States Grants (General Revenue) Amendment Act 1987

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States Grants (General Revenue) Amendment Act 1987

No. 95 of 1987

 

An Act to amend the States Grants (General Revenue) Act 1985

[Assented to 5 November 1987]

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

Short title etc.

1. (1) This Act may be cited as the States Grants (General Revenue) Amendment Act 1987.

(2) The States Grants (General Revenue) Act 19851 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall be deemed to have come into operation on 1 July 1987.

Financial assistance grants

3. Section 6 of the Principal Act is amended:

(a) by omitting from subsection (2) “each of the following years, namely, the 1986-87 year and the 1987-88 year” and substituting “the 1986-87 year”;


(b) by omitting from subsection (2) “year immediately preceding the year concerned” and substituting “1985-86 year”;

(c) by omitting from subsection (2) “that year” (wherever occurring) and substituting “the 1986-87 year”; and

(d) by adding at the end the following subsection:

“(3) Each State is entitled to the payment by way of financial assistance, in relation to the 1987-88 year, of a financial assistance grant calculated in accordance with the formula:

where:

A is $11,756,084,984;

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

C is the adjusted total population in relation to that year.”.

Health grants

4. Section 8 of the Principal Act is amended:

(a) by omitting from subsection (2) “each of the following years, namely, the 1986-87 year and the 1987-88 year” and substituting “the 1986-87 year”;

(b) by omitting from subsection (2) “year immediately preceding the year concerned” and substituting “1985-86 year”;

(c) by omitting from subsection (2) “that year” (wherever occurring) and substituting “the 1986-87 year”; and

(d) by adding at the end the following subsection:

“(3) Each State is entitled to the payment by way of financial assistance, in relation to the 1987-88 year, of a health grant calculated in accordance with the formula:

where:

A is $1,782,700,501;

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

C is the adjusted total population in relation to that year.”.

5. Before section 11 of the Principal Act the following section is inserted in Part V:

State contribution to costs of higher education superannuation

“10a. (1) In this section:

‘higher education institution’ means an institution that is a university or college of advanced education for the purposes of the States Grants (Tertiary Education Assistance) Act 1984;


‘Minister’ means the Minister for Employment, Education and Training;

‘prescribed period’ means the period of 6 months commencing on 1 January 1988;

‘unfunded superannuation liabilities’, in relation to higher education institutions in a State, means unfunded superannuation liabilities under superannuation schemes conducted by that State.

“(2) Financial assistance to which a State is entitled under this Act in relation to the 1987-88 year is granted on the condition that the State will, on or before 31 May 1988, pay to the Commonwealth an amount representing the State’s share of the costs of any unfunded superannuation liabilities of higher education institutions in the State, being liabilities required to be discharged during the prescribed period.

“(3) The amount (if any) payable by a State to the Commonwealth is the amount determined by the Minister.

“(4) The amount to be determined under subsection (3) in relation to a State is the amount that equals the sum of:

(a) the amount calculated in accordance with the formula:

where:

A is the estimated total of the payments required to be made during the prescribed period in discharge of unfunded superannuation liabilities of higher education institutions in the State, being liabilities attributable to service before 1 January 1974; and

B is the fraction representing, as nearly as is practicable, the proportion of the recurrent costs of higher education in the State borne by the State in the period during which that service was being performed; and

(b) the amount by which the estimated total of the payments required to be made during the prescribed period in discharge of unfunded superannuation liabilities of higher education institutions in the State attributable to service on or after 1 January 1982 exceeds the amount that would be the estimated total of such payments if the benefits provided under superannuation schemes under which those liabilities arise were reduced to a level that could be financed by a long-term employer contribution at the rate of 14% of members’ salaries.

“(5) A determination by the Minister under subsection (3) shall be made not later than 31 March 1988.

“(6) A determination by the Minister under subsection (3) shall, for the purposes of this Act, be conclusively presumed to be correct.

“(7) If the Treasurer is satisfied that a State has failed to fulfil the condition specified in subsection (2), the Treasurer may reduce any payment due to the State under this Act in respect of the 1987-88 year by


an amount equal to the amount payable by the State to the Commonwealth and remaining unpaid.”.

