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Bibliography, Acronyms and Glossary


Australian Bureau of Statistics, 1999a, Australian Social Trends 1998, Population - Population Growth: Growth and distribution of Indigenous people, Cat No 4102.0, ABS, Canberra.

- 1999b, Year Book Australia, 1999, Cat No 1310.01, ABS, Canberra.
- 2001a, 1999-2000 Wage and Salary Earners: Australia, Cat No 6248.0, ABS, Canberra.
- 2001b, Australian Demographic Statistics, March Quarter 2001, Cat No 3101, ABS Canberra, September.
- 2001c, Census of Population and Housing: Socio-Economic Indexes for Areas, Cat No 2033.0.30.001, ABS, Canberra, June.
- 2001d, Estimated resident population of Australia, Cat No 3234.5, ABS, Canberra.
- 2001e, Environment Expenditure, Local Government, Australia 1999-2000 Cat No. 4611.0, ABS, Canberra, December.
- 2001f, Government Finance Statistics, Australia, Cat No 5512.0, ABS Canberra, June.
- 2001g, Population by Age and Sex, Australian States and Territories, Cat No 3201.0, ABS, Canberra.
- 2001h, Taxation Revenue 1999-2000, Australia, Cat No 5506.0, ABS, Canberra, June.

Australian Classification of Local Governments Steering Committee, 1994, Australian Classification of Local Governments, Australian Government Publishing Service, Canberra.

AEC Economics Group, Scoping study of current information regarding Federal road funding in Australia, Local Government Association of Queensland, August 2000.

AMQ International, Skilmar Systems Pty Ltd and Jeff Roorda and Associates 1998, Facing the Renewal Challenge, Victorian Local Government Infrastructure Study, Victorian Department of Infrastructure, Melbourne, December.

- 2001, A Wealth of Opportunities - A Report on the Potential from Infrastructure Management in South Australian Local Government, Local Government Infrastructure Management Group, Adelaide, April.

Australian Road Research Board Transport Research Ltd, 2000, Unsealed Roads Manual: Guidelines to Good Practice, Revised August 2000, Department of Defence and Department of Transport and Regional Services, Vermont South, Victoria.

Bureau of Transport Economics, 2001, Spending on Local Roads, Working Paper 44, Department of Transport and Regional Services, Canberra.

Commonwealth Grants Commission 2001a, Review of the operation of the Local Government (Financial Assistance) Act 1995, Commonwealth of Australia, Canberra.

- 2001b, Working papers for review of the operation of the Local Government (Financial Assistance) Act 1995, Commonwealth of Australia, Canberra.
- 2001c, Report on State Revenue Sharing Relativities, 2001 update, Commonwealth of Australia, Canberra.
- 2001d, Report on Indigenous Funding 2001, Commonwealth of Australia, Canberra.
- 2001e, Report on Indigenous Funding 2001, Consultants Reports, Commonwealth of Australia, Canberra.
- 2001f, Report on Indigenous Funding 2001, Supporting Material, Commonwealth of Australia, Canberra.

Department of Transport and Regional Services, 1998, National Report on Local Government 1997-97, Department of Transport and Regional Development, Canberra.

- 1999, National Report on Local Government 1998-99, Department of Transport and Regional Development, Canberra.
- 2000a, Commonwealth Assistance for Local Projects 2000-01 - A directory for local government and its communities, Commonwealth of Australia, Canberra.
- 2000b, Guide to Leading Practice in Local Government, National Awards for Innovation in Local Government 2000, Commonwealth of Australia, Canberra.
- 2000c, The Rural Book, Commonwealth of Australia, Canberra.
- 2001a, National Report on Local Government 1999-2000, Department of Transport and Regional Services, Canberra.
- 2001b, Guide to Leading Practice 2001, National Awards for Innovation in Local Government, Commonwealth of Australia, Canberra.

Droder, S.J.,2000, Windouran Shire Council Public Inquiry, New South Wales Department of Local Government, Sydney, January.

Dunn, A., 2001, National Framework for Women in Local Government, Australian Local Government Women's Association, Canberra, November.

