STATE GRANTS (CAPITAL ASSISTANCE) ACT (No. 2) 1976
No. 104 of 1976
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 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 (No. 2) 1976.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Grants to States during year 1976-77.
3. (1) There is payable to a State specified in Column 1 of the Schedule, during the year ending on 30 June 1977, for the purpose of financial assistance in connexion with expenditure of a capital nature, the amount specified in Column 2 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 1976.
(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 1977-78.
4. The Treasurer may, during the period of 6 months commencing on 1 July 1977, make payments to a State specified in Column 1 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 Column 3 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 1977, 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 $678,000,000.
(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 1976 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 1976, 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 prepared by the Treasurer under section 49 or 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 1976.
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................. | 143,958,000 | 71,979,000 |
Victoria........................ | 114,354,000 | 57,177,000 |
Queensland...................... | 60,352,000 | 30,176,000 |
South Australia................... | 59,318,000 | 29,659,000 |
Western Australia................. | 42,117,000 | 21,058,500 |
Tasmania....................... | 31,901,000 | 15,950,500 |
| 452,000,000 | 226,000,000 |
Overview
The States Grants (Capital Assistance) Act (No. 2) 1976 was enacted by the Commonwealth Parliament to provide financial assistance to Australian states for capital expenditure during the fiscal year ending 30 June 1977. This Act supplements the States Grants (Capital Assistance) Act 1976 by offering additional grants to the states to support their capital projects. The policy objective is to ensure that states have the necessary funds to undertake significant infrastructure and development projects, thereby fostering economic growth and development across the nation. The Act allows for payments to be made from the Consolidated Revenue Fund or the Loan Fund and authorises the Commonwealth to borrow up to a specified amount to meet these obligations.
The Act also provides for advance payments to states for the following financial year, 1977-78, and allows the Treasurer to reimburse the Consolidated Revenue Fund from the Loan Fund for any amounts disbursed under this Act or the previous Act. This legislative framework aims to facilitate the timely and efficient distribution of capital assistance to the states, supporting their financial requirements for significant capital projects.
Scope and Application
The States Grants (Capital Assistance) Act (No. 2) 1976 applies to the Commonwealth government and the six Australian states as designated in the Schedule. The Act provides for the distribution of financial capital assistance grants to the states to support capital expenditure during the 1976-77 financial year, with specific amounts outlined in the Schedule. It authorises the Treasurer to make advance payments to states for the 1977-78 financial year up to the amounts specified in the Schedule, which are to be drawn from the Consolidated Revenue Fund or the Loan Fund. The Act also empowers the Treasurer to borrow funds, up to a specified maximum, for the purpose of making these payments and applies to the Commonwealth jurisdiction. There are no stated exclusions, exemptions, or thresholds in the Act itself, though the application of the borrowing and payment provisions may be subject to further detail in subordinate instruments.
Key Provisions
The States Grants (Capital Assistance) Act (No. 2) 1976 (the Act) establishes a framework for the distribution of financial assistance to the Australian states for capital expenditure purposes, and authorises the borrowing of funds by the Commonwealth for this purpose. Section 3(1) of the Act specifies that a grant is payable to each state listed in the Schedule for the year ending 30 June 1977, with the amount specified in Column 2 of the Schedule, less any payments made under section 4 of the States Grants (Capital Assistance) Act 1976. The payments under this section are subject to approval by the Treasurer, as outlined in section 3(2). Section 4 allows the Treasurer to make advance payments to states during the six-month period starting 1 July 1977, with the aggregate amount not exceeding that specified in Column 3 of the Schedule.
The Act imposes specific obligations on the Commonwealth government, primarily through the Treasurer. Section 5 provides that payments to states under the Act may be made from either the Consolidated Revenue Fund or the Loan Fund, as determined by the Treasurer. Section 6(1) authorises the Treasurer to borrow funds, up to a maximum of $678,000,000, during the period from the Act's commencement until 31 December 1977. This borrowing is subject to the conditions specified in section 6(2), which reduces the allowable borrowing amount by any funds borrowed under a previous Act for similar purposes. Section 8 allows for the reimbursement of the Consolidated Revenue Fund from the Loan Fund where payments have been made under this Act or under the States Grants (Capital Assistance) Act 1976.
Breach of the Act may lead to various civil and criminal consequences, although the Act itself does not explicitly state penalties for non-compliance. The Act is structured around the financial administration and distribution of funds to states, and any failures to meet the obligations outlined in the Act, such as improper disbursement of funds or unauthorised borrowing, could potentially lead to legal action under other relevant legislation, such as the Public Governance, Performance and Accountability Act 2013 (Cth). Non-compliance could also result in financial mismanagement charges under state and territory laws. However, the Act does not prescribe specific penalties or sanctions within its text, and any enforcement would likely be pursued through the courts or administrative tribunals under other applicable laws.