States Grants (Mental Institutions) Act 1955

Legislation au C1955A00067 Not in force Act

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STATES GRANTS (MENTAL INSTITUTIONS).

 

No. 67 of 1955.

An Act to make provision for the grant of Financial Assistance to the States in relation to Mental Institutions.

[Assented to 4th November, 1955.]

[Date of commencement, 2nd December, 1955.]

BE it enacted by the Queen’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 (Mental Institutions) Act 1955.

Definition.

2. In this Act, “mental institution means—

(a) a hospital for the insane ;

(b) a mental hospital ;

(c) a reception house ;

(d) a receiving house ; or

(e) any other similar institution,

that is conducted by a State or is in receipt of a grant for maintenance from a State.

Financial assistance to States.

3.—(1.) Subject to this Act, amounts determined in accordance with this section are payable, from time to time, to each State for the purposes of financial assistance in relation to mental institutions.

(2.) Subject to the next succeeding sub-section, the amount payable to a State under this section at any time is one-third of the amount, or of the total of the amounts, expended by the State for or in connexion with the buildings or equipment of a mental institution or mental institutions on or after the first day of July, One thousand nine hundred and fifty-five.

(3.) The amount which, but for this sub-section, would be payable to a State at any time under this section shall be reduced by any amount, or the total of any amounts, previously paid to the State under this section.

(4.) The amount payable to a State under this section at any time shall not be paid to the State unless the Auditor-General of the State has furnished to the Minister a certificate in writing certifying the amount, or the total of the amounts, expended by the State for or in


connexion with the buildings or equipment of a mental institution ox mental institutions on or after the first day of July, One thousand nine hundred and fifty-five, and before that time.

Maximum amount of financial assistance.

4. The amount, or the total of the amounts, paid to a State under this Act shall not exceed the amount shown in the following table opposite to the name of the State:—

 

£

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

3,830,000

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

2,740,000

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

1,460,000

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

895,000

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

720,000

Ta mania............................

355,000

 

10,000,000

Expenditure for purposes of this Act.

5.—(1.) For the purposes of this Act, an amount shall be deemed not to have been expended for or in connexion with the buildings or equipment of a mental institution unless the amount has been expended with the prior approval of the Minister for or in connexion with—

(a) the erection or alteration of a building used, or to be used, as a mental institution or as part of a mental institution ; or

(b) the acquisition, by purchase or otherwise, of equipment for use in a mental institution.

(2.) Where, before the commencement of this Act—

(a) an amount was expended for or in connexion with—

(i) the erection or alteration of a building used, or to be used, as a mental institution ; or

(ii) the acquisition of equipment for use in a mental institution ; and

(b) the expenditure of that amount is approved by the Minister within a period of six months after the commencement of this Act,

the amount shall be deemed to have been expended with the prior approval of the Minister.

Moneys expended by or on behalf of mental Institutions.

6. Moneys paid by a State to a mental institution, or to a person on behalf of a mental institution, and expended by the mental institution or that person, as the case may be, for or in connexion with the buildings or equipment of the mental institution, shall, for the purposes of this Act, be deemed—

(a) to have been expended by the State for or in connexion with the buildings or equipment of the mental institution ; and

(b) to have been so expended by the State at the time the moneys were expended by the mental institution or that person. as the case may be.

Claims for financial assistance.

7. The Minister may determine

(а) the manner in which a claim for an amount payable to a State under this Act shall be made; and

(b) the times at which payment of such claims shall be made.

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

 

Overview

The States Grants (Mental Institutions) Act 1955 was enacted to provide financial assistance to states in relation to mental institutions. This legislation was enacted by the Commonwealth Parliament to address the need for financial support for states in maintaining and developing mental health facilities. The policy objective of the Act is to assist states in the construction, alteration, and equipping of mental institutions by providing a financial contribution from the Commonwealth. Under this Act, the Commonwealth is to pay each state one-third of the amount expended by the state on buildings or equipment of mental institutions, subject to certain conditions and maximum limits on the financial assistance provided to each state. The Act also outlines the process for states to claim financial assistance and the conditions under which expenditure is deemed to have been made with the prior approval of the Minister.

Scope and Application

The States Grants (Mental Institutions) Act 1955 applies to the six Australian states: New South Wales, Victoria, Queensland, South Australia, Western Australia, and Tasmania, by providing financial assistance to these states in relation to mental institutions. The Act defines "mental institution" broadly to include hospitals for the insane, mental hospitals, reception houses, receiving houses, and any other similar institutions conducted by a state or in receipt of a grant for maintenance from a state. The financial assistance provided under the Act is limited to expenditure on the buildings or equipment of these institutions on or after the first day of July 1955. The amount payable to each state is one-third of the total expenditure incurred by the state, subject to a maximum amount specified for each state. Expenditure for the purposes of this Act must have the prior approval of the Minister, and any moneys paid by a state to a mental institution and expended for the buildings or equipment of that institution are deemed to have been expended by the state. The Minister has the authority to determine the manner and timing of claims for financial assistance and payments under the Act, with payments being made out of the Consolidated Revenue Fund. The Act does not specify any exclusions, exemptions, or thresholds beyond those outlined in the text.

Key Provisions

The States Grants (Mental Institutions) Act 1955 (section 1) provides financial assistance to the States for mental institutions, defined as hospitals for the insane, mental hospitals, reception houses, receiving houses, or similar institutions conducted by a State or receiving a grant for maintenance from a State (section 2). The financial assistance is one-third of the amount expended by the State for or in connection with the buildings or equipment of a mental institution on or after 1 July 1955 (section 3(2)). This amount is subject to a reduction by any previous payments made under the Act (section 3(3)) and requires a written certificate from the State's Auditor-General (section 3(4)). The total amount paid to a State under this Act is capped at specific amounts for each State (section 4). Expenditure on buildings or equipment must have prior approval from the Minister (section 5(1)), and any expenditure approved within six months after the commencement of the Act is also considered approved (section 5(2)). Moneys paid by a State to a mental institution for buildings or equipment are deemed to be State expenditures for these purposes (section 6). The Minister determines the process for claims and the timing of payments (section 7), and payments are made from the Consolidated Revenue Fund (section 8). Under the States Grants (Mental Institutions) Act 1955, States have the obligation to ensure that their expenditure on mental institutions meets the criteria specified in the Act, including the requirement for prior approval by the Minister for specific types of expenditure (section 5). States must also ensure that any moneys paid to mental institutions for buildings or equipment are appropriately accounted for as State expenditures (section 6). Additionally, the Act imposes a procedural obligation on the Minister to determine the manner of claims and payment timings (section 7), and to make payments from the Consolidated Revenue Fund (section 8). States are required to provide written certificates from their Auditor-General to certify the amounts expended (section 3(4)). Breach of the provisions of the States Grants (Mental Institutions) Act 1955, such as failing to obtain prior approval for expenditure or providing inaccurate expenditure details, could potentially lead to financial penalties or other consequences, although specific offences and penalties are not explicitly detailed within the provided text. Non-compliance with the requirement to obtain prior approval for expenditure (section 5(1)) or providing false information regarding expenditures could result in the withholding of financial assistance. The Act does not explicitly outline criminal or civil penalties for breaches, suggesting that administrative actions may be the primary recourse for non-compliance.

Legal classification tags

Area of Law
Funding & Appropriations
Instrument
Act
Concepts
Definitions & Interpretation
Financial Assistance
Expenditure Approval

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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.