States Grants (General Revenue) Act 1985

Legislation au C2004A03195 Not in force Act

Select Document

No. 156 of 1985

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1. Short title

2. Commencement

3. Interpretation

4. Determination of population of a State

PART II—FINANCIAL ASSISTANCE GRANTS

5. Interpretation

6. Financial assistance grants

PART III—HEALTH GRANTS

7. Interpretation

8. Health grants

PART IV—SPECIAL REVENUE ASSISTANCE GRANTS TO CERTAIN STATES

9. Interpretation

10. Special revenue assistance grants

PART V—MISCELLANEOUS

11. Reduction of grants for 1985-86 to take account of certain advance payments

12. Advance payments to States for 1988-89

13. Appropriation

14. Advance payments

15. Treasurer may fix amounts, and times of payments, of financial assistance

16. Determinations to be presumed to be correct

17. Regulations

18. Repeals

States Grants (General Revenue) Act 1985

No. 156 of 1985

An Act to provide for grants to the States

[Assented to 5 December 1985]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the States Grants (General Revenue) Act 1985.

Commencement

2. This Act shall come into operation on a day to be fixed by Proclamation.

Interpretation

3. (1) In this Act, unless the contrary intention appears—

“index factor”, in relation to a year, means the factor ascertained by dividing the sum of—

(a) the index number in relation to the March quarter in that year; and

(b) the index numbers in relation to the 3 quarters that immediately preceded that quarter,

by the sum of—

(d) the index numbers in relation to the 3 quarters that immediately preceded that last-mentioned quarter;

“index number”, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 6 State capital cities, published by the Statistician in respect of that quarter;

“Statistician” means the Australian Statistician;

“the 1985-86 year” means the year that commenced on 1 July 1985;

“the 1986-87 year” means the year commencing on 1 July 1986;

“the 1987-88 year” means the year commencing on 1 July 1987;

“year” means a financial year;

“year to which this Act applies” means the 1985-86 year and each of the next 2 succeeding years.

(2) Subject to sub-section (3), if at any time the Statistician publishes an index number in respect of a quarter in substitution for an index number previously published by the Statistician in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this Act.

(3) If at any time the Statistician changes the reference base for the Consumer Price Index, then, for the purposes of the application of this Act, regard shall be had only to index numbers published in terms of the new reference base.

Determination of population of a State

4. (1) Subject to sub-section (3), a reference in this Act to the estimated population of a State on 31 December in a specified year is a reference to the population of the State on that date as determined by the Statistician within the period specified in sub-section (2).

(2) The determination by the Statistician for the purposes of sub-section (1) of the estimated population of a State on 31 December in a specified year shall be made after that date and before 10 June next following that date.

(3) The Statistician, in making a determination under this section of the estimated population of a State, shall, where practicable, consult with the official Statistician of the State and shall have regard to the latest statistics in relation to population available to the Statistician on the day on which the determination is made.

PART II—FINANCIAL ASSISTANCE GRANTS

Interpretation

5. In this Part—

“adjusted population figure”, in relation to a State, in relation to a year to which this Act applies, means—

(a) in the case of a State other than Victoria—the estimated population of the State on 31 December in that year multiplied by the adjustment factor in relation to that State; and

(b) in the case of Victoria—the estimated population of Victoria on 31 December in that year;

“adjusted total population”, in relation to a year to which this Act applies, means the sum of the adjusted population figures in relation to all of the States in relation to that year;

“adjustment factor” means—

(a) in relation to New South Wales—1.008;

(b) in relation to Queensland—1.416;

(d) in relation to South Australia—1.397; and

(e) in relation to Tasmania—1.605.

Financial assistance grants

6. (1) Each State is entitled to the payment by way of financial assistance, in relation to the 1985-86 year, of a financial assistance grant calculated in accordance with the formula , where—

A is $9,058,428,568;

B is the index factor in relation to that year;

C is the adjusted population figure in relation to that State in relation to that year; and

D is the adjusted total population in relation to that year.

(2) Each State is entitled to the payment by way of financial assistance, in relation to each of the following years, namely, the 1986-87 year and the 1987-88 year, of a financial assistance grant calculated in accordance with the formula , where—

A is 1.02;

B is the sum of the financial assistance grants that are, or would but for section 11 be, payable to the States under this section in relation to the year immediately preceding the year concerned;

C is the index factor in relation to that year;

D is the adjusted population figure in relation to that State in relation to that year; and

E is the adjusted total population in relation to that year.

