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Funding for local councils in Victoria

The total funding for local councils in Victoria in 2003-04 from all sources was $4 billion. The following chart shows the sources of funding for the average council.

Graph of sources of council income


There are variations from this Victoria-wide average:
  • smaller rural councils typically receive higher proportions in grants, and have lower (often around 40%) reliance on rates
  • many inner Melbourne and outer fringe councils receive larger amounts in other revenues (such as car parking, and developer contributions)
  • developed metropolitan councils often have a higher reliance (up to 60%) on rates

Councils typically deliver services “on the ground” in about 100 different service areas. As well as implementing various commonwealth and state government programs, councils also have powers to provide a range of discretionary services in response to local community needs. They work in partnership with the local community, other tiers of government and with other agencies to deliver these services. Each municipality is distinct, providing “core” services in common with other councils and other services that respond to particular local circumstances.

The following chart from the Victorian Grants Commission shows how the average Victorian council spent their income in 2003/2004.
graph of council expenditure


The Council Plan and Annual Budget provide the detail that explains both a council’s expected income and its expenditure. These documents can usually be found on your council’s website.

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