States Grants Act 1965

Legislation au C1965A00088 Not in force Act

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States Grants

No. 88 of 1965

An Act to grant Financial Assistance to the States.

[Assented to 4 December, 1965]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the States Grants Act 1965.

Commencement.

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

Repeal.

3.—(1.) The States Grants Act 1959 is repealed.

(2.) A State is not entitled to a grant under the States Grants Act 1959, by virtue of its operation during the year that commenced on the first day of July, One thousand nine hundred and sixty-five, and before the commencement of this Act, in respect of that year.

(3.) Any advance made to a State under the States Grants Act 1959 during the year that commenced on the first day of July, One thousand nine hundred and sixty-five, and before the commencement of this Act shall be deemed to be an advance made under section 8 of this Act in respect of the grant payable to that State under this Act during that year.

Interpretation.

4.—(1.) In this Act, year means financial year.

(2.) For the purposes of this Act, the average wages per person employed, in relation to a year, is the amount ascertained by dividing the aggregate of the amounts shown, in the returns lodged throughout the Commonwealth by employers for the purposes of the Pay-roll Tax Assessment Act 19411963, as wages within the meaning of that Act paid or payable in respect of periods ending in that year by the sum of the mean number of males and fifty-five per centum of the mean number of females shown by those returns as having been employed by those employers during that year.


Grants to States.

5.—(1.) There is payable to each State, during the year that commenced on the first day of July, One thousand nine hundred and sixty-five, and during each year subsequent to that year, for the purpose of financial assistance, an amount equal to the sum of—

(a) an amount that bears the same proportion to the amount of the grant under this section payable to that State during the year preceding the year concerned as the population of that State on the thirty-first day of December in the year concerned bears to the population of that State on the thirty-first day of December in the year preceding the year concerned;

(b) if the average wages per person employed in the year preceding the year concerned exceed the average wages per person employed in the year next before the year preceding the year concerned—an amount equal to such percentage of the amount ascertained under the last preceding paragraph as is equal to the percentage by which the first-mentioned average wages exceed the second-mentioned average wages; and

(c) an amount equal to 1.2 per centum of the sum of the amount ascertained in accordance with paragraph (a) of this sub-section and the amount, if any, ascertained in accordance with the last preceding paragraph.

(2.) For the purpose of ascertaining the amount of the grant under this section payable to each State during the year that commenced on the first day of July, One thousand nine hundred and sixty-five, there shall be deemed to be payable under this section to the State during the year preceding that year a grant equal in amount to—

(a) in the case of a State other than the State of Queensland—the amount of the grant payable to the State under the States Grants Act 1959 during the year that commenced on the first day of July, One thousand nine hundred and sixty-four; or

(b) in the case of the State of Queensland—the sum of the amount of the grant payable to the State of Queensland under that Act during that year and One million pounds.

(3.) For the purpose of ascertaining the amount of the grant payable to the State of Queensland during the year commencing on the first day of July, One thousand nine hundred and sixty-six, and during each of the three succeeding years, the amount of the grant under this section payable to that State during the year preceding the year concerned shall be deemed to be an amount equal to the sum of the amount of that last-mentioned grant and One million pounds.


(4.) The amount of the grant under this section that would, but for this sub-section, be payable to the State of Victoria during the year that commenced on the first day of July, One thousand nine hundred and sixty-five, shall, by virtue of this sub-section, be increased by Six hundred thousand pounds.

Statistical calculations, &c.

6.—(1.) All statistical and mathematical calculations and determinations required for the purposes of this Act shall be made by the Commonwealth Statistician, after consultation, where practicable, with the official Statisticians of the States.

(2.) For the purpose of ascertaining the amount of the grant payable under this Act to each State during a year—

(a) the determination of the population of each State on the thirty-first day of December in the year concerned and on the thirty-first day of December in the year preceding the year concerned—

(i) shall be made after the thirty-first day of December, and not later than the first day of June, in the year concerned; and

(ii) shall have regard to the latest statistics in relation to population available to the Commonwealth Statistician on the day on which the determination is made; and

(b) the ascertainment of the average wages per person employed in a year preceding the year concerned shall be made after the commencement of, and not later than the thirty-first day of December in, the year concerned.

(3.) All calculations and determinations made by the Commonwealth Statistician in pursuance of this section for the purpose of ascertaining the amount of the grant payable under this Act to a State during a year shall, for that purpose, be conclusively presumed to be correct.

