States Grants (Receipts Duty)
No. 102 of 1970
An Act to provide for the making of Grants to the States of Amounts of Receipts Duty paid to the Commonwealth.
[Assented to 4 November 1970]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the States Grants (Receipts Duty) Act 1970.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Definitions.
3. In this Act—
“additional duty” means—
(a) additional duty payable under sub-section (1.) of section 38, under sub-section (2.) of section 40, or under sub-section (1.) of section 61, of the Receipts Duties (Administration) Act; and
(b) an amount ordered to be paid to the Commissioner of Taxation under sub-section (1.) of section 60, or under section 63, of that Act;
“receipts duty” means duty payable in accordance with the Receipts Duties (Administration) Act, and includes additional duty;
“the Receipts Duties (Administration) Act” means the States Receipts Duties (Administration) Act 1970.
Receipts Duty Trust Account.
4.—(1.) An account is hereby established to be known as the Receipts Duty Trust Account.
(2.) The Receipts Duty Trust Account is a Trust Account for the purposes of section 62a of the Audit Act 1901–1969.
Moneys to be paid into the Trust Account.
5. There shall be paid into the Receipts Duty Trust Account amounts equal to amounts of receipts duty received by the Commonwealth.
Payment of financial assistance to the States.
6. There is payable to each State, for the purpose of financial assistance out of moneys standing to the credit of the Receipts Duty Trust Account, amounts equal to the amounts of receipts duty paid in respect of money that is received in the State or in respect of money that, under the Receipts Duties (Administration) Act, is to be deemed to have been received in the State.
Repayment of grants in respect of refunds and rebates of duty.
7. Where an amount is paid to a State under this Act in respect of any duty and the duty is refunded in whole or in part or a rebate is paid in respect of the whole or a part of the duty, the State shall pay to the Commonwealth an amount equal to the refund or the rebate, as the case may be.
Overview
The States Grants (Receipts Duty) Act 1970 was enacted to provide a mechanism for the Commonwealth to make grants to the states from the proceeds of receipts duty. Enacted by the Parliament of Australia, the Act aims to ensure equitable distribution of receipts duty revenue among the states to support their financial needs. The legislation addresses a gap in the fiscal relationship between the Commonwealth and the states by establishing a structured system for the disbursement of receipts duty, which is collected under the Receipts Duties (Administration) Act. The Act establishes the Receipts Duty Trust Account into which all receipts duty must be paid, ensuring a transparent and accountable process for the distribution of funds to the states. Additionally, it outlines provisions for the repayment of grants in cases where duty refunds or rebates are issued, maintaining the integrity of the financial assistance provided.
Scope and Application
The States Grants (Receipts Duty) Act 1970 applies to the distribution of receipts duty collected by the Commonwealth to the various states for financial assistance. This Act specifically defines the process for the establishment of the Receipts Duty Trust Account into which all receipts duty must be paid. The moneys in this account are then distributed to the states based on the receipts duty paid in respect of money received within each state or deemed to have been received there under the Receipts Duties (Administration) Act. The Act outlines that if any duty is refunded or a rebate is issued, the state must repay the Commonwealth an equivalent amount. This Act applies nationally, impacting all states and territories within the Commonwealth of Australia, and is administered under the Receipts Duties (Administration) Act. There are no stated exclusions or thresholds in the Act itself, although the application and specifics of the receipts duty may be further detailed in subordinate legislation.
Key Provisions
The main sections of the States Grants (Receipts Duty) Act 1970 set out the establishment and operation of the Receipts Duty Trust Account (section 4), the requirement for moneys to be paid into this account (section 5), the payment of financial assistance to the States (section 6), and the conditions under which refunds and rebates must be repaid to the Commonwealth (section 7). Specifically, section 4 establishes the Receipts Duty Trust Account as a Trust Account under the Audit Act 1901–1969, while section 5 mandates that the amounts of receipts duty received by the Commonwealth must be deposited into this account. Section 6 dictates that each state is to receive payments from the account, proportionate to the amounts of receipts duty paid in respect of money received within that state or deemed to have been received within that state under the Receipts Duties (Administration) Act. Finally, section 7 stipulates that if any duty for which a grant was paid is refunded or subject to a rebate, the state must repay the Commonwealth the equivalent amount of the refund or rebate.
The Act imposes several obligations on the parties it governs. The Commonwealth is required to deposit into the Receipts Duty Trust Account all amounts of receipts duty received (section 5). The states, on the other hand, must ensure that they receive their allocated payments from the Trust Account, based on the duty paid in respect of money received within their jurisdiction or deemed to have been received there (section 6). Additionally, if any duty for which a grant was paid is refunded or subject to a rebate, the states must repay the Commonwealth the equivalent amount of the refund or rebate (section 7). This ensures the equitable distribution of receipts duty and maintains the integrity of the financial assistance provided.
The Act includes provisions for civil and criminal consequences in the event of breaches. However, the specific offences, penalties, or consequences for non-compliance are not detailed within the text of the Act provided. Typically, breaches of legislative provisions could result in civil penalties, fines, or legal action to recover any financial losses incurred. In cases of serious or wilful non-compliance, criminal penalties might also apply, which could include imprisonment, depending on the severity of the breach and relevant jurisdictional laws. Nonetheless, for detailed information on specific penalties, further examination of the associated administrative act or relevant case law would be necessary.