Federal Aid Roads and Works Act 1937

Legislation au C1937A00003 Not in force Act

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FEDERAL AID ROADS AND WORKS.

 

No. 3 of 1937.

An Act to authorize the Execution by the Commonwealth of Agreements between the Commonwealth and the States in relation to the Construction, Re-construction, Maintenance and Repair of Roads and other Works connected with Transport and to make provision for the carrying out thereof.

[Assented to 3rd July, 1937.]

Preamble.

WHEREAS it is expedient to provide for financial assistance to the several States for the purpose of the construction, re-construction, maintenance and repair of roads and other works connected with transport:

Be it therefore enacted by the Kings 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 Federal Aid Roads and Works Act 1937.

Execution of agreement authorized.

2. The execution, by or on behalf of the Commonwealth, of agreements in the form-contained in the Schedule to this Act, between the Commonwealth and each State of the Commonwealth is hereby authorized.

Appropriation of moneys.

3.—(1.) For the purposes of this Act there shall be a Trust Account, known as the Federal Aid Roads and Works Trust Account, which shall be kept in the books of the Treasury.


(2.) The account established in pursuance of this section shall be a Trust Account within the meaning of section sixty-two a of the Audit Act 1901–1934.

(3.) There shall be payable, from time to time, out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, into the Trust Account established in pursuance of this section such amounts as are necessary for the purposes of each agreement executed by or on behalf of the Commonwealth in pursuance of this Act.

Regulations.

4. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to this Act.

 

Section 2. THE SCHEDULE.

 

——

 

Agreement made the day of   One thousand nine hundred and thirty BETWEEN THE COMMONWEALTH OF AUSTRALIA (in this Agreement called the Commonwealth) and THE STATE OF [here insert name of State] (in this Agreement called the State):

Whereas by an Agreement in the form contained in the Schedule to the Federal Aid Roads Act 1926 of the Commonwealth and made on the day of              One thousand nine hundred and twenty              between the Commonwealth and the State (which Agreement was approved adopted authorized and ratified by the [here insert the title of the State Statute] of the State and is hereinafter called the Original Agreement) it was agreed (inter alia) that the Commonwealth would subject to and for the purposes of the Agreement provide the sum therein mentioned during the period of ten years commencing on the first day of July One thousand nine hundred and twenty-six and that subject as therein mentioned the State would provide the additional sum therein mentioned for the purposes of the Agreement:

And Whereas the Original Agreement was varied by two Amending Agreements as follows, namely:—

(a) An agreement in the form contained in the Schedule to the Federal Aid Roads Act 1931 of the Commonwealth and made on the day of              One thousand nine hundred and thirty-one between the Commonwealth and the State which Agreement was approved adopted authorized and ratified by the [here insert the title of the State Statute] of the State and varied the Original Agreement and extended it for the period of six months from the first day of July One thousand nine hundred and thirty-six: and

(b) An Agreement in the form contained in the Schedule to the Federal Aid Roads Act 1936 of the Commonwealth and made on the day of              One thousand nine hundred and thirty between the Commonwealth and the State which Agreement was approved adopted authorized and ratified by the [here insert the title of the State Statute] of the State and extended the Original Agreement as varied by the Amending Agreement aforesaid for six months from the first day of January One thousand nine hundred and thirty-seven:

And Whereas the Commonwealth proposes to make available to the several States for the purposes hereinafter mentioned the amounts hereinafter mentioned in each year during the period of ten years commencing on the first day of July One thousand nine hundred and thirty-seven:

And Whereas the Commonwealth proposes to distribute the said amounts between the several States on the following basis, namely, five per centum to the State of Tasmania, and ninety-five per centum between the several States (excluding


Tasmania) as to three-fifths of such ninety-five per centum, according to their respective populations as at the thirtieth day of June One thousand nine hundred and thirty-six, and as to two-fifths of such ninety-five per centum according to their respective areas:

Now it is hereby agreed as follows:—

1. This Agreement shall have no force or effect and shall not be binding on either party unless and until it is authorized or approved by the Parliaments of the Commonwealth and of the State.

