Roads Grants Act 1981

Administered by Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

Legislation au C2004A02465 Not in force Act

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Roads Grants Act 1981

Act No. 88 of 1981 as amended

[Note: This Act was repealed by Act No. 8 of 2005 on 22 February 2005]

This compilation was prepared on 27 March 2000
taking into account amendments up to Act No. 146 of 1999

The text of any of those amendments not in force
on that date is appended in the Notes section

Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra

 

 

 

Contents

Part I—Preliminary

1 Short title [see Note 1]

2 Commencement [see Note 1]

3 Interpretation

Part II—National Roads

4 Interpretation

5 Declaration of national highways and developmental roads

6 Standards for national roads

7 Approval of programs

8 Grants for national roads

9 Condition of grant of financial assistance for national roads

Part III—Arterial Roads

10 Grants for arterial roads

11 Condition of grant of financial assistance for arterial roads

Part IV—Local Roads

12 Interpretation

13 Principles relating to allocations for local roads

14 Approval of programs of allocations for local roads where no principles formulated

15 Grants for local roads

16 Condition of grant of financial assistance for local roads

Part V—General

17 Variations of amounts specified in Schedules by reason of inability to expend arterial or local roads grant

18 Variations of amounts specified in Schedules by reason of relative priorities

19 Moneys expended after year in which they are paid to State

20 Moneys deemed to have been expended on national roads projects

21 Minister may require State to furnish information

22 Statements of expenditure etc. to be furnished

23 Condition relating to expenditure of moneys granted under this Act

24 Additional conditions with respect to Part II projects

25 Additional conditions with respect to Part III projects

26 Deduction of amount repayable by State

27 Time and manner of payments

28 Payments to States to be made out of Consolidated Revenue Fund or Loan Fund

29 Authority to borrow

30 Application of moneys borrowed

31 Reimbursement of Consolidated Revenue Fund from Loan Fund

32 Appropriation

33 Delegations

Schedule 1—National roads

Schedule 2—Arterial roads

Schedule 3—Local roads

Notes

 

 

An Act to grant financial assistance to the States and to the Northern Territory in relation to roads

Part I—Preliminary

 

1  Short title [see Note 1]

  This Act may be cited as the Roads Grants Act 1981.

2  Commencement [see Note 1]

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

3  Interpretation

 (1) In this Act, unless the contrary intention appears:

arterial road means a road or proposed road that is for the time being declared by the Minister to be an arterial road for the purposes of this Act, or a part of such a road or proposed road.

construction, in relation to a road, includes:

 (a) the reconstruction or realignment of the road;

 (b) the bringing of the road to a higher standard;

 (c) investigation and associated engineering studies in connection with:

 (i) the construction, reconstruction or realignment…

Overview

The Roads Grants Act 1981, enacted by the Parliament of Australia, aimed to address the funding gap for road construction and maintenance across various categories of roads within the states and territories. This Act provided financial assistance to the states and the Northern Territory for national, arterial, and local roads, ensuring adequate infrastructure to support economic activities, trade, and tourism across the nation. The Act's policy objective was to facilitate the development of roads of national importance while also supporting the maintenance and construction of arterial and local roads to enhance connectivity and accessibility across Australia.

Scope and Application

The Roads Grants Act 1981 was an Australian Commonwealth Act that provided financial assistance to the States and the Northern Territory for the construction and maintenance of roads. The Act applied to all States and the Northern Territory, collectively referred to as "State" within the Act, and was concerned with the allocation and expenditure of funds for different categories of roads: national, arterial, and local. The Act's geographic reach was Commonwealth-wide, affecting all States and the Northern Territory. The Act was repealed by the Roads Grants Repeal Act 2005 on 22 February 2005. The Act allowed for the declaration of national highways and developmental roads by the Minister, who could also set standards and approve programs for the construction and maintenance of these roads. Financial assistance was granted to States for the construction and maintenance of national roads and arterial roads, with conditions attached to the grants, such as the expenditure of funds in accordance with approved programs and adherence to specified standards. For local roads, the Act facilitated the allocation of funds through agreements or determinations made by the Minister, or, in the absence of such agreements or determinations, through the approval of submitted programs. The Act also included provisions for variations in grant amounts based on the inability to expend funds or changes in priorities, as well as conditions for the expenditure of moneys, including additional conditions for projects under Parts II and III of the Act. The Act stipulated the time and manner of payments to States and authorised borrowing and reimbursements between the Consolidated Revenue Fund and the Loan Fund. The Act was subject to amendments through subordinate instruments, as evidenced by the amendments made by the Roads Grants Amendment Acts of 1982 and 1984, and the Public Employment (Consequential and Transitional) Amendment Act 1999.

Key Provisions

  • The Roads Grants Act 1981 primarily deals with the provision of financial assistance to the States and the Northern Territory for the construction and maintenance of roads. Under Part II, the Minister has the authority to declare certain roads as national highways or developmental roads, which are subject to standards set by the Minister for adequate construction and maintenance. Financial assistance for these roads is granted to the States as outlined in Schedules 1 and 2. Part III of the Act pertains to arterial roads, for which financial assistance is granted in accordance with Schedule 2, subject to the condition that the funds are used for the construction of these roads. Part IV addresses local roads, where the Minister can set principles for the allocation of funds, which are detailed in Schedule 3. The grant of financial assistance for local roads is conditional upon the State expending the funds on the construction or maintenance of local roads in accordance with the formulated principles or approved programs.
  • The Act imposes several obligations on the States and the Minister. States are required to submit programs of projects for national and arterial roads for the Minister's approval, and for local roads if no principles have been formulated. The Minister must approve these programs or notify the States of the required information. Furthermore, States must expend the funds received for the specific purposes outlined in the Act and provide statements of expenditure and other relevant information to the Minister for Finance. The Minister can require States to furnish information, enter into agreements for the setting of principles, and may vary or revoke programs or principles as necessary.
  • Breach of the Act's conditions can lead to civil consequences, including the requirement for the State to repay financial assistance to the Commonwealth. The Act does not specify criminal penalties for breaches but implies that non-compliance with financial obligations may result in repayment of funds. Additionally, the Minister for Finance may deduct any repayable amount from future payments to the State. The Act allows for the variation of grant amounts based on the State's ability to expend the funds or due to changes in relative priorities, but ensures that the total amount available for payment to the State remains within the bounds set by the Act.

Legal classification tags

Area of Law
Planning & Development Law
Public Finance Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Delegations
Grants & Subsidies
Reporting & Disclosure Obligations
Conditions of Assistance

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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.