Local Government (Financial Assistance) Amendment Act 1992

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Local Government (Financial Assistance) Amendment Act 1992

No. 97 of 1992

 

An Act to amend the Local Government (Financial Assistance) Act 1986

[Assented to 30 June 1992]

The Parliament of Australia enacts:

Short title etc.

1. (1) This Act may be cited as the Local Government (Financial Assistance) Amendment Act 1992.

(2) In this Act, Principal Act means the Local Government (Financial Assistance) Act 19861.

Commencement

2. This Act commences on the day on which it receives the Royal Assent.


Interpretation

3. Section 3 of the Principal Act is amended:

(a) by omitting 1992 from the definition of "base figure" and substituting 1995;

(b) by omitting subparagraph (c)(ii) of that definition and substituting the following subparagraphs:

(ii) the year commencing on 1 July 1992; or

(iii) the year commencing on 1 July 1993; or

(iv) the year commencing on 1 July 1994; or

(v) the year commencing on 1 July 1996 or a subsequent year;".

Additional untied funding

4. Section 10A of the Principal Act is amended by omitting subsections (3) and (4) and substituting the following subsections:

(2A) Subject to this section and to section 10C, each State is entitled to the payment in respect of a year (current year), being:

(a) the year commencing on 1 July 1992; or

(b) the year commencing on 1 July 1993; or

(c) the year commencing on 1 July 1994;

by way of financial assistance for local government purposes, of the amount worked out using the formula:

where:

Previous year untied funding means the amount that would have been payable to the State under this section for the year preceding the current year if that amount had been calculated using the final factor for that preceding year instead of the estimated factor;

Estimated factor means the estimated factor for the current year.

(2B) Subject to this section and to section 10C, Tasmania and the Northern Territory are entitled to the payment, in respect of the year commencing on 1 July 1992, by way of financial assistance for local government purposes, of the amount calculated using the formula:

where:

Estimated factor means the estimated factor for the year;

Gazetted amount means the amount determined by the Minister after consultation with the respective States and Municipal Association of Tasmania in the case of Tasmania and the Local Government Association of the Northern Territory in the case of the Northern Territory, by notice published in the Gazette, to be the gazetted amount in relation to that State.


(2C) The amount determined for the purposes of the definition of Gazetted amount' in subsection (2B) is to be less than:

(a) in the case of Tasmania—$5,193,000; or

(b) in the case of the Northern Territory—$12,100,000.

(3) A State is not entitled to a payment under this section in respect of a year until 15 August in that year.

(4) A State is not entitled to a payment under this section in respect of a year unless a notice under section 5 has been given in relation to that year..

Adjustment consequential on difference between estimated and final factorsection 10A payments

5. Section 10B of the Principal Act is amended:

(a) by omitting from subsection (1) the year commencing on 1 July 1991 and substituting a relevant year;

(b) by inserting in the definitions of Final factor amount and Estimated factor amount in subsection (1) in respect of that year after section 10A;

(c) by omitting from subsection (2) the year commencing on 1 July 1991 and substituting a relevant year;

(d) by inserting in the definitions of Estimated factor amount and Final factor amount in subsection (2) in respect of that year after section 10A;

(e) by omitting subsection (3) and substituting the following subsection:

(3) If an amount is payable to a State under subsection (1) in respect of a year, nothing in this Act prevents that amount from being paid to the State together with a payment to which the State is entitled under section 7 in respect of the next succeeding year.;

(f) by adding at the end the following subsection:

(6) A reference in this section to a relevant year is a reference to a year commencing on 1 July 1991, 1 July 1992, 1 July 1993 or 1 July 1994..

Allocation amongst local governing bodies—section 10A payments

6. Section 10C of the Principal Act is amended by inserting after paragraph (1)(d) the following paragraph:

(da) in the case of an amount under subsection 10A(2A) or (2B)—the Commission has made its recommendations in accordance with any relevant principles approved or determined by the Minister, being principles that relate to expenditure on roads by local governing bodies; and".


