3.1.1  Federal Funding Assistance - General Purpose Grants

3.1.1.1 Untied Federal funding for Local Government should continue.

3.1.1.2  The amount allocated by the Federal Government should be based on a fixed share of Commonwealth taxation.

3.1.1.3  The method of interstate distribution of general purpose grants should be changed from a per capita basis to a fiscal equalisation basis.

3.1.1.4  Principles for grant distribution in the State should be developed by the State Local Government Grants Commission in close consultation with the LGAQ.

3.1.1.5  The grants methodology should be transparent and easy to understand, based upon quality data, produce consistency and predictability in grant outcomes and ensure equitable treatment of Councils facing similar circumstances.

3.1.1.6  Where the methodology changes, a transition period of 4 years with a maximum reduction of 15 percent per year, should be established to allow Local Government to absorb and adapt to the change.

3.1.2  State Funding Assistance - Grants and Subsidies

3.1.2.1  The funding of the State Government's Local Governing Bodies Capital Works Subsidy Scheme should be maintained in real terms at no less than the 2005 State budget level, and the specific subsidy applicable to each category of works covered by the scheme should also be maintained at not less than the levels applicable in 2005 State budget.

3.1.2.2  In addition to the Local Governing Bodies Capital Works Subsidy Scheme, the State Government should maintain targeted funding schemes based on the strategic importance of infrastructure and the varying needs and capacity of Local Government across the State.

3.1.2.3  The State Government should provide a 100% subsidy to Councils for provision of external infrastructure to State Government sites and to non-State school sites.

3.1.2.4  Acquittal of expenditure related to State funded Assistance programs should be standardised across all government agencies and should consist of the current audit processes applied to Local Government.

3.1.2.5  Project funding to Local Government should be medium rather than short term, for example three years not one year, with prospects for continuation based on review, for example: Community, Arts, cultural development, economic development etc.

3.1.3  Funding of Infrastructure

3.1.3.1  Local Government should have the right to access funding from both public and private sources, including partnerships and joint venturing with other spheres of government and the private sector.  State and Commonwealth legislation and policy should not impede such arrangements.

3.1.3.2  Funding issues for transport infrastructure should be addressed by all spheres of Government during the development of Integrated Transport Plans.

3.1.3.3  Water supply, sewerage schemes and stormwater drainage should be regarded as the high priority area for State Government Grants and Subsidies.