States Grants Act (No. 2) 1972

Legislation au C1972A00090 Not in force Act

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States Grants (No. 2)

No. 90 of 1972

An Act relating to the Grant of Financial Assistance to the States.

[Assented to 18 October 1972]

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

Short title and citation.

1.—(1.) This Act may be cited as the States Grants Act (No. 2) 1972.

(2.) The States Grants Act (No. 2) 1971, as amended by the States Grants Act 1972, is in this Act referred to as the Principal Act.

(3.) Section 1 of the States Grants Act 1972 is amended by omitting sub-section (3.).

(4.) The Principal Act, as amended by this Act, may be cited as the States Grants Act 19711972.

Commencement.

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

Grants to States.

3. Section 7 of the Principal Act is amended by adding at the end thereof the following sub-sections:—

(6.) The amount payable to a State under the preceding provisions of this section during the year that commenced on the first day of July, One thousand nine hundred and seventy-two, is increased by an amount that bears to One hundred and twelve million dollars the same proportion as the amount determined in accordance with the next succeeding sub-section in relation to that State bears to the sum of the amounts so determined in relation to each of the States.


(7.) The amount to be determined under this sub-section in relation to a State is the amount that would be the amount payable to that State in accordance with this section if all the sub-sections of this section after sub-section (2.) had not been enacted.

(8.) The amounts respectively payable to the State of New South Wales and the State of Victoria under the preceding provisions of this section during the year that commenced on the first day of July, One thousand nine hundred and seventy-two, are increased by an amount ascertained by multiplying Three dollars fifty cents by the number of persons included in the population of the State concerned on the thirty-first day of December in that year..

Additional grants to New South Wales and Victoria.

4. Section 8 of the Principal Act is repealed.

Additional grants to Western Australia.

5. Section 9 of the Principal Act is amended by omitting the figures 6,500,000 and inserting in their stead the figures 10,000,000.

 

Overview

The States Grants (No. 2) Act 1972 was enacted to provide financial assistance to the states of Australia, specifically addressing the need for increased funding to support various state services and projects. The Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia and received Royal Assent on 18 October 1972. Its primary objective is to amend the States Grants Act 1971–1972, enhancing the financial support provided to the states, particularly New South Wales and Victoria, to better enable them to undertake essential public services and infrastructure projects. This legislative effort was aimed at ensuring equitable distribution of federal financial resources to support state-level initiatives that contribute to the overall development and welfare of the nation.

Scope and Application

The States Grants Act (No. 2) 1972 is a Commonwealth legislation that amends the States Grants Act 1971–1972 to alter the financial assistance provided to the states. This Act applies to the states of Australia, specifically targeting New South Wales, Victoria, and Western Australia. It is geographically and jurisdictionally confined to the Commonwealth of Australia, providing a framework for federal financial support to the states. The Act introduces additional grants to New South Wales and Victoria based on their population, while also modifying the grant to Western Australia. Notably, the Act does not explicitly state any exclusions or thresholds, but its provisions are directed towards altering the amounts payable to specific states. The application and specifics of these grants can be further detailed through subordinate instruments, which may specify additional conditions or modifications to the grants.

Key Provisions

The States Grants (No. 2) Act 1972 (referred to as the "Act") amends the States Grants Act 1971-1972 by introducing new provisions concerning financial assistance granted to the states. Section 3 of the Act amends the Principal Act by adding new sub-sections (6, 7, and 8) that adjust the amount payable to each state based on certain criteria. Specifically, sub-section (6) adjusts the amount payable to each state during the fiscal year starting 1 July 1972, while sub-section (7) provides the formula for determining the amount payable. Sub-section (8) adjusts the amounts payable to New South Wales and Victoria based on the population count as of 31 December of that year. The Act imposes several obligations on the parties it governs. Firstly, it mandates that the amount of financial assistance payable to each state be recalculated according to the provisions outlined in sub-sections (6) and (8). Additionally, the Act specifies the exact amount of additional assistance to be granted to New South Wales and Victoria, as well as the increased amount for Western Australia as stipulated in sub-section (5). Breaches of the provisions set forth in the Act may lead to civil or criminal consequences, though the Act itself does not explicitly detail the specific penalties. Generally, non-compliance with financial assistance acts can result in legal actions or penalties as prescribed by related legislation or administrative procedures. The precise penalties would be determined according to the broader legal framework governing state financial assistance in Australia.

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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.