This is the major scheme operated by the Library Board and commenced in 1945. Written offers are normally circulated to local governments within four weeks of the budget announcement, normally in July. Payments are made quarterly. This scheme provides cash grants to local governments, operating Independent public libraries.
Funding is provided for local government, for regional boards or for joint local governments bodies.
The grant is provided for the purchase of library materials in line with the broad definition of material prescribed by section 64 of the Libraries and Archives Act. Ninety-five percent of the grant must be spent on the purchase of library materials. The ATO has advised the grant is considered as an appropriation and as such GST does not apply. Grants are calculated using a simple weighted per capita formula where smaller local governments receive a proportionately higher weighting than larger Councils. Those local governments with populations below 20,000 operating Independent library services receive the maximum weighting of 30 points, on a base of 100 points, with one weighting point subtracted for every 10,000 people above the base population of 20,000.