States Grants (Capital Assistance) Act 1980
No. 149 of 1980
An Act to grant financial assistance to the States in connection with expenditure of a capital nature and to authorize the borrowing of certain moneys by the Commonwealth
[Assented to 19 September 1980]
BE IT ENACTED by the Queen, and 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 (Capital Assistance) Act 1980.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Grants to States during the year 1980-81
3. (1) There is payable to a State specified in Column 1 of the Schedule, during the year ending on 30 June 1981, 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 1979.
(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 1981-82
4. The Treasurer may, during the period of 6 months commencing on 1 July 1981, 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 1981, 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) $653,625,000; 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 1979 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 1979, 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 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 1979.
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
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............................... | $ 140,854,000 | $ 70,427,000 |
Victoria...................................... | 109,473,000 | 54,736,500 |
Queensland................................... | 57,777,000 | 28,888,500 |
South Australia................................. | 56,787,000 | 28,393,500 |
Western Australia............................... | 40,320,000 | 20,160,000 |
Tasmania..................................... | 30,539,000 | 15,269,500 |
| 435,750,000 | 217,875,000 |
Overview
The States Grants (Capital Assistance) Act 1980 was enacted by the Parliament of Australia to provide financial assistance to the states for capital expenditure. The Act was introduced to address the need for financial support for state-level infrastructure and development projects, ensuring that the states have the necessary funds to undertake significant capital works that benefit the broader community. The policy objective of the Act is to provide financial assistance to the states for capital expenditure, thereby supporting the development of essential infrastructure and facilitating economic growth across the nation.
Under this Act, the Commonwealth Government makes payments to the states for specific capital projects, as outlined in the Schedule to the Act. The Act also authorises the borrowing of funds to meet these financial obligations, ensuring that the necessary capital is available for state-level projects. Payments are to be made from the Consolidated Revenue Fund or the Loan Fund, with reimbursement provisions to maintain the integrity of the Commonwealth’s financial records. This legislative framework supports the federal financial relationship by enabling the Commonwealth to assist the states in undertaking critical capital projects that contribute to the overall economic and social development of the nation.
Scope and Application
The States Grants (Capital Assistance) Act 1980 is a Commonwealth statute that provides financial assistance to the various Australian states for capital expenditure purposes. This Act applies to the states specified in the Schedule, namely New South Wales, Victoria, Queensland, South Australia, Western Australia, and Tasmania. The Act authorises the Commonwealth Treasurer to make payments to these states during the financial year ending 30 June 1981, and also allows for advance payments to be made for the 1981-82 financial year. Payments are to be made out of the Consolidated Revenue Fund or the Loan Fund, and the Act provides authority for the Commonwealth to borrow the necessary funds. The Act is limited to the Commonwealth of Australia and does not extend beyond its jurisdiction. There are no exclusions, exemptions, or thresholds specified in the Act, and its application is not extended or restricted through subordinate instruments. The Act is limited to the specific amounts specified in the Schedule and does not apply to any other persons, entities, industries, conduct, or transactions.
Key Provisions
The States Grants (Capital Assistance) Act 1980, as referenced in section 1, is an Act designed to provide financial assistance to the states for capital expenditure. Section 3 specifies that during the year ending on 30 June 1981, certain states will receive grants specified in the Schedule, less any amounts already paid under section 4 of the States Grants (Capital Assistance) Act 1979. The Treasurer, as mentioned in section 3(2), is responsible for determining the timing and amounts of these payments. Additionally, section 4 allows the Treasurer to make advance payments during the six-month period starting from 1 July 1981, for the same purpose of capital expenditure assistance. These payments must not exceed the aggregate amounts listed in the Schedule.
The Act imposes several obligations on the parties involved. The Treasurer, under section 3(2), must approve the amounts and timing of the payments to the states. Furthermore, the Treasurer, as outlined in section 6, is authorised to borrow moneys not exceeding the specified aggregate sum, subject to the provisions of the Commonwealth Inscribed Stock Act 1911 or the Treasury Bills Act. The borrowed funds, according to section 7, must be used for specified purposes, including the payment of grants to states and reimbursement to the Consolidated Revenue Fund. The Minister of State for Finance, as detailed in section 8, can authorise reimbursements from the Loan Fund to the Consolidated Revenue Fund for amounts already paid out for the purposes of this Act or under section 4 of the 1979 Act. Section 9 appropriates the Consolidated Revenue Fund and the Loan Fund for the purposes of this Act.
The Act also establishes consequences for non-compliance. Although the Act does not explicitly state offences or penalties, the obligations imposed on the Treasurer and the Minister of State for Finance are critical. Failure to adhere to the specified processes and timelines could result in legal repercussions, including potential civil or criminal liability under other applicable laws. For instance, misapplication of funds or failure to follow the prescribed borrowing and payment procedures could lead to penalties under the relevant financial management legislation. The exact penalties would depend on the specific breach and the applicable laws at the time of the offence.