States Grants (Local Public Works) Act 1936

Legislation au C1936A00012 Not in force Act

Legislation content

 

STATES GRANTS (LOCAL PUBLIC WORKS).

 

No. 12 of 1936.

An Act to grant and apply out of the Consolidated Revenue Fund sums for the purposes of Financial Assistance to the States.

[Assented to 27th May, 1936.]

Preamble.

BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, for the purpose of appropriating the grant originated in the House of Representatives, as follows:—

Short title.

1. This Act may be cited as the States Grants (Local Public Works) Act 1936.


Definitions.

2. In this Act, unless the contrary intention appears—

“approved loans” means loans the terms of which have been approved by the Government of a State;

“public work” means any work—

(a) which is constructed or is to be constructed by the Government of a State or by a local Government authority or is a hospital or public health institution; and

(b) which is declared by the Government of a State to be a public work and is approved by the Treasurer of the Commonwealth.

Appropriation for Financial Assistance to States.

3. There shall be payable out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, in each financial year during the period commencing on the first day of July, One thousand nine hundred and thirty-five and ending on the thirtieth day of June One thousand nine hundred and forty-five, the sum of One hundred thousand pounds for the purpose of financial assistance to the States.

Allocation of grant.

4. The amount payable under this Act in each financial year during the period referred to in section three of this Act to each State shall be the amount shown in the following table opposite to the name of that State:—

 

£

New South Wales....................................

39,400

Victoria...........................................

27,400

Queensland.........................................

14,450

South Australia......................................

8,700

Western Australia....................................

6,650

Tasmania..........................................

3,400

 

£100,000

Time and manner of payment.

5. Any amount payable to a State under this Act shall be paid to that State at such times, and in such manner, as the Treasurer of the Commonwealth approves.

Conditions of grant.

6. Any moneys paid in any financial year to a State under this Act (in this section referred to as “the moneys”) shall be paid upon the following conditions:—

(a) The moneys shall, subject to this section, be paid by the Treasurer of the State to authorities or bodies controlling public works for the purpose of the payment of interest and sinking fund charges on approved loans for public works commenced, with the approval of the Government of the State, on or after the first day of July, One thousand nine hundred and thirty-five.


(b) The Government of a State makes or has made a contribution—

(i) towards the annual interest and sinking fund charges on any loan in respect of which moneys for the payment of interest and sinking fund charges are paid under the last preceding paragraph;

(ii) in reduction of the capital amount of any such loan, or towards the capital cost of any public work specified in the last preceding paragraph; or

(iii) under each of the last two preceding sub-paragraphs.

(c) A payment made in any financial year under paragraph (a) of this section in respect of the interest and sinking fund charges on any loan shall not exceed—

(i) where the Government of a State has made a contribution in that financial year under subparagraph (i) of the last preceding paragraph—the amount of that contribution, or the balance of the amount of interest and sinking fund charges payable on the loan in respect of that financial year after any such contribution has been deducted therefrom, whichever is the less;

(ii) where the Government of a State has made on or after the first day of July, One thousand nine hundred and thirty-five, a contribution under subparagraph (ii) of the last preceding paragraph—the amount by which the interest and sinking fund charges, which would have been payable in that financial year on a loan representing the total capital cost of the public work, are reduced by the making of the contribution; or

(iii) where the Government of a State has made a contribution in that financial year under subparagraph (i) and under sub-paragraph (ii) of the last preceding paragraph—the sum of the amounts specified in the last two preceding sub-paragraphs.

(d) The moneys shall not be applied for or towards the capital cost of any work, otherwise than by way of payment of sinking fund charges.

(e) In selecting loans for the purposes of payments under paragraph (a) of this section preference shall, as a general rule, be given, as far as practicable, to loans for works in districts outside metropolitan areas, and, as between works in different districts, to those affording the greatest opportunity for the employment of labour.

(f) Where the Government of a State directly controls a public work of a kind which, in any other State, is controlled by an authority or body, the Government of that State may apply the whole or portion of the moneys towards payment of interest and sinking fund charges on


loans for that public work, in the same manner and subject, mutatis mutandis, to the same conditions as if the public work were controlled by an authority or body.

