Local Government Cost Index

LGANT uses the Local Government Cost Index (LGCI) model to assist councils with cost monitoring and resource allocation. The LGCI is a measure of the change in the cost of goods and services purchased by local governments over time, conceptually like the Consumer Price Index (CPI) in that it is a measure of the average change in cost over time. LGCIs are often used to adjust budgets and financial plans to account for inflation and changes in the cost of providing services to the community.

The model contains indices with which rate payers are familiar, however the council’s range of costing categories comprises of significantly different items and influences for which rate payers are less familiar with. These include:

• Employee costs
• Contractual Services
• Materials Expenses
• Depreciation
• Electricity
• Water & Sewerage
• Travel and Accommodation
• Fuel
• Printing, Stationary, Advertising
• Insurance
• Property Leasing
• Consultancy Expenses
• Telecommunications
• IT
• Food
• Miscellaneous

The LGCI estimated that the rate of local government cost increase in the Northern Territory for:

• 2021/22 is 5.47%
• 2022/23 is 3.76%
• 2023/24 is 3.85%
• 2024/25 is 3.9%*
  
  

*In 2025 the ABS made substantial changes to its Consumer Price Index (CPI) methodology, moving from a quarterly to a comprehensive monthly index. As at the time of data collection, this had not yet been applied to all datasets considered in the LGCI report. The 2024/25 increase estimate therefore involves two different methodological frameworks.

Please contact LGANT if you require further details.