GLADSTONE Regional Council will this year benefit from a $7-million boost to subsidise council operations.
The long-standing form of assistance, this year amounting to $7,690,523, will work to help council improve efficiency both on the ground and in fund allocation.
Mayor Gail Sellers said without the grant, Gladstone would suffer.
"Essentially, without the grant money that is provided, council would need to look at either reducing the services provided or increase its general rate," she said.
"The Financial Assistance Grant is the distribution of the budgeted Federal Government assistance to local government operations, that is distributed by the respective states.
"In Queensland, it is distributed via recommendations based on the Queensland Local Government Grant Commission."
The allocation reserved for Gladstone comprises 1.7% of the statewide funding and will be paid in quarterly instalments.
Annually, the amount distributed to regional councils across Australia is determined by changes in population and the Consumer Price Index.
Both components of the grant are untied, allowing councils to spend the grants according to local priorities.