The Financial Health Indicator (FHI) is a measurement of a local government’s overall financial health. It is calculated from the seven financial ratios that local governments are required to calculate annually. An FHI result of 70 and above indicates sound financial health. The maximum result achievable is 100. The FHI is one factor to consider in assessing overall performance. Other factors include: the range of services offered; efficiency of services delivered; and community satisfaction. A very high or low FHI may be a prompt for questions to be asked by the community about a local government’s revenue, expenses and service delivery. The FHI is best viewed as a trend over time. When interpreting FHI data on the radar charts below, a larger rounder shape is better than a smaller shape. Ratio results that are closer to the centre indicate areas where attention may be required and improvement can be made. Find out more information about the FHI methodology (DOCX 1.4MB).
DATA SOURCE: Calculation from financial ratios published in the local government’s Annual Financial Report
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A measure of the ability of a local government to meet its short-term financial obligations with funds it can access quickly (also known as ‘liquidity’).
A measure of the condition of a local government’s physical assets, by comparing their age with their replacement cost. The ratio highlights the aged condition of a local government’s stock of physical assets.
A measure of a local government’s ability to fund asset renewal and replacements in the future.
A measure of the extent to which assets managed by a local government are being replaced as they reach the end of their useful lives.
A measure of a local government’s ability to repay its debt based on how much cash it can access compared to the total of its debt obligations.
A measure of a local government’s ability to cover its operational costs and have money left for capital projects and other purposes.
A measure of a local government’s ability to cover its operating costs through revenue it generates itself.
This graph provides a comparison of Financial Health Indicator results.
DATA SOURCE: Calculation from financial ratios published in the local government’s Annual Financial Report
This is the average FHI result of all local governments in Western Australia.
This is the average FHI result of all local governments in the Perth metropolitan area.
This is the average FHI result of all local governments outside the metropolitan area.
This is the FHI result for the selected council.
A local government’s revenue comprises all sources of money that contribute to its operating budget. Local governments in Western Australia generate revenue from rates, fees and charges for services, and grants from the State and Commonwealth governments. In some cases, local governments also receive funding through property-developer contributions and sales of assets and property.
DATA SOURCE: Local government Annual Financial Report
Local governments are permitted to set aside money to be used for designated purposes in a future financial year. Reserve accounts may be created for future asset upgrades or replacements, employee costs, specific projects or a number of other initiatives.
DATA SOURCE: Local government Annual Financial Report
Under the Local Government Act 1995, councils must vote to accept an annual budget that sets out the local government’s spending priorities. A local government’s annual budget is informed by its Strategic Community Plan which is developed with the community. Engaging with the community enables a local government to be responsive to community needs and ensures that expenditure and prioritisation of public funds is in line with community expectations. The Local Government (Financial Management) Regulations 1996 specify 11 broad program areas that local governments are to use when reporting expenditure. These program areas are defined below.
DATA SOURCE: Western Australian Local Government Grants Commission
Activities that support local government’s decision-making processes. Includes elected member fees, allowances and administrative support, as well as costs incurred assisting elected members and ratepayers on matters which do not relate to specific council services.
Activities to collect revenue to allow for the provision of services. Includes costs incurred in collecting rates, government grants and other revenue.
Activities to provide services to help ensure a safer community. Includes fire prevention, animal control and other law, order and public safety initiatives.
Activities to provide services to achieve community and environmental health. Includes maternal and infant health, immunisation, pest control and support for general public health initiatives.
Activities to provide services to children, youth, seniors and disadvantaged persons. Includes pre-school and other education services, child minding facilities, playgroups, senior citizens’ centres, meals on wheels and home care services.
Activities to provide and maintain staff housing and support for housing programs.
Activities to provide services required by the community. Includes rubbish collection and disposal services, litter control, stormwater drainage, environmental protection, public conveniences, cemeteries and town planning schemes.
Activities to provide services and facilities that support the social wellbeing of the community. Includes public halls, civic centres, aquatic and recreation centres, sporting facilities, beaches, parks, gardens, playgrounds, libraries, museums and other cultural facilities.
Activities to provide transport services to the community. Includes construction and maintenance of local roads, footpaths, cycleways, parking facilities, aerodromes and water transport facilities, and lighting for roads.
Activities to help promote economic and business development. Includes tourism promotion and services, caravan parks and building controls.
Activities to monitor and control the local government’s assets. Includes private works operation, plant repair, operation costs and engineering costs.
Local governments are required to report their expenditure by nature and type. Expenditure is classified into five categories defined in the Western Australian Local Government Accounting Manual.
DATA SOURCE: Western Australian Local Government Grants Commission
The depreciation calculated on all classes of assets.
