STATES GRANTS ACT 1975
No. 112 of 1975
An Act to amend the States Grants Act 1973-1974.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—
Short title and citation.
1. (1) This Act may be cited as the States Grants Act 1975.
(2) The States Grants Act 1973-1974 is in this Act referred to as the Principal Act.
(3) The Principal Act, as amended by this Act, may be cited as the States Grants Act 1973-1975.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Grants to States.
3. Section 6 of the Principal Act is amended—
(a) by omitting from sub-section (1) the words “sub-sections (3) and (4) and to sections 6a and 7” and substituting the words “this section and section 7”; and
(b) by adding the following sub-sections at the end thereof:—
“(5) For the purpose of ascertaining the amount of the grant to be paid under this section to South Australia during the year commencing on 1 July 1975 and during each succeeding year, the amount of the grant paid to that State under this section during the year that commenced on 1 July 1974 shall be deemed to be an amount equal to the sum of the amount so paid and $21,000,000.
“(6) For the purpose of ascertaining the amount of the grant to be paid under this section to Western Australia during the year commencing on 1 July 1975 and during each succeeding year, the amount of the grant paid to that State under this section during the year that commenced on 1 July 1974 shall be deemed to be an amount equal to the sum of the amount so paid and $5,000,000.
“(7) For the purpose of ascertaining the amount of the grant to be paid under this section to Tasmania during the year commencing on 1 July 1975 and during each succeeding year, the amount of the grant paid to that State under this section during the year that commenced on 1 July 1974 shall be deemed to be an amount equal to the sum of the amount so paid and $4,300,000.
“(8) For the purpose of ascertaining the amount of the grant to be paid under this section to a State during the year commencing on 1 July 1976 and during each succeeding year, this section has effect as if the reference in paragraph (1)(c) to 1.8 per centum were a reference to 3 per centum.
4. Sections 6a, 7, 8 and 9 of the Principal Act are repealed and the following section substituted:—
Additional grants to States.
“7. (1) In addition to the grants payable to the States under section 6 during the year commencing on 1 July 1975, there is payable to each of the States during that year an amount that bears to $220,000,000 the same proportion as the sum of the amounts that are payable to that State during that year under that section bears to the sum of the amounts that are payable to all the States during that year under that section.
“(2) For the purpose of ascertaining the amount of the grant to be paid to a State under section 6 during the year commencing on 1 July 1976.and during each succeeding year, the amount of the grant paid to that State under that section during the year that commenced on 1 July 1975 shall be deemed to be an amount equal to the sum of the amount so paid to that State and the amount paid to that State under sub-section (1) of this section.”.
Review of grants.
5. Section 11 of the Principal Act is amended by omitting from sub-section (1) the words “a year subsequent to the year ending on 30th June, 1975,” and substituting the words “a year subsequent to the year ending on 30 June 1980”.
Overview
The States Grants Act 1975 was enacted by the Commonwealth of Australia to amend the States Grants Act 1973-1974, addressing the need for adjustments in the distribution of financial assistance to the states. The Act was passed by the Parliament of Australia and received Royal Assent, with the intent to revise the formula and amount of grants provided to states for general purposes, reflecting changes in economic conditions and the need to support state budgets more effectively. The policy objective of the Act is to ensure equitable financial support to the states, taking into account population growth and other relevant factors impacting state revenue requirements.
The 1975 Act made several significant amendments to the Principal Act, including changes to the formula for calculating grants, the introduction of additional grants for specific states for a transitional period, and the alteration of the review cycle for the grants. This legislation aimed to provide a more stable and predictable funding mechanism for the states, addressing the identified gaps in the previous framework by extending the period before the next review of the grants.
Scope and Application
The States Grants Act 1975 amends the States Grants Act 1973-1974 to adjust the financial allocations and grant formulas for the distribution of Commonwealth funds to the various states. This Act applies to all states within the Commonwealth of Australia, specifically targeting the distribution of grants as outlined in the amended sections. Notably, it provides for additional grants to South Australia, Western Australia, and Tasmania, and adjusts the percentage rate for calculating future grants. The Act’s provisions extend to modifying the review process for these grants, delaying the review until after the year ending on 30 June 1980. The Act does not explicitly state exclusions or thresholds, but the financial adjustments and provisions imply a targeted approach to specific states based on their historical grant amounts and future needs. The Act’s application is confined to the Commonwealth jurisdiction, impacting how federal funds are allocated across the states.
Key Provisions
The States Grants Act 1975 makes several amendments to the States Grants Act 1973-1974. The most significant changes include adjustments to the grant amounts for certain states and the introduction of additional grants for all states. Section 3 of the Act amends section 6 of the Principal Act to increase the grants for South Australia, Western Australia, and Tasmania from 1 July 1975 onwards by specified amounts. Section 4 repeals and replaces sections 6a, 7, 8, and 9 of the Principal Act with a new section 7, which provides additional grants to all states for the year commencing on 1 July 1975. The amount of these additional grants is calculated based on a proportion of $220,000,000. Section 5 extends the period for reviewing grants from one year after 30 June 1975 to one year after 30 June 1980.
The Act imposes several obligations on the parties it governs. The most significant of these is the requirement to pay the amended grants to the specified states from 1 July 1975 onwards. The Commonwealth must ensure that the increased grants for South Australia, Western Australia, and Tasmania are paid as per the new provisions in section 3. Additionally, the Commonwealth must provide the additional grants to all states for the year commencing on 1 July 1975, as stipulated in the new section 7. The states, in turn, must comply with the provisions regarding the calculation of their respective grants and ensure they meet any conditions or requirements attached to the grants.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Act for breaches of its provisions. However, failure to comply with the Act's requirements to pay the amended grants as specified could lead to legal challenges or disputes between the Commonwealth and the affected states. While the Act itself does not prescribe penalties for non-compliance, any resulting legal action or disputes could have significant financial and reputational consequences for the parties involved. The exact outcomes would depend on the specific circumstances and the interpretation of the Act by the courts.