In July 1998, the QCA was directed to examine and report annually on the implementation of competition policy reforms by local governments, and to recommend the levels of payment to local governments under the Local Government Financial Incentive Payments Scheme (LGFIPS). The QCA submitted its final report to the Government in June 2006 which included recommendations for the distribution of unexpended funds based on reforms that went beyond the requirements of the Scheme.
Final payments to councils under the Scheme were made in May 2007. Consistent with the QCA's recommendations, payments to councils totalling $150.2 million were made under the Scheme.
While the Scheme has expired, the states have recommitted to the application of the Competition Principles Agreement to local government, although detailed arrangements have not yet been finalised.
Given our past involvement in monitoring councils' compliance with competition reforms, we anticipate a continued role in respect of the new arrangements.