All costs associated with the employment of people including salaries and wages, allowances, benefits and training.
Materials and contracts are expenses related to materials purchased by a local government and contracts for services.
The combination of interest on expenditure, insurance expense, other expenses, and expenditure allocated to capital works.
Expenses related to gas, electricity and water use.
Rates are a tax on property levied by local governments to fund the shortfall between their planned expenditure and all other income they receive, including from local government grants. The Local Government Act 1995 and the Valuation of Land Act 1978 prescribe the methods for assessing the rateable value of property and the types of rates which can be levied. Each local government determines a rate in the dollar which is multiplied by the assigned value of the property. Rate revenue includes general rates, differential rates, specific area rates, minimum rates, interim rates, back rates, ex-gratia rates - less discounts offered. This does not include administration fees, interest on instalments, and interest on arrears or service charges. This graph shows the total growth in local government rate revenue for the local government selected. For more information about your rates contact your local government.
Note: Average rating data is not currently provided due to the dataset being incomplete. To provide this information now would not provide an accurate result.
Western Australian local governments provide a range of waste and recycling services to their residents. The collection of general household garbage is common to all local governments and many also provide a range of recycling services. Some of these waste and recycling services are provided directly to premises such as kerbside bin collections and vergeside collections for bulky items. Examples of other types of waste and recycling services provided by local governments include drop-off facilities for recycling and disposal, operation of landfills for disposal and providing public place bins. Waste and recycling services only provided directly to domestic premises (kerbside and vergeside services) are reported below. The total quantity of domestic waste collected by each local government is dependent on factors such as the number and type of premises and the socioeconomic characteristics of the local government area.
DATA SOURCE: Data are voluntarily reported by local governments to the annual Census of Western Australian Local Government Waste and Recycling Services. The accuracy of the reported data is not independently verified.
The Western Australian Waste Avoidance and Resource Recovery Strategy 2030 (waste strategy) includes targets for waste avoidance to reduce the amount of waste generated in Western Australia. Waste Strategy targets are set as a reduction in waste generation per capita from 2014/2015 of 5 and 10 per cent by 2025 and 2030 respectively. Reported below is the amount of waste generated per capita for kerbside bin collections and vergeside collections for bulky and garden waste. Reductions in waste avoidance depend on sustained behaviour change by all stakeholders. This is supported through education and incentives to increase awareness of waste avoidance and to support waste avoidance behaviours.
DATA SOURCE: Data are voluntarily reported by local governments to the annual Census of Western Australian Local Government Waste and Recycling Services. The accuracy of the reported data is not independently verified. Population numbers were obtained from Western Australia Tomorrow, Population Report No. 8, Persons, Band C.
Kerbside services are containerised, regular services where waste or recycling are collected from the kerb in front of the premises. Local governments may provide a range of waste and recycling kerbside services. Typical kerbside services can include a red topped bin for mixed waste (garbage) for disposal, a yellow topped bin for dry mixed recyclables and a lime green topped bin for garden organics or FOGO. Kerbside recovery rates in the table view show the percentage of materials recovered from the total amount of waste collected. Kerbside recovery rates depend on the degree to which waste is separated at the household (e.g. the number of bins), contamination in the recycling stream and the capacity and efficiency of the recycling facilities where recyclable materials are delivered.
DATA SOURCE: Data are voluntarily reported by local governments to the annual Census of Western Australian Local Government Waste and Recycling Services. The accuracy of the reported data is not independently verified. Household numbers were obtained from Western Australia Tomorrow, Population Report No. 8, Household forecasts, Band C.
Vergeside bulk waste collections are intermittent or on-demand collection services for bulky household items such as furniture, mattresses and whitegoods. They are typically non-containerised collection services but it is increasingly common for local governments to provide a bulk bin where the service is provided on-demand. The data also include specific product waste collections e.g. mattresses only. Recovery rates in the table view show the percentage of materials recovered from the total amount of waste collected.
DATA SOURCE: Data are voluntarily reported by local governments to the annual Census of Western Australian Local Government Waste and Recycling Services. The accuracy of the reported data is not independently verified. Household numbers were obtained from Western Australia Tomorrow, Population Report No. 8, Household forecasts, Band C.
Vergeside bulk garden organics collections are intermittent or on-demand collection services for garden organic wastes. Typically provided as a non-containerised service. Recovery rates in the table view show the percentage of materials recovered from the total amount of waste collected.
DATA SOURCE: Data are voluntarily reported by local governments to the annual Census of Western Australian Local Government Waste and Recycling Services. The accuracy of the reported data is not independently verified. Household numbers were obtained from Western Australia Tomorrow, Population Report No. 8, Household forecasts, Band C.