Review of grants.

7.—(1.) The Government of the Commonwealth shall, at the request of a State, or may, if it considers it desirable to do so, enter into consultation with the Governments of the States with a view to determining whether any change is desirable in the provisions of this Act in so far as they relate to the year subsequent to the year ending on the thirtieth day of June, One thousand nine hundred and seventy, and to submit to the Parliament legislation to give effect to any changes that the Government of the Commonwealth considers to be desirable as a result of that consultation.


(2.) If there has occurred, or there is proposed to be, a substantial change in the financial arrangements between the Commonwealth and a State or States, the Government of the Commonwealth may review the provisions of this Act in consultation with the States with a view to submitting to the Parliament legislation to give effect to any changes it considers to be desirable as a result of that review.

Payment of grant.

8. The Treasurer may, in any year, make monthly or other advances to any State, for the purpose of financial assistance, of portions of the grant to which it appears to him the State will be entitled under this Act in respect of that year.

Appropriation.

9. Payments in accordance with this Act shall be made out of the Consolidated Revenue Fund, which is appropriated accordingly.

 

Overview

The States Grants Act 1965, assented to on 4 December 1965, was enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. This Act was established to provide financial assistance to the States by replacing the States Grants Act 1959, which was repealed by this Act. The policy objective of the Act is to offer grants to each State for the purpose of financial assistance, calculated based on the population of each State and the average wages per person employed. The Act also provides for the review of grants and specifies that payments under this Act shall be made out of the Consolidated Revenue Fund. The calculations and determinations necessary for ascertaining the amounts of the grants are to be made by the Commonwealth Statistician, with all such determinations conclusively presumed to be correct for the purpose of ascertaining the amount of the grant payable under this Act to a State during a year.

Scope and Application

The States Grants Act 1965 applies to the Commonwealth of Australia and provides a framework for the financial assistance granted to the states. This Act replaced the previous States Grants Act 1959 and establishes a new mechanism for calculating and distributing grants to the states. The act applies to the various states within Australia, which are identified by their population and average wages per person employed. The Act mandates that the Commonwealth Statistician, in consultation with state statisticians where practicable, undertakes all statistical and mathematical calculations required to determine the grants. This includes calculating the population of each state and the average wages, which are used to ascertain the amount of the grant payable to each state. The Act also provides for the review of the grants and the possibility of adjusting the provisions in consultation with the states, especially in the event of substantial changes in financial arrangements between the Commonwealth and the states. The application of this Act is primarily financial, affecting the distribution of funds from the Consolidated Revenue Fund to the states for the purpose of financial assistance. The Act does not explicitly state any exclusions or thresholds, but the grants are calculated based on the population and average wages of each state. The Act may be extended or restricted through subordinate instruments, which would be subject to parliamentary approval.

Key Provisions

The primary sections of the States Grants Act 1965 (section 1) establish the act's short title and its commencement on the date of Royal Assent (section 2). This act repeals the States Grants Act 1959 (section 3), and clarifies that states are not entitled to grants under the repealed act for the financial year that started on 1 July 1965 (section 3(2)). Advances made under the repealed act for that year are deemed to be advances made under section 8 of the 1965 Act (section 3(3)). The act provides an interpretation of terms such as "year" and "average wages per person employed" (section 4). The act imposes several obligations on the Commonwealth Government, including the payment of grants to each state (section 5). The amount of the grant is calculated based on population changes and average wages (section 5(1)), with specific provisions for the State of Queensland (section 5(3)) and an increase for the State of Victoria (section 5(4)). The Commonwealth Statistician is responsible for making all necessary statistical and mathematical calculations (section 6), with deadlines for population determinations and wage ascertainments (section 6(2)). The Commonwealth Government must also consult with state governments to review and potentially revise the act's provisions (section 7). The Treasurer is authorised to make monthly or other advances to states as part of the financial assistance (section 8), with payments to be made from the Consolidated Revenue Fund (section 9). Breaches of the act may have civil or criminal consequences, though the act does not explicitly detail these. Penalties for breaches would typically be determined by other relevant legislation, such as the Crimes Act 1914, and could include fines or imprisonment, depending on the nature and severity of the breach. It is important for those governed by the act to ensure compliance to avoid any potential penalties.

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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.