Commonwealth Aid Roads Act 1959

Legislation au C1959A00039 Not in force Act

Legislation content

COMMONWEALTH AID ROADS.

 

No. 39 of 1959.

An Act to grant Financial Assistance to the States in relation to Roads and to Works connected with Transport.

[Assented to 22nd May, 1959.]

BE it enacted by the Queens Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows:—

Short title.

1. This Act may be cited as the Commonwealth Aid Roads Act 1959.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.


Definitions.

3. In this Act, unless the contrary intention appears—

rural roads means roads in rural areas (including developmental roads, feeder roads, roads in sparsely populated areas and in soldier settlement areas and roads in country municipalities and shires), other than highways, trunk roads and main roads;

year means a period commencing on the first day of July and ending on the following thirtieth day of June.

Basic grant.

4.(1.) There is payable to the States in respect of each year specified in the table set out in this sub-section, for the purpose of financial assistance, the amount specified opposite to that year in that table:—

 

£

Year commencing 1st July, 1959.........................

40,000,000

Year commencing 1st July, 1960.........................

42,000,000

Year commencing 1st July, 1961.........................

44,000,000

Year commencing 1st July, 1962.........................

46,000,000

Year commencing 1st July, 1963.........................

48,000,000

 

220,000,000

(2.) An amount payable to the States under the last preceding sub-section shall be divided amongst the States in accordance with the next succeeding section.

(3.) Where the sum of—

(a) the amount payable to a State under the Commonwealth Aid Roads Act 19541956 in respect of the year that commenced on the first day of July, One thousand nine hundred and fifty-eight; and

(b) the amount payable to that State under the Commonwealth Aid Roads (Special Assistance) Act 1957 in respect of the year referred to in the last preceding paragraph,

exceeds the amount payable to that State under the preceding provisions of this section in respect of the year commencing on the first day of July, One thousand nine hundred and fifty-nine, there is payable to that State, in respect of the latter year, for the purpose of financial assistance and in addition to the financial assistance granted by any other provision of this Act, an amount equal to the amount of that excess.

Distribution of basic grant amongst the States.

5.(1.) An amount payable to the States under the last preceding section shall be divided amongst the States as follows:—

(a) one-twentieth of the amount shall be paid to the State of Tasmania;


(b) of the remainder of the amount—

(i) one-third shall be divided amongst the other States according to their respective populations as published by the Commonwealth Statistician from the returns of the census last taken before the commencement of that year;

(ii) one-third shall be divided amongst those States according to their respective areas; and

(iii) one-third shall be divided amongst those States according to the number of motor vehicles shown by statistics published by the Commonwealth Statistician to have been respectively registered in those States as at the thirty-first day of December last preceding the commencement of that year.

(2.) In the last preceding sub-section, motor vehicles means motor cars and commercial motor vehicles (including utilities, panel vans, lorries, omnibuses and station wagons) and motor cycles, but does not include trailers, road tractors and similar vehicles or vehicles used by any part of the Defence Force.

Additional grant based on State allocations for road purposes.

6.(1.) Where—

(a) a State furnishes to the Treasurer—

(i) as soon as practicable after the end of the year that commenced on the first day of July, One thousand nine hundred and fifty-eight, such information as the Treasurer requires with respect to amounts allocated by the State in that year from its own resources for expenditure on roads; and

(ii) as soon as practicable after the end of any subsequent year up to and including the year commencing on the first day of July, One thousand nine hundred and sixty-three, such information as the Treasurer requires with respect to amounts so allocated by the State in that year; and

(b) the Treasurer is satisfied that the sum of the amounts so allocated by the State in the subsequent year exceeds the sum of the amounts so allocated by the State in the year referred to in sub-paragraph (i) of the last preceding paragraph,


there is payable to the State in respect of the subsequent year, for the purpose of financial assistance and in addition to the financial assistance granted by any other provision of this Act, the amount of that excess or the quota of the State for that year, whichever is the less.

(2.) For the purpose of the last preceding sub-section, the quota of a State for a year is an amount determined by apportioning the amount specified opposite to that year in the table set out in this sub-section amongst the States in the same proportions as an amount payable to the States under section four of this Act in respect of that year is divisible amongst the States:—

 

£

Year commencing 1st July, 1959............................

2,000,000

Year commencing 1st July, 1960............................

4,000,000

Year commencing 1st July, 1961............................

6,000,000

Year commencing 1st July, 1962............................

8,000,000

Year commencing 1st July, 1963............................

10,000,000

 

30,000,000

(3.) Information furnished by a State under sub-section (1.) of this section shall not be accepted for the purposes of that sub-section unless it is certified to be correct by the Auditor-General of the State.

Purposes for which grants are to be expended.

7.(1.) Subject to the next two succeeding sub-sections, moneys paid to a State under this Act shall be expended—

(a) on the construction, reconstruction, maintenance and repair of roads or on the purchase of road-making plant;

(b) in making payments to municipal or other local authorities for the construction, reconstruction, maintenance and repair of roads or for the purchase of road-making plant; or

(c) in making payments for or in connexion with research relating to the construction, maintenance or repair of roads.

(2.) Each State shall, out of the moneys paid to it under this Act in a year, expend in that year an amount, not being less than two-fifths of the sum of those moneys—

(a) on the construction, reconstruction, maintenance and repair of rural roads or on the purchase of road-making plant for use in connexion with rural roads; or


(b) in making payments to municipal and other local authorities for the construction, reconstruction, maintenance and repair of rural roads or for the purchase of road-making plant for use in connexion with rural roads.