Graham J., with assistance from Koob, P., 2000, Australian Emergency Manuals Series, Part II, Approaches to Emergency Management Plans: Manual 1 - Planning Safer Communities, Land Use Planning for Natural Hazards, Emergency Management Australia, Canberra, June.

Harvey, M., 2000, Rural Roads: The Economic Perspective, Bureau of Transport Economics, Canberra, March.

House of Representatives Standing Committee on Primary Industries and Regional Services, Inquiry into Infrastructure and Regional Development, Time running out: Shaping Regional Australia's Future, Human Rights and Equal Opportunity Commission, Canberra, 13 March 2000.

Industry Commission, 1997, Performance Measures for Councils, Improving local government performance indicators, Research Report, Australian Government Publishing Service, Melbourne, October.

Information Australia, 2001, Australian Local Government Guide, 30th edition, March-July 2001, Information Australia, Melbourne.

Infrastructure Alliance, 2001, 2001 Australian Infrastructure Report Card, the Institution of Engineers, Australia, Canberra.

Institute of Public Works Engineering Australia and the National Asset Management Steering Group NZ, 2000, International Infrastructure Management Manual Australia/NZ Edition, New Zealand National Asset Management Steering Group, New Zealand, April.

Macklin, J. (ed.) 1994a, Financing Local Government: a Review of the Local Government (Financial Assistance) Act 1986, Australian Urban and Regional Development Review Discussion Paper No 1.

- 1994b, Local Government Funding Methodologies, Australian Urban and Regional Development Review Discussion Paper No 2.

2nd National Rural Roads Congress, 2001, Rural Road Funding Report, Mildura, Victoria.

National Economics for the Australian Local Government Association, 2000, State of the Regions Report 2000, Australian Local Government Association, Canberra, December.

O'Toole, K., 2000, Where does the buck stop? Australian-Japanese Sister City Relations, School of Australian and International Studies, Deakin University, unpublished paper to Sister Cities Conference, Adelaide.

Pocock, B., Sexton, M., and Wilson, L., 2001a, Guidelines for managing workplace change in local government, Centre for Labour Research, Adelaide University, Adelaide, June.

- 2001b, Doing more, with less, Adelaide University, Adelaide, June.
- 2001c, Tension and change at work in South Australian Local Government, Newsletter, Australian Services Union and Australian Workers Union, Adelaide, June 2001

PricewaterhouseCoopers, 2000, Local Government Grant Distribution: An International Comparative Study, Department of Environment, Transport and the Regions, United Kingdom.

Remote Rural Resources Pty Ltd for the Local Government Ministers' Conference, 1998, Local Government Services to Aboriginal and Torres Strait Islander Communities: Its Capacity to Achieve the National Commitment to Improve Outcomes for Aboriginal and Torres Strait Islander Peoples, Commonwealth of Australia, Canberra, June.

Sproats, K., 1996, Comparisons of Agendas and Processes in Australian Local Government, paper presented to the Local Government in Queensland Centenary Conference, August.

- 2001, Inquiry into local government structure in inner and eastern Sydney, New South Wales Department of Local Government, Sydney, April.

Tasmanian Auditor General, 1998, Special Report No.26, Capitalisation and Reporting of Road Assets in Tasmania, Tasmanian Government, Hobart, May.

Victorian Councillor Allowances Review Panel, 2000, Review of the Remuneration of Mayors and Councillors, Department of Infrastructure, Melbourne, June.

Victoria Grants Commission, 2000, Review of the allocation of General Purpose Grants to Victorian Councils - Issues and Options, Victoria Grants Commission, Melbourne, October.

- 2001, Review of the allocation of General Purpose Grants to Victorian Councils - Final Report, Victoria Grants Commission, Melbourne, May.

Victorian Government, 2000a, Policy Statement: Flexibility and Accountability: The Victorian Government's New Approach to Councillor and Mayoral Allowances, Melbourne, September.

- 2000b, Facing the Renewal Challenge, Melbourne, January.

Western Australian Municipal Association, 2000, Report on the Local Government Road Assets and Expenditure 1998-99, Western Australian Municipal Association Transport and Roads Unit, December.