(g) The Treasurer of the State shall keep a separate account in the books of the Treasury to which the moneys shall be credited and to which there shall be debited all moneys paid or applied by the State under this section.

(h) Forthwith after the close of each financial year (commencing with the financial year ending on the thirtieth day of June, One thousand nine hundred and thirty-six) the Government of each State shall furnish to the Treasurer of the Commonwealth a statement, certified by the Auditor-General for that State, setting out, in respect of that financial year—

(i) the amount (if any) to the credit of the account referred to in the last preceding paragraph at the beginning of the financial year;

(ii) the amount received from the Commonwealth under this Act during the financial year;

(iii) the amounts paid or applied by the State under this Act during the financial year (specifying the loans in respect of the interest and sinking fund charges on which the amounts were paid or applied); and

(iv) the amount (if any) to the credit of the account referred to in the last preceding paragraph at the close of the financial year.

 

Overview

The States Grants (Local Public Works) Act 1936 was enacted to provide financial assistance to states for local public works, aiming to stimulate employment and economic activity during a period of economic hardship. The Act was passed by the Commonwealth Parliament and received Royal Assent on 27th May, 1936. The primary objective of the legislation was to allocate a total of £100,000 annually from the Consolidated Revenue Fund to the states for a decade, from July 1935 to June 1945, to assist in funding public works such as hospitals and public health institutions. These funds were to be used specifically for paying interest and sinking fund charges on approved loans for public works, with conditions including state contributions towards these costs and preferences for works in non-metropolitan areas to maximise employment benefits.

Scope and Application

The States Grants (Local Public Works) Act 1936 applies to the Governments of the various States of Australia, as well as local government authorities, and it is concerned with the appropriation of funds from the Consolidated Revenue Fund for the purpose of providing financial assistance to the States. The Act applies to public works, specifically those constructed or to be constructed by state or local government authorities or those that are hospitals or public health institutions, provided they are declared by the state government as public works and approved by the Treasurer of the Commonwealth. The geographic reach of the Act is limited to Australia, more specifically to the states and territories that were part of the Commonwealth at the time of the Act's enactment. The Act does not explicitly state any exclusions, exemptions, or thresholds; however, the allocation of the grant to each state is specified in the Act. The application of the Act may be extended or restricted through subordinate instruments, although this is not addressed within the text of the Act itself.

Key Provisions

The main operative sections of the States Grants (Local Public Works) Act 1936 (C1936A00012) provide for the allocation and conditions of a grant for financial assistance to the states for local public works. Section 3 of the Act establishes the appropriation of £100,000 from the Consolidated Revenue Fund for each financial year from July 1, 1935, to June 30, 1945. Section 4 outlines the specific amounts allocated to each state, while Section 5 details the time and manner of payment, subject to approval by the Treasurer of the Commonwealth. Section 6 sets out the conditions under which the grant moneys are to be used, including the payment of interest and sinking fund charges on approved loans for public works, the contribution of the state government towards these charges, and the requirement that the funds be used exclusively for the purpose of interest and sinking fund charges. The obligations imposed by the Act on the parties it governs are detailed in Section 6, which stipulates that the grant moneys must be paid by the Treasurer of the State to authorities or bodies controlling public works. The state government must contribute towards the annual interest and sinking fund charges on loans and the capital costs of public works. Additionally, the state government must ensure that payments for interest and sinking fund charges do not exceed the contributions made by the state government. The state government is also required to maintain a separate account for the grant moneys and provide an annual report to the Treasurer of the Commonwealth detailing the use of the funds. The Act imposes penalties and consequences for non-compliance with the conditions of the grant. Section 6(h) requires the state government to furnish an annual report to the Treasurer of the Commonwealth, certified by the Auditor-General for that State. Failure to provide this report could result in the withholding of future payments or other administrative consequences. Although the Act does not explicitly outline criminal or civil penalties for breach of the grant conditions, non-compliance could potentially lead to financial penalties or the termination of the grant. The Act's provisions are designed to ensure that the grant moneys are used effectively and transparently for the intended purpose of supporting local public works.

Legal classification tags

Area of Law
Financial Law
Instrument
Act
Concepts
Definitions & Interpretation
Appropriation for Financial Assistance to States
Conditions of grant
Reporting & Disclosure Obligations

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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.