2.—(1.) The Commonwealth will subject to this Agreement and for the purposes mentioned in sub-clause (1.) of clause 4 of this Agreement provide in each year during the period of ten years commencing on the first day of July One thousand nine hundred and thirty-seven a sum equivalent to (a)

of the aggregate of the following amounts namely:—

(a) so much of the duties of customs payable and collected under the Tariff Item specified in this paragraph in respect of the goods specified in this paragraph as shall be equal to 2½d. per gallon of all those goods Which shall be entered for home consumption during that year that is to say, the duties of customs payable and collected under Tariff Item 229 (c) in the Schedule to the Customs Tariff 1933–1936 or under that Tariff Item as amended or proposed to be amended during the continuance of this Agreement in respect of petroleum and shale products, viz.: naphtha, benzine, benzoline, gasoline, pentane, petrol and any other petroleum or shale spirit; and

(b) so much of the duties of excise payable and collected under the Tariff Item specified in this paragraph in respect of the goods specified in this paragraph as shall be equal to 1½d. per gallon of all those goods which shall be entered for home consumption during that year, that is to say, the duties of excise payable and collected under Tariff Item 11 in the Schedule to the Excise Tariff 1921–1936 or under that Tariff Item as amended or proposed to be amended during the continuance of this Agreement in respect of—

(a) petroleum or shale products, viz.: petrol, benzine, benzoline, gasoline, naphtha, pentane, and any other petroleum or shale spirit as described in that Item;

(b) petroleum or shale distillates, viz.: turpentine substitutes; and

(c) coal tar and coke oven distillates (including benzol) suitable for use as petrol substitutes as described in that Item.


(2.) The Commonwealth will subject to this Agreement and for the purposes mentioned in sub-clause (2.) of clause 4 of this Agreement provide in each year during the period of ten years last aforesaid a sum equivalent to (a)

of the aggregate of the following amounts, namely:—

(a) so much of the duties of customs payable and collected under the Tariff Item specified in paragraph (a) of sub-clause (1.) of this clause in respect of the goods specified in that paragraph as shall be equal to ½d. per gallon of all those goods which shall be entered for home consumption during that year; and

(b) so much of the duties of excise payable and collected under the Tariff Item specified in paragraph (b) of sub-clause (1.) of this clause in respect of the goods specified in that paragraph (other than benzol) as shall be equal to ½d. per gallon of all those goods which shall be entered for home consumption during that year.

(3.) All the sums provided under sub-clauses (1.) and (2.) of this clause will be paid by the Commonwealth into a Trust Account established for the purpose under section 62a of the Audit Act 1901–1934.

(4.) Payments will be made monthly to the State out of the moneys for the time being in the said Trust Account and the Minister shall when each payment is made notify the State of the portions of the payment which are made from the sums provided tinder sub-clauses (1.) and (2.) of this clause respectively.

3.—(1.) The Commonwealth will in each year during the period of ten years last aforesaid withdraw from moneys in the said Trust Account and pay into the Sinking Fund an amount equal to Two pounds ten shillings per centum (£2 10s. per cent.) per

 

 

(a) Here insert in the case of—

New South Wales...........................281/1000ths.

Victoria..................................175/1000ths.

Queensland...............................191/1000ths.

South Australia.............................111/1000ths.

Western Australia...........................192/1000ths.

Tasmania.................................50/1000ths.


annum accruing from day to day on so much of the moneys which have been provided by the State for the purposes of the Original Agreement as have been provided from loan moneys.

(2.) The State will on the thirty-first day of December (or on such other date as may be agreed upon between the Commonwealth and the State) in each year after the expiration of the period of ten years last aforesaid pay into the Sinking Fund an amount equal to Two pounds ten shillings per centum (£2 10s. per cent.) per annum accruing from day to day on the amount of loan moneys which have been provided by the State for the purposes of the Original Agreement until the amounts paid into the Sinking Fund under the Original Agreement as varied as aforesaid and under this Agreement and any amendment of this Agreement in respect of such loan moneys together with the Sinking Fund contributions in respect of such loan moneys provided for by the Financial Agreement are sufficient to provide for the redemption of the said loan moneys. For the purposes of this clause the said payments and contributions shall be deemed to accumulate at the rate of four and a half per centum (4½ per cent.) per annum compounded.

(3.) The Sinking Fund hereinbefore referred to is the National Debt Sinking Fund established under the National Debt Sinking Fund Act 1923–1934 of the Commonwealth or any amendment thereof or any Sinking Fund established in lieu thereof and all moneys paid into such Funds shall be applied as if they were Sinking Fund contributions paid under the Financial Agreement in respect of the Public Debt of the State.

(4.) The Financial Agreement hereinbefore referred to is the Agreement set forth in the Schedule to the Financial Agreement Validation Act 1929 of the Commonwealth and in the Schedule to the [here insert the title of the State Statute approving the Financial Agreement] of the State and validated and approved by those Acts.

(5.) Sub-clause (2.) of clause 4 of the Original Agreement as varied as aforesaid shall cease to have effect upon the first day of July One thousand nine hundred and thirty-seven.

4.—(1.) All moneys paid to the State from the sums provided under sub-clause (1.) of clause 2 of this Agreement shall be expended upon the construction re-construction maintenance or repair of roads.