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AAV assessed annual value RAS Rural Agricultural Small
ACLG Australian Classification of Local Government RAV Rural Agricultural Very Large
ALGA Australian Local Government Association RC Regional City
ARIA Accessibility/Remoteness Index for Australia RSG Rural Significant Growth
ATSIC Aboriginal and Torres Strait Islander Commission RTL Rural Remote Large
B Borough RTX Rural Remote Extra Small
Bd Board RTS Rural Remote Small
C City RTM Rural Remote Medium
CGC Community Government Council S Shire
CRI cost relativity index SEIFA Socio Economic Index For Australia
DC District council SG Significant Growth
GDP gross domestic product T Town
GFS Government Finance Statistic UCC Urban Capital City
GIS Geographical Information System UDS Urban Developed Small
GST Goods and services tax UDM Urban Developed Medium
IRDB Integrated Regional Data Base UDL Urban Developed Large
KPI key performance indicator UDV Urban Developed Very Large
LA21 Local Agenda 21 UFS Urban Fringe Small
LGA Local Government Association UFM Urban Fringe Medium
LGASA Local Government Association of South Australia UFL Urban Fringe Large
LGMC Local Government Ministers' Conference UFV Urban Fringe Very Large
LGPro Local Government Professionals Inc. URS Urban Regional Small
M Municipal URM Urban Regional Medium
OECD Organization for Economic Cooperation and Development URL Urban Regional Large
RAL Rural Agricultural Large URV Urban Regional Very Large
RAM Rural Agricultural Medium VoIP Voice over Internet Protocol

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Minor cost driver in calculating Health and Welfare disability factor for allocating grants in Victoria. It is based on relative number of persons of Aboriginal and Torres Strait Islander descent in each municipality.

accrual accounting
The accrual approach to budgeting acknowledges all financial implications of an entity's planned operations, including revenues and expenses when goods or services are planned to be provided or consumed. It also acknowledges the planned presence of all assets and liabilities.

the Act
For the purposes of this National Report, the Act refers to the Local Government (Financial Assistance) Act 1995.

balanced budget approach
A method of general purpose grant assessment whereby gross expenditure needs and revenue capacity for each council are assessed with the difference between the expenditure and revenue assessments being the equalisation need.

The practice of measuring an organisation's performance and practices in key areas and comparing them with other organisations, to find ways of achieving better results.

best practice
The achievement of best practice refers to the way in which leading-edge organisations are able to manage and organise their operations to deliver world-class standards of performance in areas such as cost, quality and timeliness.

Centrelink provides, at its service centres, a range of customer services for the following Federal Government Departments:

  • Family and Community Services;
  • Employment and Workplace Relations;
  • Transport and Regional Services;
  • Veterans' Affairs;
  • Health and Ageing;
  • Education, Science and Training;
  • Agriculture, Fisheries and Forestry - Australia;
  • Foreign Affairs and Trade;
  • Industry, Tourism and Resources;
  • Communication, Information Technology and the Arts; and
  • Immigration and Multicultural and Indigenous Affairs.

capital grant expenses
Unrequited payments by government to finance the acquisition of non-financial capital assets by the recipient, or compensate the recipient for damage or destruction of a capital assets, or increase the financial capital of the recipient.

capital revenue
Component of other revenue gained from capital grants such as for water supply and sewerage.

Capping, for the purposes of this report, is the stabilising of component factors to bring a council's grant to within a set range of that council's grant in a previous year.

Commonwealth Regional Information Service (formerly CountryLink)
Commonwealth Regional Information Service (CRIS) is the Federal Government information access service for country people. CRIS offers five major services, a freecall answer line on 1800 026 222, a travelling shopfront, local community information stands, a video lending library and the Rural Book which is a guide to Federal Government services and programmes.

Commonwealth Grants Commission
A statutory authority established by the Commonwealth Grants Commission Act 1973 whose main task is to recommend to the Commonwealth Government, for consideration by the Ministerial Council for Commonwealth- State Financial Relations, the shares for each State and Territory of the pool of general revenue and funding grants made available by the Commonwealth.

