What is the difference between entitlement and cash grant?

Each year the total funding pool is updated for annual CPI and population growth. As this advice is provided in July, and is very close to the end of the June quarter, an estimate is made on the annual CPI. The following year, the difference between the estimated CPI and actual CPI is allocated to the state.

The grant is allocated each year on the estimated CPI and population growth pool. This is termed a council's grant entitlement.

In addition each year the adjustment relating to the prior year CPI is allocated to all councils on the prior year's distribution. It is these two amounts together that make up a council's cash grant.