{"id":"F2025L00770","name":"Local Government (Financial Assistance) (Final Factor for 2024-25 and Estimated Factor for 2025-26) Determination 2025","slug":"local-government-financial-assistance-final-factor-for-2024-25-and-estimated-factor-for-2025-26-dete","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442875,"registerId":"F2025L00770-fast-fetch-1775957798778","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 2024-25 and Estimated Factor for 2025-26) Determination 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nLocal Government (Financial Assistance) (Final Factor for 2024-25 and Estimated Factor for 2025-26) Determination 2025\n\nI, Andrew Leigh, Assistant Minister for Productivity, Competition, Charities and Treasury, make the following determination.\n\nDated   26  June 2025\n\n \n\nDr Andrew Leigh\n\nAssistant Minister for Productivity, Competition, Charities and Treasury\n\nParliamentary Secretary to the 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 2024-25 year\n\n5 Determination of final factor for 2024-25\n\n6 How the final factor was worked out\n\nPart 3—Estimated factor for the 2025-26 year\n\n7 Determination of estimated factor for 2025-26\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 2024-25 and Estimated Factor for 2025-26) Determination 2025.\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The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made.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: Expressions have the same meaning in this instrument as in the Local Government (Financial Assistance) Act 1995 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\nthe Act means the Local Government (Financial Assistance) Act 1995.\n\nPart 2—Final factor for the 2024-25 year\n\n \n\n5  Determination of final factor for 2024-25\n\n  For the purposes of subsection 8(1) of the Act, the factor in relation to the 2024‑25 year is 0.7945.\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 2024-25 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![Start formula open bracket start fraction 26,949,102 over 26,310,635 end fraction close bracket multiplied by open bracket start fraction 140.7 over 137.4 end fraction close bracket equals 1.04887 end formula.](image.002.png)\n\n \n\nNote 1: For the purposes of section 4A of the Act, the Statistician made the estimate of the population of Australia as at 31 December 2023 on 19 June 2025 (published and available at www.abs.gov.au).\n\nNote 2: For the purposes of section 4A of the Act, the Statistician made the estimate of the population of Australia as at 31 December 2022 on 13 June 2024 (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 30 April 2025 by the Statistician in respect of the 2025 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 24 April 2024 by the Statistician in respect of the 2024 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 85 per cent of the payments in the 2024-25 year into 2023-24 and 50 per cent of the payments in the 2025-26 year into the 2024-25 year. The modification was worked out by multiplying the result of subsection (3) by the following formula:\n\n \n\n![Start formula open bracket start fraction 2024-25 amount minus 2023-2024 amount plus 2025-26 amount over 2023-24 final entitlement end fraction close bracket multiplied by open bracket start fraction 1 over sub (3) factor end fraction close bracket end formula.](image.003.png)\n\n \n\nWhere:\n\n2024-25 amount means the amount that would have been the base figure for the year 2024-25 if the Commonwealth had not decided to bring forward any payments.\n\n2023-24 amount means the 85 per cent of payments that were brought forward from the year 2024-25 to be paid in the year 2023-24.\n\n2025-26 amount means the 50 per cent of payments that were brought forward from the year 2025-26 to be paid in the year 2024-25.\n\n2023-24 final entitlement means the base figure for the year 2023-24.\n\nsub (3) factor means the result of subsection (3).\n\nPart 3—Estimated factor for the 2025-26 year\n\n \n\n7  Determination of estimated factor for 2025-26\n\n  For the purposes of paragraph 7(3)(b) of the Act, the estimated factor in relation to the 2025-26 year is 0.7739.\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 2025-26 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![Start formula open bracket start fraction 27,395,019 over 26,949,102 end fraction close bracket multiplied by open bracket start fraction 145.6 over 140.7 end fraction close bracket equals 1.05195 end formula.](image.004.png)\n\n \n\nNote 1: For the purposes of section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2024 on 19 June 2025 (published and available at www.abs.gov.au).\n\nNote 2: For the purposes of section 4A, the Statistician made the estimate of the population of Australia as at 31 December 2023 on 19 June 2025 (published and available at www.abs.gov.au).