Competition Principles Agreement (CPA)
The agreement between the Commonwealth and State and Territory Governments that establishes agreed principles on structural reform of public monopolies, competitive neutrality between public and private sectors, prices oversight of utilities and other corporations with significant monopoly power, a regime to provide access to essential facilities and a programme of review of legislation restricting competition. It is one of three intergovernmental agreements (the other two are Conduct Code Agreement and Agreement to Implement the National Competition Policy and Related Reforms) negotiated under the Council of Australian Governments' forum of April 1995.

competitive neutrality
Competitive neutrality seeks to ensure that competition between public and private businesses happens on a fair basis by making sure they face the same taxes, incentives and regulations.

competitive tendering
The process of selecting a preferred supplier from a range of potential suppliers by seeking offers/tenders and evaluating these on the basis of one or more selection criteria.

compulsory competitive tendering (CCT)
The mandating of competitive tendering for specified services or to a specified minimum level of expenditure, usually imposed through legislation.

contracting out
An arrangement whereby a contracting agency enters into a contract with a supplier from outside that agency for provision of goods and/or services. Also called 'outsourcing'.

cost relativity index
Determined for each expenditure function for each council. Indices are centred around 1.0, and are used to inflate or deflate the component grant for each council.

council measure
An individual council's measure for the disability being assessed (for example, population growth).

direct assessment approach
A method of grant assessment whereby a positive or negative assessment of expenditure need or revenue capacity is made for each council relative to a standard assessment. The sum of positive and negative assessments is the equalisation need.

Any influence beyond a council's control which would lead it to spend more (or less) per capita than the State average, to provide the average level of service.

disability factor
A measure of the underlying influence on a council's expenditure that produces a disability, expressed as an adjusting ratio of the state average.

disallowable instrument
An instrument which is required to be tabled in both houses of Parliament within 15 sitting days of being made, and which can be disallowed by either House of Parliament. If an instrument is disallowed, it has the same effect as if it were repealed.

effort neutral or neutrality
The assessment of a financial assistance grant is effort neutral when it neither rewards nor penalises a council where expenditure or revenue-raising patterns vary from the state average because of policy differences, differences in efficiency or levels of self help.

effort positive
Assessment of an expenditure need is effort positive when the actual expenditure a council incurs is used as the assessed expenditure need. That is, the assessment allowance recognises the effort being made.

economic infrastructure
Economic infrastructure includes physical facilities such as roads, rail, ports, airports, reservoirs, reticulated water, sewerage, levees, drainage and irrigation facilities, telecommunications, power generation and electricity and gas distribution.

Allocation of the cost of assets over their useful life. Usually relates to non-current tangible assets which are written off because they wear out or become obsolete.

escalation factor
The ratio by which the level of financial assistance grant nationally is adjusted, and which the Treasurer determines according to the requirements of the Act.

exclusion method
Excluding, from the calculation of a council's financial assistance grant, all assessed expenditure and grants linked to Commonwealth and State specific purpose funding.

estimated factor
This is the escalation factor, as determined by the Treasurer at the start of the financial year, to determine the levels of grant payments, according to the requirements of the Act which will be paid to local government for that year.

final factor
This is the escalation factor, as determined by the Treasurer at the end of the financial year, according to the requirements of the Act. It will determine the final entitlement payable for local government financial assistance for that year. Determination of the final factor will (usually) require adjustments to be made to the actual payments, which were based on the estimated factor at the beginning of the year.

financial incentive package (Queensland)
The financial incentive package is divided into three pools, and the distribution of funds across the pools shows the emphasis, in the package, on rewarding outcomes under National Competition Policy.

The practice of mining companies, and other major employers staffing operations in remote locations, of supporting access by air thus allowing staff to reside in less remote communities rather than at the operation site.

financial assistance grants
These are 'untied' funds (ie not tied to a specific purpose) the Commonwealth grants to local governments through State governments.