PART III—HEALTH GRANTS

Interpretation

7. In this Part—

“adjusted population figure”, in relation to a State, in relation to a year to which this Act applies, means—

(a) in the case of a State other than Victoria—the estimated population of the State on 31 December in that year multiplied by the adjustment factor in relation to that State; and

(b) in the case of Victoria—the estimated population of Victoria on 31 December in that year;

“adjusted total population”, in relation to a year to which this Act applies, means the sum of the adjusted population figures in relation to all of the States in relation to that year;

“adjustment factor” means—

(a) in relation to New South Wales—1.14148;

(b) in relation to Queensland—0.49352;

(d) in relation to South Australia—1.59883; and

(e) in relation to Tasmania—1.59699.

Health grants

8. (1) Each State is entitled to the payment by way of financial assistance, in relation to the 1985-86 year, of a health grant calculated in accordance with the formula , where—

A is $1,373,626,098;

B is the index factor in relation to that year;

C is the adjusted population figure in relation to that State in relation to that year; and

D is the adjusted total population in relation to that year.

(2) Each State is entitled to the payment by way of financial assistance, in relation to each of the following years, namely, the 1986-87 year and the 1987-88 year, of a health grant calculated in accordance with the formula , where—

A is 1.02;

B is the sum of the health grants that are, or would but for section 11 be, payable to the States under this section in relation to the year immediately preceding the year concerned;

C is the index factor in relation to that year;

D is the adjusted population figure in relation to that State in relation to that year; and

E is the adjusted total population in relation to that year.

PART IV—SPECIAL REVENUE ASSISTANCE GRANTS TO CERTAIN STATES

Interpretation

9. In this Part—

“adjusted population figure”, in relation to a State in relation to a year to which this Act applies, means—

(a) in the case of a State other than Victoria—the estimated population of the State on 31 December in that year multiplied by the adjustment factor in relation to that State; and

(b) in the case of Victoria—the estimated population of Victoria on 31 December in that year;

“adjusted total population”, in relation to a year to which this Act applies, means the sum of the adjusted population figures in relation to all of the States in relation to that year;

“adjustment factor” means—

(a) in relation to New South Wales—1.008;

(b) in relation to Queensland—1.420;

(d) in relation to South Australia—1.480; and

(e) in relation to Tasmania—1.695.

Special revenue assistance grants

10. (1) South Australia and Tasmania are each entitled to the payment by way of financial assistance, in relation to the 1985-86 year, of a special revenue assistance grant calculated in accordance with the formula , where—

A is $9,058,428,568;

B is the index factor in relation to that year;

C is the adjusted population figure in relation to the State concerned in relation to that year;

D is the adjusted total population in relation to that year; and

E is the financial assistance grant that is, or would but for section 11 be, payable to that State under section 6 in relation to that year.

(2) South Australia and Tasmania are each entitled to the payment by way of financial assistance, in relation to the 1986-87 year, of a special revenue assistance grant equal to one-half of the special revenue assistance grant that is, or would but for section 11 be, payable to that State under sub-section (1) of this section in relation to the 1985-86 year.

PART V—MISCELLANEOUS

Reduction of grants for 1985-86 to take account of certain advance payments

11. The sum of the amounts that would, but for this section, be payable to a State under this Act in relation to the 1985-86 year shall be reduced by an amount equal to the sum of any amounts paid to the State under section 23 of the repealed States (Tax Sharing and Health Grants) Act 1981.

Advance payments to States for 1988-89

12. The Treasurer may, during the period of 6 months commencing on 1 July 1988, make payments to a State of amounts not exceeding in the aggregate one-half of the sum of the amounts payable to the State under this Act in relation to the 1987-88 year.

Appropriation

13. Payments under this Act shall be made out of the Consolidated Revenue Fund, which is appropriated accordingly.

Advance payments

14. The Treasurer may make advances to a State of portions of the amount or amounts to which it appears to the Treasurer the State will be entitled under this Act in relation to a year.

Treasurer may fix amounts, and times of payments, of financial assistance

15. Financial assistance payable to a State under this Act shall be paid in such amounts, and at such times, as the Treasurer determines in writing.

