3) by the following formula](image.003.png)\n\n  Where:\n\n> 2021-22 amount means the first 3 quarterly payments that were brought forward from the year 2022-23 to be paid in the year 2021-22.\n\n> 2022-23 amount means the amount that would have been the base figure for the year 2022-23 if the Commonwealth had not decided to bring forward any quarterly payments.\n\n> 2023-24 amount means all of the payments that were brought forward from the year 2023-24 to be paid in the year 2022-23.\n\n> 2021-22 final entitlement means the base figure for the year 2021-22.\n\n> sub (3) factor means the result of subsection (3).","sortOrder":6},{"sectionNumber":"Part 3","sectionType":"part","heading":"Estimated factor for the year 2023-24","content":"## Part 3—Estimated factor for the year 2023-24","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Determination of estimated factor for 2023-24","content":"#### 7 Determination of estimated factor for 2023-24\n\n  For the purposes of paragraph 7(3)(b) of the Act, the estimated factor in relation to the 2023‑24 year is 0.0015.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"How the estimated factor has been worked out","content":"#### 8 How the estimated factor has been worked out\n\n  Under subsection 8(1) of the Act, the factor in relation to the 2023‑24 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\n  (2) The factor calculated under paragraph 8(1)(a) of the Act is as follows:\n\n![The factor calculated under paragraph 8(1)(a) of the Act](image.004.png)\n\n> Note 1: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2022 on 15 June 2023 (published and available at www.abs.gov.au).\n\n> Note 2: Under section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2021 on 15 June 2023 (published and available at www.abs.gov.au).\n\n> Note 3: The formula uses the 2023-24 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 2024 March quarter.\n\n> Note 4: The formula uses the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published on 26 April 2023 by the Statistician in respect of the 2023 March quarter (published and available at www.abs.gov.au).\n\n  Paragraph 8(1)(c) modification\n  (3) The result of subsection (2) 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 all of the payments in the 2023‑24 year into the 2022-23 year. The modification was worked out by multiplying the result of subsection (2) by the following formula:\n\n![Start formula open bracket start fraction 2023-24 amount minus 2022-23 amount over 2022-23 final entitlement end fraction close bracket times open bracket start fraction 1 over sub (2) factor end fraction close bracket end formula ](image.005.png)\n\n  Where:\n\n> 2022-23 amount means all of the payments that were brought forward from the year 2023-24 to be paid in the year 2022-23.\n\n> 2023-24 amount means the amount that would have been the base figure for the year 2023-24 if the Commonwealth had not decided to bring forward any payments.\n\n> 2022-23 final entitlement means the base figure for the year 2022-23.\n\n> sub (2) factor means the result of subsection (2).","sortOrder":9}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The instrument does not change the statutory scope of the Act. It implements the Act’s calculation mechanism by specifying numeric factors and applying prescribed adjustments (rounding and timing modifications to account for the Commonwealth’s decision to bring forward payments), thereby affecting grant amounts and timing but not the Act’s substantive coverage."},"complexity_factors":["Uses a statutory formula combining population estimates and CPI indices (requires accurate external data inputs).","Relies on ABS population estimates and Treasury CPI forecasts (data-timing and source-dependence increase operational complexity).","Includes a rounding rule affecting the fifth decimal place (minor numerical adjustment with precise rule).","Applies multiplicative modifications to account for special circumstances (bringing forward quarterly payments), which alters temporal allocation of amounts.","Cross-references multiple provisions of the Local Government (Financial Assistance) Act 1995 (legal cross-linking raises interpretive needs).","Two different treatments for a final factor (2022–23) and an estimated factor (2023–24) requiring separate calculations and different data vintage.","Some formula material is presented as embedded images rather than plain text, which complicates automated extraction and review."],"plain_english_summary":"This instrument fixes the numeric multipliers used to calculate Commonwealth financial-assistance grants to local governments: a final factor of 1.1173 for 2022–23 and an estimated factor of 0.0015 for 2023–24. It applies the formula in the Local Government (Financial Assistance) Act 1995 using population and CPI inputs, then adjusts results for rounding and for the Commonwealth’s decision to bring forward some quarterly payments, which changes the timing and amounts recognised in each year."},"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 scope remains tightly focused on the statutory calculation requirements. The inclusion of both a final factor (2022-23) and estimated factor (2023-24) in one instrument is standard administrative practice and does not represent scope creep."},"complexity_factors":["Mathematical formulas with multiple variables embedded as images (5 formula images referenced but not displayed as text)","Cross-references to parent Act (Local Government (Financial Assistance) Act 1995) for definitions and core calculation methodology","Nested conditional logic: paragraph 8(1)(a) calculation → paragraph 8(1)(b) rounding adjustment → paragraph 8(1)(c) special circumstances modification","Temporal complexity: involves 4 different financial years (2021-22, 2022-23, 2023-24, 2024) and multiple ABS publication dates","Special circumstances adjustments requiring understanding of payment timing shifts (bringing forward quarterly payments between years)","Defined terms specific to the formulas (2021-22 amount, 2022-23 amount, etc.) that are not standard legislative definitions"],"plain_english_summary":"This Determination sets two numeric “factors” used to calculate federal financial assistance grants to Australian local councils: 1.1173 for 2022–23 and an estimated 0.0015 for 2023–24.  \n\nThese factors, derived from population growth, CPI inflation and adjustments for payments brought forward, determine how much funding flows from the Commonwealth (via states/territories) to councils—affecting budgets for roads, services and facilities."}},"importantCases":[],"_links":{"self":"/api/acts/local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete","history":"/api/acts/local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete/history","analysis":"/api/acts/local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete/analysis","conflicts":"/api/acts/local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete/conflicts","importantCases":"/api/acts/local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete/important-cases","documents":"/api/acts/local-government-financial-assistance-final-factor-for-2022-23-and-estimated-factor-for-2023-24-dete/documents"}}