(2.) All moneys paid to the State from the sums provided under sub-clause (2.) of clause 2 of this Agreement shall be expended upon the construction re-construction maintenance or repair of roads or other works connected with transport as the State may think fit.

5.—(1.) Whenever so required by the Minister the State during the period of ten years commencing on the first day of July One thousand nine hundred and thirty-seven and not thereafter will to the reasonable satisfaction of the Minister make provision for the proper maintenance and repair, to a standard necessary to meet the requirements of the Commonwealth and other traffic using such roads, of public roads adjoining or of approach to properties of the Commonwealth within the State.

(2.) The State shall not be required to make any provision under this clause—

(a) in any year in excess of an amount equivalent to one-twelfth of the moneys paid to the State in that year from the sums provided under sub-clause (2.) of clause 2 of this Agreement; or

(b) with respect to roads within the boundaries of the properties of the Commonwealth.

(3.) In this clause properties of the Commonwealth includes establishments, works and activities of the Commonwealth.

6. Any notice, requirement or other communication to be given or made by the Commonwealth or the Minister to the State under this Agreement shall be deemed to have been duly given or made if signed by or on behalf of the Minister and delivered by hand or sent by prepaid post addressed to the Minister of at his office in

7. In this Agreement the Minister means the Minister of State of the Commonwealth for the Interior for the time being and includes any Minister of State of the Commonwealth or member of the Federal Executive Council for the time being acting for and on behalf of the Minister.

In Witness whereof the Prime Minister of the Commonwealth and the Premier of the State have hereunto set their hands the day and year first above written.

Signed, etc.

Signed, etc.

Overview

The Federal Aid Roads and Works Act 1937 was enacted by the Commonwealth Parliament to address the need for financial assistance to the states for the construction, reconstruction, maintenance and repair of roads and other transport-related works. The Act authorises the execution of agreements between the Commonwealth and the states, providing funding from the Federal Aid Roads and Works Trust Account, which is funded by the Consolidated Revenue Fund. The policy objective of the Act is to facilitate the development and upkeep of transport infrastructure, thereby enhancing connectivity and economic activity across the nation. Regulations may be made to implement the Act, ensuring its effective administration and enforcement.

Scope and Application

The Federal Aid Roads and Works Act 1937 applies to the Commonwealth of Australia and each State within the Commonwealth. The Act authorizes the Commonwealth to enter into agreements with each State to provide financial assistance for the construction, reconstruction, maintenance, and repair of roads and other works connected with transport. The Act establishes a Trust Account, known as the Federal Aid Roads and Works Trust Account, into which appropriated funds will be deposited. The Act allows for the creation of regulations to facilitate the implementation of the Act, provided they do not conflict with its provisions. The geographic reach of the Act is national, as it involves agreements between the Commonwealth and each State, thus covering the entire territory of Australia. The Act does not specify any exclusions, exemptions, or thresholds, and its provisions are to be carried out in accordance with the terms of the agreements executed under the authority of the Act. Any additional details or specifications required for the execution of the Act are to be prescribed through regulations made by the Governor-General.

Key Provisions

The Federal Aid Roads and Works Act 1937 (section 1) provides for financial assistance to the several States for the purpose of the construction, reconstruction, maintenance, and repair of roads and other works connected with transport. The Act authorizes the execution of agreements between the Commonwealth and each State in relation to these works (section 2). It establishes the Federal Aid Roads and Works Trust Account, into which moneys from the Consolidated Revenue Fund are appropriated for the purposes of these agreements (section 3). Regulations may be made under section 4, not inconsistent with the Act, to prescribe matters necessary or convenient to carry out the Act. The Act imposes certain obligations on the parties. The Commonwealth is required to provide financial assistance through the Trust Account, with payments made to the States for the construction, reconstruction, maintenance, and repair of roads (section 3(1)). The States must expend the moneys on the works mentioned in the agreement and ensure the proper maintenance and repair of public roads adjoining or leading to Commonwealth properties (section 4(1) and (2)). The States must also make contributions to the Sinking Fund to redeem any loan moneys provided for the works (section 3(2)). Failure to comply with the provisions of the Act may result in civil or criminal consequences. For instance, the Act does not explicitly state penalties for non-compliance, but breaches of trust account management or failure to use funds for the agreed purposes could lead to legal action under the relevant trust or appropriation statutes. Additionally, the Act authorizes the Governor-General to make regulations that could include penalties for non-compliance with the terms of the agreement or misuse of funds.

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Finance & Banking Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Appropriation of Moneys
Trust Account
Regulations
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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.