NOTE

1. No. 79, 1986, as amended. For previous amendments, see Nos. 45 and 141, 1987; No. 50, 1988; No. 62, 1989; and No. 78, 1991.

[Minister's second reading speech made in

House of Representatives on 7 May 1992 Senate on 28 May 1992]

Overview

The Local Government (Financial Assistance) Amendment Act 1992 was enacted by the Parliament of Australia to amend the Local Government (Financial Assistance) Act 1986. This legislation responds to the need for adjustments and updates to the financial assistance provided to local governments, ensuring that the support mechanisms are in line with the evolving fiscal requirements and policy objectives of the time. The Act aims to provide a more flexible and responsive financial assistance scheme by amending certain provisions of the Principal Act, including changes to the formula for calculating untied funding and the conditions under which payments are made. The policy objective is to enhance the financial stability and operational capacity of local governments through more accurate and timely financial support. The Act includes amendments to the interpretation of certain terms, adjustments to the formula for calculating untied funding, and modifications to the conditions for payments. The changes are designed to address the discrepancies between estimated and final factors, ensuring that payments reflect actual fiscal needs more accurately. Additionally, the Act introduces new criteria for the allocation of funds among local governing bodies, particularly focusing on road expenditure, thereby aligning financial assistance with priority areas of local government spending.

Scope and Application

The Local Government (Financial Assistance) Amendment Act 1992 applies to the Commonwealth of Australia and amends the Local Government (Financial Assistance) Act 1986. This Act specifically targets financial assistance for local government purposes, particularly by way of payments to states and territories. It extends its application to the years commencing on 1 July 1992, 1 July 1993, and 1 July 1994, with specific provisions for Tasmania and the Northern Territory. The Act also adjusts the formula for calculating payments based on estimated and final factors, affecting how financial assistance is allocated among local governing bodies. Notably, the Act includes provisions for gazetted amounts for Tasmania and the Northern Territory, which must be less than specified thresholds. There are no explicit exclusions or exemptions mentioned in the Act, but its provisions are contingent upon certain conditions being met, such as the timing of notices given under section 5 and the recommendations of the Commission relating to expenditure on roads by local governing bodies.

Key Provisions

The Local Government (Financial Assistance) Amendment Act 1992 amends the Local Government (Financial Assistance) Act 1986 by updating the base figure for calculating financial assistance payments to local governments. The definition of "base figure" is amended to reflect the year 1995 instead of 1992 (Section 3). Additionally, the Act modifies the years included in the calculation of this base figure to ensure it encompasses specific fiscal years (Section 3). The Act introduces changes to the additional untied funding provided to states, specifying the formula for calculating payments for certain years (Section 4). It also adjusts the formula for calculating payments for Tasmania and the Northern Territory (Section 4). It is important to note that payments will not be made until 15 August of the relevant year and only if a notice has been issued under section 5 (Section 4). The Act further modifies the adjustment mechanism for differences between estimated and final factors, applying this to relevant years (Section 5). Lastly, the Act introduces a new principle for allocating financial assistance payments, requiring the Commission to make recommendations based on expenditure on roads by local governing bodies (Section 6). The Act imposes obligations on states and local governing bodies to ensure compliance with the new financial assistance framework. States must adhere to the updated formulas and timelines for calculating and receiving payments. Local governing bodies, in turn, must comply with the new allocation principles related to road expenditures. The Act requires states to ensure that payments are not made until 15 August of the relevant year and only after a notice has been issued under section 5. The Commission is also required to make recommendations in accordance with the new principles approved by the Minister. Breaches of the obligations and requirements outlined in the Act may result in civil or criminal consequences. While the Act does not explicitly state maximum penalties for breaches, violations of provisions related to financial assistance could potentially lead to legal actions under other relevant legislation. It is essential for states, local governing bodies, and the Commission to comply with the new provisions to avoid any potential legal repercussions.

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Area of Law
Local Government Law
Instrument
Amending Act
Concepts
Definitions & Interpretation
Repeal & Amendment
Commencement Provisions

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