STATES GRANTS (CAPITAL ASSISTANCE)
ACT 1974
No. 106 of 1974
An Act to grant Financial Assistance to the States in connexion with Expenditure of a Capital Nature and to Authorize the Borrowing of Certain Moneys by the Australian Government.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—
Short title.
1. This Act may be cited as the States Grants (Capital Assistance) Act 1974.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Grants to States during year 1974-75.
3. (1) There is payable to a State specified in the first column of the Schedule, during the year ending on 30 June 1975, for the purpose of financial assistance in connexion with expenditure of a capital nature, the amount specified in the second column of that Schedule opposite to the name of that State, less the sum of any payments made to that State under section 4 of the States Grants (Capital Assistance) Act 1973.
(2) Payments for the purposes of this section shall be made in such amounts and at such times as the Treasurer determines.
Advance payments to States for 1975-76.
4. The Treasurer may, during the period of 6 months commencing on 1 July 1975, make payments to a State specified in the first column of the Schedule, for the purpose of financial assistance in connexion with expenditure of a capital nature, of amounts not exceeding in the aggregate the amount specified in the third column of that Schedule opposite to the name of that State.
Payments to States to be made out of Consolidated Revenue Fund or Loan Fund.
5. Payments to a State for the purposes of this Act may be made out of the Consolidated Revenue Fund or the Loan Fund.
Authority to borrow.
6. (1) Subject to sub-section (2), the Treasurer may, during the period commencing on the date of commencement of this Act and ending on 31 December 1975, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911-1973, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the aggregate $489,927,000.
(2) The aggregate amount of moneys that may be borrowed under sub-section (1) is reduced by the sum of the moneys (if any) borrowed by the Treasurer in accordance with sub-section 6(1) of the States Grants (Capital Assistance) Act 1973 for the purpose of making payments to the States in accordance with section 4 of that Act.
Application of moneys borrowed.
7. Moneys borrowed under sub-section 6(1) shall be issued and applied only for the expenses of borrowing, for the purpose of making payments to the States in accordance with this Act and for the purpose of making payments to the Consolidated Revenue Fund in accordance with section 8.
Reimbursement of Consolidated Revenue Fund from Loan Fund.
8. (1) Where an amount has been paid out of the Consolidated Revenue Fund under this Act or under section 4 of the States Grants (Capital Assistance) Act 1973, the Treasurer may authorize the payment to that Fund, out of the Loan Fund, of an amount not exceeding the amount so paid.
(2) In any statement of the receipts and expenditure, or of the expenditure, of the Consolidated Revenue Fund prepared by the Treasurer under section 49 or section 50 of the Audit Act 1901-1973, amounts paid to the Consolidated Revenue Fund under sub-section (1) of this section shall not be shown as receipts of that Fund but shall be shown as having reduced the total of the amounts expended from that Fund under this Act and under section 4 of the States Grants (Capital Assistance) Act 1973.
Appropriation.
9. The Consolidated Revenue Fund and the Loan Fund are appropriated as necessary for the purposes of this Act.
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SCHEDULE Sections 3 and 4
First Column | Second Column | Third Column |
State | Amount of
grant under
sub-section 3(1) | Maximum
aggregate
amount of
payments under section 4 |
| $ | $ |
New South Wales............................. | 101,337,000 | 50,668,500 |
Victoria................................... | 82,505,000 | 41,252,500 |
Queensland................................. | 43,544,000 | 21,772,000 |
South Australia.............................. | 44,314,000 | 22,157,000 |
Western Australia............................. | 30,387,000 | 15,193,500 |
Tasmania.................................. | 24,531,000 | 12,265,500 |
| 326,618,000 | 163,309,000 |
Overview
The States Grants (Capital Assistance) Act 1974 was enacted by the Parliament of Australia to provide financial assistance to the states for capital expenditure, thereby addressing the need for coordinated financial support to facilitate significant infrastructure and development projects across the nation. This Act was designed to ensure that states have the necessary funds to undertake critical capital projects that contribute to the economic and social development of the country. The policy objective of the Act is to assist states in meeting their capital expenditure requirements through grants and to allow the Commonwealth to borrow the necessary funds to meet these obligations.
The Act authorises the Treasurer to make payments to the states from either the Consolidated Revenue Fund or the Loan Fund, and it allows for the borrowing of specified amounts to cover these payments. It also includes provisions for the reimbursement of the Consolidated Revenue Fund from the Loan Fund and appropriates the funds necessary for the purposes of the Act. This legislation underscores the federal government's role in supporting state-level infrastructure projects, ensuring a balanced and cohesive approach to national development.
Scope and Application
The States Grants (Capital Assistance) Act 1974 applies to the Commonwealth of Australia, authorising the financial assistance to be provided to the states for capital expenditure during the financial year 1974-75. This Act allows the Treasurer to make payments to specified states for capital assistance, with amounts specified in the Schedule to the Act. Additionally, the Treasurer is authorised to make advance payments for the 1975-76 financial year, subject to certain limits. The Act also permits the Treasurer to borrow moneys to facilitate these payments, up to a specified aggregate amount, and mandates the application of borrowed funds strictly for the purposes outlined within the Act. The Act applies nationally within the Commonwealth of Australia, with payments being made out of the Consolidated Revenue Fund or the Loan Fund. The Act does not specify exclusions, exemptions, or thresholds, but its application and detailed implementation may be subject to further regulation through subordinate instruments.
Key Provisions
The States Grants (Capital Assistance) Act 1974 (hereafter referred to as the "Act") primarily focuses on providing financial assistance to Australian states for capital expenditures. Section 3(1) specifies the grants payable to the states for the 1974-75 financial year, with the amounts detailed in the schedule, less any payments made under a previous act. Payments are to be made at the Treasurer's discretion as per Section 3(2). Additionally, Section 4 authorises the Treasurer to make advance payments for the 1975-76 financial year, up to the amounts listed in the schedule. These payments are to be made within six months starting from 1 July 1975. Funds for these payments can be sourced from either the Consolidated Revenue Fund or the Loan Fund, as outlined in Section 5.
The Act imposes several obligations on the parties involved. The Treasurer is responsible for determining the timing and amounts of payments to the states as per Section 3(2). Furthermore, the Treasurer is authorised to borrow moneys under Section 6(1), subject to certain conditions and limitations. The borrowed funds must be applied to specific expenses, including payments to states and the Consolidated Revenue Fund, as stipulated in Section 7. In cases where payments are made from the Consolidated Revenue Fund, the Treasurer may reimburse this fund from the Loan Fund, as detailed in Section 8. This reimbursement does not count as revenue for the Consolidated Revenue Fund in financial statements. Finally, Section 9 appropriates the Consolidated Revenue Fund and the Loan Fund for the purposes of the Act.
Failure to comply with the provisions of the Act may lead to various consequences. While the Act does not explicitly outline specific offences or penalties, breaches of financial management and appropriation laws could potentially lead to civil or criminal liabilities. For instance, misuse of public funds or improper application of borrowed moneys might result in legal action. Additionally, the Act's provisions are subject to broader financial regulations and oversight, which may impose further penalties or consequences for non-compliance. However, the Act itself does not provide detailed information on maximum penalties.