\n\nNote 3: The formula uses the 2025-26 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 2026 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 30 April 2025 by the Statistician in respect of the 2025 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 50 per cent of the payments in the 2025-26 year into the 2024-25 year. The modification was worked out by multiplying the result of subsection (3) by the following formula:\n\n \n\n![Start formula open bracket start fraction 2025-26 amount minus 2024-25 amount over 2024-25 final entitlement end fraction close bracket multiplied by open bracket start fraction 1 over sub (3) factor end fraction close bracket end formula.](image.005.png)\n\n \n\nWhere:\n\n2025-26 amount means the amount that would have been the base figure for the year 2025-26 if the Commonwealth had not decided to bring forward any payments.\n\n2024-25 amount means the 50 per cent of payments that were brought forward from the year 2025-26 to be paid in the year 2024-25.\n\n2024-25 final entitlement means the base figure for the year 2024-25.\n\nsub (3) factor means the result of subsection (3).\n","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This legislation performs exactly the function intended by the parent Act — determining annual financial assistance factors. It has not expanded beyond its original purpose of setting the mathematical multipliers for local government grants."},"complexity_factors":["Mathematical formulas with multiple variables and fractions requiring cross-referencing to ABS population data and CPI figures","Nested modifications: base calculation → rounding adjustment → special circumstances adjustment","References to external data sources (ABS population estimates, Treasury CPI forecasts) with specific publication dates","Conditional logic in paragraph 8(1)(b) regarding decimal place rounding","Defined terms referencing the parent Act (Local Government (Financial Assistance) Act 1995) rather than being defined within the instrument","Complex \"special circumstances\" adjustments involving payment timing shifts across three financial years (2023-24, 2024-25, 2025-26)"],"plain_english_summary":"This instrument sets the formula multipliers used to calculate federal financial assistance to local councils: a final factor of 0.7945 for 2024–25 and an estimated factor of 0.7739 for 2025–26.  \n\nThose factors adjust payments to local governments (via states/territories), reflecting population and CPI changes and compensating for earlier-than-usual payment timing so the correct total funding is delivered over time."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"This determination does not change the statutory scope or eligibility under the Local Government (Financial Assistance) Act 1995. It only sets the numerical factors for 2024–25 and 2025–26 and explains how those factors are calculated and adjusted (including for advanced payments), thereby altering payment amounts and timing but not the underlying entitlement framework."},"complexity_factors":["Use of ratios combining population estimates and CPI indices (paragraphs 6(2) and 8(2)) requires precise external data inputs and arithmetic.","Dependence on Australian Bureau of Statistics population estimates published on specific dates (Notes in 6(2) and 8(2)) introduces data-timing sensitivity.","Use of a Treasury Budget CPI forecast for 2025‑26 (note in 8(2)) creates reliance on a projection rather than only observed series.","Rounding rule under paragraph 8(1)(b) applied in subsections 6(3) and 8(3) (increment of 0.0001 when fifth decimal > 4) affects final numeric outcomes.","Special‑circumstances adjustments under paragraph 8(1)(c) implemented in 6(4) and 8(4) use bespoke formulas to account for portions of payments brought forward, requiring mapping of 'base figure' and 'final entitlement' amounts.","Interaction with statutory concepts in the Local Government (Financial Assistance) Act 1995 (notably s 8(1) and s 7(3)(b)) means implementation depends on correctly identifying base figures and entitlement years.","Commencement mechanics (instrument commences the day after registration, clause 2) affect timing and may require retrospective application of calculated factors to payment schedules."],"plain_english_summary":"This instrument sets the numerical \"factor\" used to calculate Commonwealth financial assistance grants to local governments: a final factor of 0.7945 for 2024–25 and an estimated factor of 0.7739 for 2025–26. The factor plugs into the formula in the Local Government (Financial Assistance) Act 1995 and determines each council’s base entitlement.\n\nThe factors are derived from population and CPI ratios and include rounding and special adjustments to account for the Commonwealth’s decision to bring forward portions of payments between years, changing payment timing and Commonwealth outlays."},"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-2024-25-and-estimated-factor-for-2025-26-dete","history":"/api/acts/local-government-financial-assistance-final-factor-for-2024-25-and-estimated-factor-for-2025-26-dete/history","analysis":"/api/acts/local-government-financial-assistance-final-factor-for-2024-25-and-estimated-factor-for-2025-26-dete/analysis","conflicts":"/api/acts/local-government-financial-assistance-final-factor-for-2024-25-and-estimated-factor-for-2025-26-dete/conflicts","importantCases":"/api/acts/local-government-financial-assistance-final-factor-for-2024-25-and-estimated-factor-for-2025-26-dete/important-cases","documents":"/api/acts/local-government-financial-assistance-final-factor-for-2024-25-and-estimated-factor-for-2025-26-dete/documents"}}