 

NOTE

1. No. 156, 1985.

[Minister’s second reading speech made in—

House of Representatives on 15 September 1987

Senate on 22 October 1987]

Overview

The States Grants (General Revenue) Amendment Act 1987, enacted by the Parliament of Australia, serves to amend the States Grants (General Revenue) Act 1985. This amendment addresses the need to adjust the financial assistance and health grants provided to the states for the 1987-88 financial year, while also introducing a new condition concerning the contribution of states to the costs of unfunded superannuation liabilities of higher education institutions. The policy objective of the Act is to ensure a more accurate and fair allocation of financial assistance to states, considering population adjustments, and to establish a mechanism for states to contribute to the resolution of superannuation liabilities in higher education institutions. The Act aims to provide certainty and stability in the distribution of federal funds to the states, while also encouraging states to participate in addressing specific financial burdens within their higher education sectors. The Act reflects the legislative intent to refine the financial assistance framework, ensuring that grants are calculated based on the most recent and relevant data, and to introduce a condition for states to contribute to the resolution of superannuation liabilities, which had previously been unfunded. This amendment was necessary to address the evolving financial needs of the states and the specific fiscal challenges faced by higher education institutions.

Scope and Application

The States Grants (General Revenue) Amendment Act 1987 applies to the financial assistance provided to Australian states for the 1987-88 year, amending the provisions of the States Grants (General Revenue) Act 1985. This Act pertains specifically to financial assistance grants and health grants for states and is limited to the specified financial year. The Act outlines the criteria and formulas for calculating the financial assistance grants and health grants for each state, taking into account their adjusted population figures and the adjusted total population for the year. Furthermore, the Act imposes a condition on financial assistance whereby states must contribute to the costs of unfunded superannuation liabilities of higher education institutions within the state for the specified period. The Act has a national reach as it applies to all states within the Commonwealth of Australia. There are no stated exclusions or exemptions within the Act, although the application may be affected by any subordinate instruments issued under the Act.

Key Provisions

The States Grants (General Revenue) Amendment Act 1987 amends the States Grants (General Revenue) Act 1985, as the Principal Act, to adjust financial assistance grants and health grants for the 1987-88 financial year. Section 3(3) introduces a new formula for calculating financial assistance grants for the 1987-88 year, based on the adjusted population figure for each state and the adjusted total population. Similarly, Section 4(3) introduces a new formula for calculating health grants for the same year. A new section 10a is inserted, requiring states to contribute to the costs of unfunded superannuation liabilities of higher education institutions. This financial assistance is contingent on states remitting their share of these costs to the Commonwealth by 31 May 1988, with the amount to be determined by the Minister for Employment, Education and Training by 31 March 1988. Failure to meet this obligation can result in the Treasurer reducing the state's payments under this Act for the 1987-88 year by the amount of the outstanding contribution. Under this Act, states are required to adhere to the new formulas for calculating financial assistance and health grants, with specific parameters outlined in the amended sections. Additionally, states must contribute to the costs of unfunded superannuation liabilities of higher education institutions as stipulated in section 10a. The Minister for Employment, Education and Training is tasked with determining the amount each state should contribute, and these contributions must be made by 31 May 1988. If a state fails to meet this condition, the Treasurer has the authority to reduce the state's payments under this Act for the 1987-88 year by the amount of the unpaid contribution. The Act imposes specific consequences for non-compliance with the requirement to contribute to unfunded superannuation liabilities. If the Treasurer determines that a state has failed to meet the condition specified in section 10a(2), they may reduce any payment due to the state under this Act for the 1987-88 year by an amount equal to the unpaid contribution. This penalty is intended to ensure that states fulfill their obligations regarding the unfunded superannuation liabilities of higher education institutions. The Act does not specify any criminal penalties for breaches of its provisions, focusing instead on financial penalties and the withholding of payments.

Legal classification tags

Area of Law
Finance & Banking Law
Instrument
Act
Concepts
Commencement Provisions
Financial Assistance
State Contribution to Costs

Interactions

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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.