Commonwealth Grants Commission Amendment Act 1978

Administered by Department of the Treasury

Legislation au C2004A01885 In force Act

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COMMONWEALTH GRANTS COMMISSION AMENDMENT ACT 1978

No. 86 of 1978

An Act to amend the Commonwealth Grants Commission Act 1973.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Commonwealth Grants Commission Amendment Act 1978.

(2) The Commonwealth Grants Commission Act 1973 is in this Act referred to as the Principal Act.

Commencement

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Sections 3, 5, 9 and 15 shall come into operation on 1 July 1978.

Long title

3. The long title of the Principal Act is amended by inserting “and to the Northern Territory’’ after “the States’’.

Definitions

4. Section 4 of the Principal Act is amended—

(a) by inserting before the definition of “Chairman” the following definition:

“‘associate member’ means an associate member of the Commission appointed under section 19a;”; and

(b) by adding “appointed under section 8” at the end of the definition of “member”.

Meaning of special assistance

5. Section 5 of the Principal Act is amended—

(a) by omitting “are references” and substituting “shall be read as references”; and

(b) by adding at the end thereof the following sub-section:

“(2) References in this Act to the grant of special assistance to the Northern Territory shall be read as references to the grant of financial assistance to the Northern Territory for the purpose of making it possible for the Northern Territory, by reasonable effort, to function, in respect of matters for which the Ministers of that Territory have executive authority, at standards not appreciably below the standards of the States.”.

Membership of Commission

6. Section 8 of the Principal Act is amended—

(a) by omitting from sub-section (1) “The Commission” and substituting “Subject to section 19a, the Commission”;

(b) by inserting after sub-section (5) the following sub-section:

“(5a) A person who is employed by the Commonwealth or by a State in a full-time capacity is not eligible for appointment as a part-time member.”; and

Termination of appointments

7. Section 12 of the Principal Act is amended—

(a) by inserting after sub-section (4) the following sub-section:

“(4a) If a part-time member becomes employed by the Commonwealth or by a State in a full-time capacity, the Governor-General shall remove the member from office.”; and

(b) by omitting sub-section (6).

Duties of Chairman

8. Section 15 of the Principal Act is amended—

(a) by inserting in paragraph (c) of sub-section (1) “and associate members “after “members”; and

(b) by inserting in sub-section (2) “and associate members” after “members”.

9. After section 16 of the Principal Act the following section is inserted:

Assistance to the Northern Territory

“16a. The Commission shall inquire into and report to the Minister upon—

(a) any application made by the Northern Territory for a grant of special assistance to that Territory;

(b) any matters, being matters relating to a grant of financial assistance made by the Commonwealth to the Northern Territory, that are referred to the Commission by the Minister; and

(c) any matters, being matters relating to the making of a grant of financial assistance by the Commonwealth to the Northern Territory, that are referred to the Commission by the Minister.”.

Inquiries by Commission

10. Section 19 of the Principal Act is amended—

(a) by inserting in sub-section (3) “not less than” after “Chairman and”;

(b) by omitting from paragraph (a) of sub-section (5) “, being a member of the Division,”;

(d) by adding at the end thereof the following sub-section:

“(9) This section does not apply to or in relation to an inquiry into, and report on, the matter referred to in sub-section 19a(1) by a Division of the Commission constituted in accordance with section 19a.”.

11. After section 19 of the Principal Act the following section is inserted:

Inquiry and report concerning grants under States (Personal Income Tax Sharing) Act

“19a. (1) Where the matter referred to in sub-section 13(3) of the States (Personal Income Tax Sharing) Act 1976 is referred to the Commission under paragraph 16(c) of this Act, this section applies to and in relation to the inquiry into the matter by the Commission.

“(2) As soon as practicable after the matter referred to in sub-section 13(3) of the States (Personal Income Tax Sharing) Act 1976 is referred to the Commission, the Minister shall arrange for the Premiers of the States to be informed, in writing, that the matter has been referred to the Commission and to be invited to nominate persons for appointment, in accordance with sub-section (3) of this section, as associate members of the Commission for the purposes of the inquiry into the matter.