Financial assistance grants to local government are supplied to States as 'tied' (for a specific purpose) but once distributed to local government are 'untied'. They comprise two components: general purpose and local roads.

full horizontal equalisation
Distribution of general purpose grants to local government, with the objective of ensuring each council is able to function, by reasonable effort, at a standard not lower than the average standard in the state takes into account differences in expenditure required in performing its functions and in the capacity to raise revenue (s.6.3(a) and (b) Local Government (Financial Assistance) Act 1995).

general purpose grant
This is one of two components (the local roads grant being the other) of the financial assistance grants to local government. The objective is to strengthen local government by addressing the vertical fiscal imbalance caused by local government's narrow tax base. General purpose grants promote equity between councils and certainty of funding. They are distributed between States on a per capita basis and within States on a horizontal equalisation basis in accordance with the National Principles.

GFS net worth
GFS net worth reflects the contribution of governments to the wealth of Australia, being a summary of the value of assets, shares and other contributed capital less liabilities.

GrantsLINK is a website that provides access to information on Federal Government funding programmes through a single site.

human capital infrastructure
Includes intangible assets, such as the educational, skill and health characteristics of populations, that contribute to the productive potential of the community.

inclusion method
The inclusion, in calculating a council's general purpose grant, of all assessed expenditure and grants, including that related to Commonwealth and State specific-purpose funding.

isolation allowance
Isolation allowance is calculated using a regression analysis model based on the additional costs of isolation and distance from capital cities. An additional component to the isolation allowance is included which specifically recognises the additional industrial relations obligations of councils in western New South Wales.

Local Government Development Programme (LGDP)
This is a Commonwealth programme, administered by the National Office of Local Government, to help develop local government. The programme ceased in July 1999.

Local Government Incentive Programme (LGIP)
This two-year Federal Government programme commenced in 1999-2000. It provided a total of $7 million over two years to local government to assist with activities that led to the adoption of best practice, promoted an enhanced role for local government in leading their communities and increased the capacity of local government to contribute to regional development.

Local Government Grants Commissions (LGGC)
In each State and the Northern Territory, local government grants commissions have been established under State and Territory legislation. Their primary role is to make recommendations to the State or Territory minister on distributing available financial assistance grants to councils in that State or Territory.

Local Government On-Line Programme
The Federal Government committed $45 million out of the proceeds of the sale of the second tranche of Telstra towards Local Government On-Line. This funding is part of the Networking the Nation programme and focuses on ensuring local government authorities in regional Australia have an opportunity to use advanced telecommunication technologies and networks to provide state-of-the-art services to their communities.

local road component
In New South Wales the local road component is based on a formula developed by the State Roads and Traffic Authority. The formula uses councils' proportion of the State's population, local road length and bridge length.

local roads grant
This is one of two components (the other being the general purpose grant) of the financial assistance grant to local government. It was formerly provided as a tied grant and became 'untied' from 1 July 1991. It continues to be identified and distributed according to the former tied grant arrangements. It is distributed between States on the basis of historical shares and within States on the basis of road expenditure needs.

microeconomic reform
Actions taken to modify the behaviour of firms and government entities to make them more productive and to promote more efficient allocation of resources.

minimum grant entitlement
Every council is entitled to receive a minimum grant which is not less than the amount it would receive if 30 per cent of the available general purpose grant for that State were distributed on a per capita basis.

national competition policy (NCP)
A series of reforms to encourage competition and discourage anti-competitive behaviour, set out in three intergovernmental agreements (the Competition Principles Agreement, the Conduct Code Agreement and Agreement to Implement the Competition Policy and Related Reforms), which emanated from the Report of the Independent National Competition Policy Review Committee (the Hilmer Report).

negative allowances
Allowances which equalise the financial capacity of 'advantaged' councils to that of the average level for that State, by accordingly reducing the level of the financial assistance grant. Councils assessed as being 'advantaged' may, for example, enjoy high values per property.

non-feasance rule
A rule under which a highway authority may owe to an individual road user a duty of care, breach of which will give rise to liability in damages, when it exercises its powers, but it cannot be made so liable in respect of a mere failure to act.

