Annual report 2010 - 2011, Northern Territory Grants Commission
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Northern Territory Grants Commissions
37 Annual Report N O R TH ER N TER R ITO R Y G R A N TS CO M M ISSIO N A. The national principles relating to the allocation of general purpose grants payable under section 6 of the Local Government (Financial Assistance) Act 1995 (the Act) among local governing bodies are as follows: 1. Horizontal equalisation General purpose grants will be allocated to all local governing bodies, as far as practicable, on a full horizontal equalisation basis as defined by the Act. This is a basis that ensures that each local governing body in the state/territory is able to function, by reasonable effort, at a standard not lower than the average standard of other local governing bodies in the state. It takes account of differences in the expenditure required by those local governing bodies in the performance of their functions and in the capacity of those local governing bodies to raise revenue. 2. Effort neutrality An effort or policy neutral approach will be used in assessing the expenditure requirement and revenue raising capacity of each local governing body. This means, as far as possible, policies of individual local governing bodies, in terms of expenditure and revenue effort, will not affect the grant determination. 3. Minimum grant The minimum general purpose grant allocation for a local governing body in a year will not be less than the amount which the local governing body would be eligible to receive if 30 per cent of the total amount of general purpose grants to which the state/territory is entitled, under section 9 of the Act in respect of the year, was allocated among local governing bodies in the state/territory on a per capita basis. 4. Other grant support Other relevant grant support provided to local governing bodies to meet any of the expenditure needs assessed should be taken into account using an inclusion approach. 5. Aboriginals and Torres Strait Islanders Financial assistance shall be allocated to councils in a way which recognises the needs of Aboriginals and Torres Strait Islanders within their boundaries. 6. Council amalgamation Where two or more local governing bodies are amalgamated into a single body, the general purpose grant provided to the new body for each of the four years following amalgamation should be the total of the amounts that would have been provided to the former bodies in each of those years, if they had remained separate entities. B. The national principle relating to the allocation of the amounts payable under Section 12 of the Act (the identified road component of the financial assistance grants) among local governing bodies is as follows: 1. Identified road component The identified road component of the Financial Assistance Grants should be allocated to local governing bodies as far as practicable on the basis of the relative needs of each local governing body for roads expenditure and to preserve its road assets. In assessing road needs, relevant considerations include length, type and usage of roads in each local governing area. APPENDIx A National principles for the allocation of general purpose and local road grants