(3.) Each State may, out of the moneys paid to it under this Act in a year, expend in that year, otherwise than on roads, an amount, not exceeding the amount ascertained in respect of that State by apportioning the sum of One million pounds amongst the States in the same proportions as an amount payable to the States under section four of this Act in respect of the year is divisible amongst the States, on works connected with transport by road or water.

Certified statement of expenditure to be furnished.

8. Payment of an amount to a State under this Act is subject to the condition that the State will, as soon as practicable after the thirtieth day of June in each year, submit to the Minister of State for Shipping and Transport—

(a) a statement, in accordance with a form approved by the Minister, of the expenditure by the State out of that amount in that year and of the balance of that amount remaining unexpended at the end of that year; and

(b) a certificate by the Auditor-General of the State that amounts shown in the statement as expended have been expended by the State and the expenditure has been in accordance with this Act.

Additional conditions.

9. In addition to the conditions specified in any other provision of this Act, payment of an amount to a State under this Act is subject to the conditions that—

(a) if the Minister of State for Shipping and Transport informs the Treasurer of the State that he is satisfied that the State has failed to comply with the conditions applicable to that amount, the State will repay that amount to the Commonwealth; and

(b) if that amount exceeds the amount properly payable, the State will repay the excess to the Commonwealth.

Advances.

10. The Treasurer may, at such times as he thinks fit, make advances of such amounts as he thinks fit to a State on account of an amount that may become payable under this Act to the State.

Appropriation.

11. Payments under this Act shall be made out of the Consolidated Revenue Fund, which is appropriated accordingly.

Overview

The Commonwealth Aid Roads Act 1959 was enacted to provide financial assistance to the states for the development, maintenance, and improvement of roads and related transport infrastructure. This legislation was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia and received Royal Assent on 22nd May, 1959. The primary objective of this Act is to support the construction, reconstruction, maintenance, and repair of roads and other transport-related works through financial grants to the states. The Act specifies a basic grant that is to be divided among the states based on population, area, and the number of registered motor vehicles, with a particular emphasis on rural roads. Furthermore, it provides for additional grants based on the states' own allocations for road purposes, ensuring that increased state funding for roads can be supplemented by Commonwealth assistance.

Scope and Application

The Commonwealth Aid Roads Act 1959 provides financial assistance to the States for the construction, reconstruction, maintenance, and repair of roads, specifically targeting rural roads. The Act applies to all Australian states, and the financial assistance is structured as a basic grant and an additional grant, which is contingent on the state’s allocation of its own resources for road expenditure. The financial assistance is distributed based on the state's population, land area, and number of registered motor vehicles. The states must expend at least two-fifths of the grant on rural roads and can also spend a limited amount on transport-related works. The Act includes provisions for the Treasurer to make advances to states and requires states to submit certified statements of expenditure to the Minister of State for Shipping and Transport. The Act's financial provisions are subject to specific conditions and can be amended or further defined through subordinate instruments.

Key Provisions

The Commonwealth Aid Roads Act 1959 (sections 4 and 5) specifies the financial assistance to be provided to the States for road construction and maintenance over a period of five years, starting from 1 July 1959. The Act outlines a basic grant of £40 million for the first year, increasing annually to £48 million by the fifth year. This grant is to be divided among the States based on population, area, and the number of registered motor vehicles. A special additional grant (section 6) is provided if a State allocates more of its own resources to road expenditure in a subsequent year than in the previous year, up to a certain quota. These funds are intended for the construction, reconstruction, maintenance, and repair of roads, as well as for purchasing road-making plant and supporting related research (section 7). States must also ensure that at least 40% of the funds are used for rural roads and may use up to one million pounds for transport-related works (section 7). The Act imposes obligations on the States to submit certified expenditure statements to the Minister of State for Shipping and Transport (section 8) and to repay any overpayments or misused funds (section 9). Furthermore, the Treasurer has the authority to make advances to the States (section 10), with payments being made from the Consolidated Revenue Fund (section 11). The Act sets out specific obligations for the States, including the requirement to submit certified statements of expenditure to the Minister of State for Shipping and Transport by 30 June each year (section 8). These statements must detail how the funds were spent and any unexpended balance, accompanied by a certificate from the State's Auditor-General confirming the accuracy of the expenditure and compliance with the Act. Additionally, States must ensure that a minimum of 40% of the funds received are used for rural roads, and they must adhere to the allocation limits for transport-related works. Failure to comply with these conditions or misusing the funds may result in the State being required to repay any excess amounts to the Commonwealth (section 9). The Act also allows for the Treasurer to make advances to the States on account of future payments (section 10), with all payments being sourced from the Consolidated Revenue Fund (section 11). The Act does not explicitly outline specific offences, penalties, or consequences for breaches within its text. However, the obligation to repay any misused funds or overpayments (section 9) implies a civil consequence for non-compliance. Additionally, the requirement to submit accurate expenditure statements and certified compliance (section 8) suggests that failure to do so could result in the withholding of future payments or other administrative actions. Although the Act does not specify maximum penalties, breaches of these conditions could potentially lead to financial restitution and administrative enforcement measures.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.