operational subsidy
Grant provided to councils that do not have access to significant other revenue such as that from rates.

pensioner rebate allowance
Generally, pensioners receive a rebate on their general rates collected by councils. A pensioner rebate allowance is calculated to recognise that a council's share of pensioner rebates is an additional cost. Councils with high proportions of eligible pensioner rebates are, therefore, more disadvantaged than those with a lower proportion.

per capita minimum councils
Per capita minimum councils are those that receive only the minimum grant entitlement in their general purpose grant.

performance indicators
Quantitative and qualitative statistical information used to assess how successfully objectives are being achieved.

positive allowances
Allowances which equalise the financial capacity of 'disadvantaged' councils to that of the average level for that State, by accordingly increasing the level of the financial assistance grant. Councils assessed as being disadvantaged may, for example, suffer low values per property.

public benefit assessment (PBA)
Establishes the benefit of applying one of three identified competitive neutrality reforms: corporatisation, commercialisation or full cost pricing.

public interest test
An assessment of the extent of the restriction on competition, the number of stakeholders, the size of the impact, the complexity of the issues and the level of community concern.

public trading enterprise (PTE)
Public trading enterprises are resident public enterprises, such as Telstra or Australia Post, mainly engaged in producing goods and services for sale in the marketplace at prices which aim to recover most of the costs involved.

rate capacity
A measure of a council's capacity to raise revenue from rateable property, having regard to activities on that property, such as agriculture or mining.

rate pegging
Action by State governments to limit any variation in rates levied by councils, usually by ceiling or allowable limit on the percentage increase from year to year.

Regional Flood Mitigation programme
The Federal Government provided $20 million over three years for integrated flood mitigation projects, such as construction of levees and repair or upgrading of existing infrastructure. The Federal Government funding is to be matched by State governments with a contribution from local government.

Regional Solutions programme
Regional Solutions is an $86 million four-year Federal Government programme that aims to help regional rural and remote communities build their capacity and identify and implement development opportunities.

An information network, designed for Voluntary Regional Organisations of Councils throughout Australia. RegionLink is managed by the Australian Local Government Association and its Internet address is www.alga.asn.au/links/regionalOrgs.php.

revenue allowances
Revenue allowances compensate councils for their relative lack of revenue-raising capacity. Property values are the basis for assessing revenue-raising capacity because rates, based on property values, are the principal source of councils' income. Property values, to some extent, are an indicator of the relative economic wealth of local areas.

Roads to Recovery programme
The Roads to Recovery programme is a $1.2 billion four-year Federal Government programme. It aims to provide councils with the financial capacity to repair roads that are approaching the end of their life. The grants are paid directly to councils.

Road management system used in Western Australia based on three asset-related values of: replacement value, written down value (current value after allowing for depreciation) and status quo costs (the estimated cost of maintaining a road in current condition).

social infrastructure
Social infrastructure includes housing, educational, recreational and law and order facilities that support the community's need for social interaction

specific purpose grant
Payments made by Commonwealth or State or Territory governments to a council for a specific purpose. Such grants usually require a council to meet certain conditional arrangements.

standard measure
The State standard (generally the average) measure for the disability being assessed.

standardised revenue and expenditure
The assessed (as distinct from actual) revenue and expenditure for each council, determined by its local government grants commission as required for horizontal equalisation purposes, which takes into account each council's expenditure needs, revenue-raising capacity and disabilities.

structural reform
A change to the external relationships between councils including boundary changes and amalgamation of councils, cooperative service provision, major resource sharing initiatives and joint service delivery.

Transitional Modification of National Principles
Under Section 26 of the Local Government (Financial Assistance) Act 1995, the Minister may determine that one or more of the National Principles are subject to modification for a particular year in relation to a particular State.

Weightings reflect the significance of the measure in terms of the expected additional cost. The weightings have generally been determined by establishing a factor for the maximum disability based on a sample of councils or through discussion with appropriate organisations.

zone allowance rebates
Tax allowances available to residents of remote areas determined by a distance specified by the Australian Taxation Office from population centres (currently 250 kilometres from a centre of 2,500 people).

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