Thursday, 14 November 2019

 Mr SOMYUREK (South Eastern Metropolitan—Minister for Local Government, Minister for Small Business) (12:18): I am pleased to update the house on the Victoria Grants Commission’s annual report. The report, which has been tabled, provides a comprehensive summary of the methodology used by the commission in allocating $616 million in federal financial assistance grants to Victorian councils. The 2019–20 financial assistance grants comprise $456 million in general purpose grants and $161 million in local roads grants.

The joint parliamentary inquiry into the sustainability and operational challenges of Victoria’s rural and regional councils recommended that the proportion of financial assistance grants distributed to councils based on their population be reduced so that a larger proportion can be distributed based on council needs. The commission has done this by refining its allocation methodology for 2019–20 to give greater recognition to the needs of councils with dispersed, part-time and low populations. Rural and regional councils benefiting from major funding increases for 2019–20 include Buloke shire, which received a 5.5 per cent increase from last year; Hindmarsh shire, which received a 7.2 per cent increase from last year; and West Wimmera shire, which received a 10.1 per cent increase from last year. This change ensures that financial assistance funding is directed to small rural councils.