Over the last few years, the Commonwealth has devoted considerable resources to the task of helping local government authorities maintain and upgrade their road systems. The major initiative was an extra $1.2 billion in road funding paid directly to councils through the Roads to Recovery programme but federal authorities have also been directed to work with their local government counterparts to improve road policies and practices. The Bureau of Transport and Regional Economics' main contribution to this initiative has been to carry out two research projects. A regional analysis of council road finances was published last year in BTRE Working Paper 44, Spending on Local Roads, and this report presents a complementary study of State and Territory spending on roads including the assistance they provide to local government. It also identifies the roads for which State and council authorities are respectively responsible in each jurisdiction. The BTRE would like to thank State, Territory and Local Government organisations that assisted in the preparation of this report by providing information or advice on road finances. The data presented in this report is based on the responses provided by the States and Territories to the BTRE's Survey of State Government Spending on Roads. The BTRE has made every effort to ensure the figures are internally consistent and has relied on the State and Territories to ensure the accuracy of the data.