STATES GRANTS (CAPITAL ASSISTANCE)
ACT 1978
No. 153 of 1978
An Act to grant financial assistance to the States in connection with the expenditure of a capital nature and to authorize the borrowing of certain moneys by the Commonwealth.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
Short title
1. This Act may be cited as the States Grants (Capital Assistance) Act 1978.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Grants to States during year 1978-79
3. (1) There is payable to a State specified in Column 1 of the Schedule, during the year ending on 30 June 1979, for the purpose of financial assistance in connection with expenditure of a capital nature, the amount specified in Column 2 of the Schedule opposite to the name of that State, less the sum of any amounts paid to that State under section 4 of the States Grants (Capital Assistance) Act 1977.
(2) Payments for the purposes of this section shall be made in such amounts and at such times as the Treasurer approves.
Advance payments to States for 1979-80
4. The Treasurer may, during the period of 6 months commencing on 1 July 1979, make payments to a State specified in Column 1 of the Schedule, for the purpose of financial assistance in connection with expenditure of a capital nature, of amounts not exceeding in the aggregate the amount specified in Column 3 of the Schedule opposite to the name of that State.
Payments 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 1979, in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the aggregate the sum of—
(a) $716,899,500; and
(b) the expenses of borrowing.
(2) For the purposes of the application of sub-section (1), the amount specified in paragraph (1)(a) shall be taken to be reduced by the sum of any amounts borrowed by the Treasurer in accordance with sub-section 6(1) of the States Grants (Capital Assistance) Act 1977 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 1977, the Minister of State for Finance 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 prepared by the Minister of State for Finance under section 49 or 50 of the Audit Act 1901, 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 1977.
Appropriation
9. The Consolidated Revenue Fund and the Loan Fund are appropriated as necessary for the purposes of this Act.
SCHEDULE Sections 3 and 4
Column 1 | Column 2 | Column 3 |
State | Amount of grant under sub-section 3(1) | Maximum aggregate amount of payments under section 4 |
| $ | $ |
New South Wales | 154,489,000 | 77,244,500 |
Victoria | 120,071,000 | 60,035,500 |
Queensland | 63,370,000 | 31,685,000 |
South Australia | 62,284,000 | 31,142,000 |
Western Australia | 44,223,000 | 22,111,500 |
Tasmania | 33,496,000 | 16,748,000 |
| 477,933,000 | 238,966,500 |
Overview
The States Grants (Capital Assistance) Act 1978 was enacted by the Australian Parliament to address the need for financial assistance to the states for capital expenditure. This Act aimed to provide specific grants to the states for the year ending 30 June 1979, and authorised the Treasurer to make advance payments to states for the following financial year. Additionally, the Act allowed the Treasurer to borrow moneys necessary to meet these obligations, subject to the aggregate borrowing limit set out in the Act. The policy objective was to support state infrastructure projects by providing necessary capital funds, thus facilitating economic growth and development across Australia. Payments under the Act were to be made from either the Consolidated Revenue Fund or the Loan Fund, with provisions for reimbursement and appropriation as necessary.
Scope and Application
The States Grants (Capital Assistance) Act 1978 provides for the financial assistance to various States within Australia for capital expenditure purposes, with the Act applying to the States of New South Wales, Victoria, Queensland, South Australia, Western Australia, and Tasmania. The financial assistance is granted during the fiscal year ending on 30 June 1979 and potentially extends to an additional advance payment period from 1 July 1979 to 31 December 1979, as detailed in the attached schedule. The payments are made out of the Consolidated Revenue Fund or the Loan Fund, as approved by the Treasurer, and are subject to the appropriation of these funds as necessary for the purposes of the Act. The Act also authorises the Treasurer to borrow moneys up to a specified aggregate amount, with the borrowed funds to be applied only for the specified purposes outlined in the Act, including payments to the States and to the Consolidated Revenue Fund. The Act does not explicitly provide for any exclusions or exemptions but is subject to the broader constraints of the appropriations and the terms of borrowing specified within the Act and subordinate legislation.
Key Provisions
The States Grants (Capital Assistance) Act 1978 primarily focuses on the provision of financial assistance to Australian states for capital expenditure and the authorization of borrowing by the Commonwealth to facilitate these grants. Under section 3(1), the Act mandates that specific amounts of grants are to be paid to the states during the year ending on 30 June 1979, with the exact amounts detailed in the Schedule. These payments are to be made in amounts and at times approved by the Treasurer. Furthermore, section 4 allows the Treasurer to make advance payments to the states for the year 1979-80, up to certain limits specified in the Schedule. Payments under this Act can be sourced from either the Consolidated Revenue Fund or the Loan Fund, as stipulated in section 5.
The Act imposes obligations on the Commonwealth to disburse these grants and advance payments in accordance with the specified terms and financial limits. The Treasurer has the discretion to approve the timing and amounts of the payments under section 3(1), ensuring that the financial assistance is aligned with budgetary approvals and fiscal policies. Additionally, the Treasurer is authorized to borrow moneys under section 6 to meet the financial obligations of the Act, subject to the borrowing limits and conditions outlined. The moneys borrowed are to be applied strictly for the purposes of this Act, including making payments to the states and repaying the Consolidated Revenue Fund, as per section 7.
Section 6(1) also includes provisions for the maximum aggregate amount that can be borrowed, with a specified total of $716,899,500 plus borrowing expenses, subject to reductions for any amounts already borrowed under the States Grants (Capital Assistance) Act 1977. Failure to comply with the terms and conditions set out in the Act may result in civil or criminal consequences, although specific penalties are not detailed within the provided text. The Act emphasizes the accountability of the funds by stipulating that repayments to the Consolidated Revenue Fund from the Loan Fund are to be recorded in a specific manner in financial statements, as per section 8.