“(3) Subject to this section, for the purposes of an inquiry to which this section applies, the powers of the Commission shall, notwithstanding sections 8 and 19, be exercised by a Division of the Commission consisting of—

(a) the Chairman and two other members of the Commission; and

(b) three part-time associate members of the Commission appointed by the Governor-General for the purposes of the inquiry, being one associate member appointed on the nomination of the Premier of New South Wales and the Premier of Victoria and two associate members appointed on the nomination of the Premier of Queensland, the Premier of South Australia, the Premier of Western Australia and the Premier of Tasmania.

“(4) Where the Commission is required to hold an inquiry to which this section applies, the Chairman shall, if the Commission consists of the Chairman and more than two other members, by writing under his hand, determine that two of those other members specified in the determination shall be members of the Division of the Commission constituted under this section for the purposes of the inquiry.

“(5) Where the Chairman has made a determination under sub-section (4) in relation to an inquiry to which this section applies, he may, by writing under his hand, at any time before the Division of the Commission constituted for the purposes of the inquiry has completed the inquiry and made its report, amend the determination in relation to the other members of the Commission who are to be members of the Division of the Commission constituted under this section for the purposes of the inquiry.

“(6) If the Premiers of the States have not nominated three persons for appointment, in accordance with sub-section (3), as associate members of the Commission for the purposes of an inquiry to which this section applies within three months after they have been invited to do so, the Commission shall, upon being requested by the Minister to do so, inquire into, and report on, the matter notwithstanding a vacancy or vacancies in the number of associate members of the Commission for the purposes of the inquiry, and the Division of the Commission required to exercise the powers of the Commission for the purposes of the inquiry shall then be deemed to consist of the Chairman and two other members of the Commission and such associate members (if any) as have been appointed in accordance with sub-section (3) for the purposes of the inquiry.

“(7) A person is not eligible to be appointed as an associate member of the Commission if he is employed by the Commonwealth or by a State in a full-time capacity.

“(8) An associate member of the Commission holds office for such period as is specified in the instrument of his appointment, but is eligible for re-appointment.

“(9) Subject to sub-section (10), sections 9a, 11, 12 and 13 apply to and in relation to an associate member of the Commission as if references in those sections to a member were references to an associate member.

“(10) The Minister–

(a) shall not appoint a person to be an acting associate member of the Commission except on the nomination of the Premiers of the States who nominated the associate member in whose place he is being appointed; and

(b) shall not appoint a person to be an acting full-time associate member.

“(11) For the purposes of an inquiry to which this section applies—

(a) the Commission shall be deemed to consist of the Division of the Commission constituted, in respect of the inquiry, in accordance with this section; and

(b) at a meeting of the Division of the Commission so constituted—

(i) if the Chairman is present—the Chairman shall preside;

(ii) if the Chairman is not present—a member of the Division (other than an associate member of the Commission) appointed for the purpose by the Chairman shall preside;

(iii) a majority of the members and associate members constituting the Division form a quorum; and

(iv) the Chairman, or the member presiding at the meeting, has a deliberative vote, but does not have a casting vote.

“(12) The appointment of an associate member of the Commission is not invalidated, and shall not be called in question, by reason of a defect or irregularity in connexion with his nomination.

“(13) Without limiting the application of sub-section 8 (6) in relation to an inquiry to which this section applies, the exercise of the powers of the Commission for the purposes of the inquiry is not affected by reason only of there being a vacancy in an office, or vacancies in the offices, of associate member.

“(14) Where the membership of the Division of the Commission constituted in accordance with this section for the purposes of an inquiry to which this section applies is changed before the Division has completed the inquiry and made its report, the Division as constituted after the change may complete the inquiry and report.

“(15) A meeting of a Division of the Commission constituted in accordance with this section may be held notwithstanding that a meeting of another Division of the Commission constituted under section 19 is being held at the same time.”.

Administration of oath

12. Section 22 of the Principal Act is amended by inserting “or associate member” after “member”.

Penalty for refusing to give evidence

13. Section 23 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-section:

“(2) For the purposes of sub-section (1), a question shall be deemed to have been put to a witness by the Commission—

(a) if it is put by any of the members, or members and associate members, who are exercising the powers of the Commission in relation to the matter; or

(b) if, with the approval of a majority of the members, or members and associate members, who are exercising the powers of the Commission in relation to the matter, it is put by a person authorized by a majority of those members, or members and associate members, to appear in connexion with the taking of the evidence.”.

