STATES GRANTS (INCOME TAX REIMBURSEMENT).
No. 20 of 1942.
An Act to make
provision for the grant of financial assistance to States, and for other
purposes.
[Assented to 7th
June, 1942.]
BE
it enacted by the King’s Most Excellent Majesty, the Senate, and the House of
Representatives of the Commonwealth of Australia, as follows:—
Short
title.
1. This Act may he cited as the States Grants (Income Tax
Reimbursement) Act 1942.
Commencement.
2.This Act shall come into operation on the first day of
July, One thousand nine hundred and forty-two.
Definition.
3.In this Act, the expression “arrears of tax” means any
amount payable by any person in respect of any tax imposed upon incomes by or
under the law of the State concerned for any financial year prior to the
financial year commencing on the first day of July, One thousand nine hundred
and forty-two, which has not been collected by the State prior to that date.
Grants
to States.
4.In every financial year during which this Act is in
operation in respect of which the Treasurer is satisfied that a State has not
imposed a tax upon incomes, there shall be payable by way of financial
assistance to that State the amount set forth in the Schedule to this Act
against the name of that State, less an amount equal to any arrears of tax
collected by or on behalf of that State during that financial year.
Further
financial assistance.
5.—(1.) As further financial assistance to any State
to which payments may be made under section four of this Act, there shall be
payable to any State which collects, or on behalf of which there are collected,
any arrears of tax during any financial year during which this Act is in
operation, an amount equal to the amount of the arrears of tax so collected.
(2.) The amount payable in accordance with this
section shall be payable immediately prior to the expiration of this Act and
shall bear interest as from the beginning of the financial year next following
the financial year in which the arrears of Tax are collected at such rate (not
less than three pounds per centum per annum) as the Treasurer determines.
Additional
grants to states.
6.—(1.) If the Treasurer of any State to which
payments may be made under section four of this Act is of the opinion that the
payments so made are insufficient to meet the revenue requirements of the Slate
he may, by writing, so inform the Commonwealth Grants Commission constituted
under the Commonwealth Grants Commission,
Act 1933–1935.
(2.) Upon receipt of any such information the
Commonwealth Grants Commission shall inquire into and report, to the Treasurer
of the Commonwealth as to whether it is just that an additional amount of
financial assistance should be payable, to that State, for which purpose the
Commission shall have all the powers it would have if the information were an
application made by a State under the Commonwealth
Grants Commission Act 1933–1935.
(3.) Where the Treasurer, after considering the
report, is satisfied that it is just that a greater amount of financial
assistance should be payable to that State than the amount payable in
accordance with section four of this Act, there shall be payable to that State
such further amount of financial assistance (not exceeding the amount
recommended by the Commonwealth Grants Commission) as the Treasurer thinks
just.
Appropriation.
7.