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Thursday, 9 December 1976


Mr Abel asked the Minister representing the Minister Assisting the Prime Minister in Federal Affairs, upon notice:

(1)   Under the new Federalism arrangements, if the increased allocations to local government were received in pro rata amounts by individual councils, what increased allocations should the Municipalities of Ashfield, Canterbury, Drummoyne and Marrickville expect to receive in 1976-77.

(2)   What income other than from rates will each of those Councils receive in 1976-77.

(3)   For what major purposes will those funds be allocated to each of those Councils.

(4)   What income from (a) rates and (b) sources not mentioned in part (2 ) do each of those Councils expect to receive in 1976-77.

(5)   For each of the categories in parts (1), (2), (3) and (4), what estimated percentage increases are the 1976-77 estimates over 1975-76 figures.


Mr Viner -The Minister Assisting the Prime Minister in Federal Affairs has provided the following information in answer to the honourable member's question:

(1)   to (5) The following table lists, for each of the four Municipalities concerned.

(   1 ) the level of Commonwealth Assistance for 1975-76 as recommended by the Commonwealth Grants Commission

(2)   the amount that would be received if the 75 per cent increase in total Commonwealth Assistance to local government for 1 976-77 had been distributed on a pra rata basis

(   3 ) the actual 1 976-77 tax sharing allocation and

(4)   the percentage increase of actual 1976-77 allocation over the 1975-76 allocation

Apart from rates, which are the major revenue source, the income of local government authorities in New South Wales, excluding borrowing, is derived from charges for public works and services, miscellaneous sources such as interest, rent, licences etc., and from Commonwealth and State Government grants.

The Commonwealth does not have detailed information on these revenue sources other than the allocation of local government's entitlements under the new tax sharing arrangements. This entitlement amounted to $5 1.3m for local government in New South Wales for 1976-77.

The New South Wales Government distributed one-third ofthe entitlement, amounting to some $ 17.1m, to all Councils on the basis that 87V4 per cent of the amount was distributed on a per capita basis and the balance as an additional grant to Councils with a population density of less than 25 persons per square kilometre. The remaining twothirds of the entitlement, amounting to some $34.2m, was distributed to Councils on the recommendations of the New South Wales Local Government Grants Commission.

The major purposes to which funds are applied by local government in New South Wales, excluding loan expenditures, are public works and services, general administration and debt servicing and grants to other instrumentalities and bodies. The Commonwealth does not have details of these outlays.







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