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With respect to interstate HFE between the three broad strata, our analysis provides a clear indication of the likely skewing of transfers towards urban centres in two of the LGGC methodologies.
A positive variance indicated that the figure re-estimated using the comparative LGGC model was greater than the Victorian allocation.
The same comments essentially apply to the rural strata which--on average--allocate fewer funds under NSW LGGC model, but with lower levels of variance (the average variance is not particularly high but for some small councils, such as Central Darling, $200,000 annually is doubtless significant).
The relatively lower variance in the N SW LGGC model when compared to section v is mainly due to the lower weighting assigned to population under the NSW model (effectively 10.
Section v and Section vi have compared NSW LGGC and QLGGC individually with the VLGGC allocations.
In essence, the graphs illustrate that the QLGGC provides far higher levels of road funding for urban councils than the NSW LGGC, and the NSW model provides slightly higher levels than the Victorian algorithm.
The analysis of extant LGGC algorithms also indicated skewing towards centres with high populations and small road infrastructure burdens in violation of Proposition 2.