Giving false evidence

14. Section 24 of the Principal Act is amended by inserting “, or members and associate members,” after “members”.

Reports to be laid before Parliament

15. Section 25 of the Principal Act is amended by omitting “section 16 or 17” (wherever occurring) and substituting “section 16, 16a or 17”.

Savings

16. Section 26 of the Principal Act is repealed.

Overview

The Commonwealth Grants Commission Amendment Act 1978 was enacted by the Parliament of Australia to amend the Commonwealth Grants Commission Act 1973. The Act was introduced to address the need for updates and refinements in the administration and operation of the Commonwealth Grants Commission, particularly concerning the inclusion of the Northern Territory in the scope of the Commission’s activities. The Act outlines several amendments to the Principal Act, including the introduction of associate members to the Commission, changes in membership eligibility and duties, and modifications to the procedures for handling inquiries and reports, particularly those relating to financial assistance to the Northern Territory. The policy objective is to ensure that the Commission can effectively carry out its functions with regard to the equitable distribution of grants among the states and territories.

Scope and Application

The Commonwealth Grants Commission Amendment Act 1978 applies to the Commonwealth Grants Commission and its members, including any newly appointed associate members, and pertains to the operations and procedures of the Commission, particularly concerning the granting of financial assistance to the Northern Territory. The Act extends its jurisdiction to encompass the Commonwealth, states, and territories of Australia, with a particular emphasis on the Northern Territory. Notably, the Act does not specify any exclusions or exemptions from its application, nor does it establish thresholds for the financial assistance it regulates. The Act's provisions are complemented by subordinate instruments that may further extend or detail the application of the Act. These instruments allow for the detailed regulation of the Commission’s processes and the administration of grants, ensuring that the objectives of the Act are met comprehensively and effectively.

Key Provisions

The Commonwealth Grants Commission Amendment Act 1978 (C2004A01885) primarily amends the Commonwealth Grants Commission Act 1973 (the Principal Act) by introducing several new provisions and modifying existing ones. The Act introduces new definitions, alters membership criteria, expands the duties of the Commission, and includes new sections on the inquiry and reporting processes, especially concerning the Northern Territory and the States (Personal Income Tax Sharing) Act 1976. Section 4 of the Principal Act is amended to include the definition of "associate member" and to clarify the appointment process for members. The meaning of "special assistance" is expanded in Section 5 to include financial assistance to the Northern Territory, ensuring it can function at standards comparable to the States. Section 6 modifies the eligibility criteria for Commission members, excluding those employed full-time by the Commonwealth or a State. Section 7 stipulates that part-time members employed full-time by the Commonwealth or a State must be removed from their positions. The Act imposes several obligations on the parties it governs. Firstly, it mandates that the Commission must inquire into and report on applications for special assistance by the Northern Territory, as well as any matters referred by the Minister regarding financial assistance to the Northern Territory (Section 16a). It also requires the Commission to conduct inquiries and report on matters related to grants under the States (Personal Income Tax Sharing) Act 1976, with specific provisions for the appointment of associate members and the composition of the Division of the Commission (Section 19a). The Act also details the procedures for administering oaths and the consequences for refusing to give evidence or providing false evidence, ensuring that the Commission's inquiries are conducted with due process (Sections 22 and 23). Additionally, it requires that the Commission's reports be laid before Parliament (Section 25). Failure to comply with the provisions of the Act can result in civil or criminal penalties. For instance, Section 23 amends the penalty for refusing to give evidence, making it an offence with specified penalties. Similarly, Section 24 expands the consequences for giving false evidence to include proceedings against members and associate members. While the Act does not explicitly state maximum penalties for these offences, they are typically defined under the relevant laws governing the administration of justice in Australia. The Act also ensures that the exercise of the Commission's powers is not impeded by vacancies in the office of associate members, thereby maintaining the continuity and effectiveness of the Commission's work.

Area of Law: Administrative Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Repeal & Amendment; Licensing & Registration

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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.

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