Determinations to be presumed to be correct

16. A determination made by the Statistician under section 4 shall, for the purposes of this Act, be conclusively presumed to be correct.

Regulations

17. The Governor-General may make regulations, not inconsistent with this Act, prescribing matters necessary or convenient to be prescribed for carrying out or giving effect to this Act.

Repeals

18. The following Acts are repealed:

States (Tax Sharing and Health Grants) Act 1981

States (Tax Sharing and Health Grants) Amendment Act 1982

States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1982

States (Tax Sharing and Health Grants) Amendment Act 1983

States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983

States (Tax Sharing and Health Grants) Amendment Act 1984.

[Minister’s second reading speech made in—

House of Representatives on 11 September 1985

Senate on 26 November 1985]

Overview

The States Grants (General Revenue) Act 1985, enacted by the Commonwealth Parliament, was introduced to provide for financial assistance grants to the Australian states. This Act was designed to replace the former States (Tax Sharing and Health Grants) Act 1981 and its subsequent amendments, consolidating the legislative framework for financial assistance to the states. The primary objective of the Act is to ensure a structured and equitable distribution of funds to the states based on population and other specified indices, thereby supporting the financial stability and service delivery capabilities of the states. The Act facilitates the provision of both general revenue assistance and specific health grants, underpinning the financial autonomy and operational effectiveness of state governments in delivering public services.

Scope and Application

The States Grants (General Revenue) Act 1985 applies to the Commonwealth of Australia, with specific provisions for the distribution of financial assistance grants to each of the States. It outlines the calculation of these grants based on factors such as population and index numbers, providing a formula for determining the amount each State is entitled to receive. The Act is designed to support the financial needs of the States by offering general revenue grants, health grants, and special revenue assistance grants to certain States, while also detailing the adjustment factors applicable to each State. The Act's jurisdictional reach extends to the entire Commonwealth, with provisions for the Treasurer to make determinations regarding the amounts and timing of payments. While the Act itself provides the primary framework for grants, the Governor-General may also make regulations to facilitate the implementation of the Act. Notably, the Act repeals several earlier Acts related to States' tax sharing and health grants, consolidating the legislative framework for financial assistance to the States under this Act.

Key Provisions

The States Grants (General Revenue) Act 1985 (sections 5, 6, 7, 8, and 10) sets out the framework for financial assistance grants to the Australian states. Specifically, it provides for financial assistance grants (section 6), health grants (section 8), and special revenue assistance grants to South Australia and Tasmania (section 10). These grants are calculated based on various factors including population estimates, index numbers, and adjustment factors unique to each state. For instance, financial assistance grants are determined by a formula that incorporates a base amount, an index factor, and adjusted population figures relative to the total population (section 6). Similarly, health grants follow a formula involving a base amount, an index factor, and adjusted population figures (section 8). Special revenue assistance grants for South Australia and Tasmania are calculated using a formula that also includes the financial assistance grant amount (section 10). The Act imposes certain obligations on the Australian states and the Commonwealth government. The states must comply with the formulae and factors prescribed in the Act to be eligible for the grants. The Commonwealth, through the Treasurer, is responsible for determining the amounts and timing of financial assistance payments (section 15), making advance payments if necessary (section 14), and appropriating funds from the Consolidated Revenue Fund for these payments (section 13). Determinations made by the Statistician regarding state populations are conclusively presumed to be correct for the purposes of the Act (section 16). Breaches of the obligations under this Act can result in various consequences. While the Act does not explicitly state penalties for non-compliance, failure to adhere to the prescribed formulae and factors could potentially lead to disputes over the eligibility and amounts of grants. Additionally, if the Treasurer does not appropriately appropriate funds or make payments as determined, this could be seen as a breach of the Act's requirements, potentially leading to legal challenges or administrative actions. However, the Act itself does not specify particular criminal or civil penalties for such breaches.

Area of Law: Administrative Law; Finance & Banking Law
Instrument: Act
Concepts: Definitions & Interpretation; Commencement Provisions; Regulatory Standards; Reporting & Disclosure Obligations; Enforcement Powers; Prohibited Conduct

Interactions

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.

Legislation content

Overview

Scope and Application

Key Provisions

Legal classification tags

Interactions

Authorises

All Versions