STATES GRANTS (SPECIAL FINANCIAL ASSISTANCE).
No. 38 of 1954.
An Act to grant and apply out of the Consolidated Revenue Fund sums for the purpose of Financial Assistance to the States.
[Assented to 29th October, 1954.]
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 (Special Financial Assistance) Act 1954.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Financial assistance to States.
3. There is payable to each State, during the year which commenced on the first day of July, One thousand nine hundred and fifty-four, for the purpose of financial assistance, an amount calculated in accordance with the next succeeding section.
Amount of financial assistance payable.
4. The amount payable to a State under this Act is the amount by which the amount calculated in respect of that State under sections six and seven of the States Grants (Tax Reimbursement) Act 1946-1948 in respect of the year which commenced on the first day of July, One thousand nine hundred and fifty-four, is less than the amount that would be payable to that State if the aggregate grant to be divided amongst the States in accordance with section seven of that Act in respect of that year were One hundred and fifty million pounds.
Appropriation.
5. Payments in accordance with this Act shall be made out of the Consolidated Revenue Fund, which is appropriated accordingly.
Overview
The States Grants (Special Financial Assistance) Act 1954 was enacted to provide financial assistance to the states during the year commencing 1 July 1954. The Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia and received Royal Assent on 29 October 1954. The fundamental purpose of this Act is to grant and apply sums from the Consolidated Revenue Fund to each state for financial assistance, addressing the gap in financial support that emerged during the specified period. The financial assistance provided under this Act is calculated based on the shortfall between the amount determined under the States Grants (Tax Reimbursement) Act 1946-1948 and what would be payable if the aggregate grant for that year was set at one hundred and fifty million pounds. This appropriation ensures that payments are made out of the Consolidated Revenue Fund, as stipulated in the Act.
Scope and Application
The States Grants (Special Financial Assistance) Act 1954 pertains to the allocation of financial assistance from the Commonwealth to the individual states within Australia. This Act applies to all states, providing them with a specific financial grant during the fiscal year beginning 1 July 1954. The legislation outlines a formula for calculating the financial assistance payable to each state based on the amounts stipulated in the States Grants (Tax Reimbursement) Act 1946-1948, ensuring that any shortfall in their reimbursement amounts is compensated. The Act applies to the Commonwealth of Australia, with payments made out of the Consolidated Revenue Fund, which is appropriated in accordance with this Act. There are no stated exclusions, exemptions, or thresholds within the text of the Act itself, though the application and interpretation of the financial assistance may be further refined through subordinate instruments or administrative decisions.
Key Provisions
The main operative sections of the States Grants (Special Financial Assistance) Act 1954 (section 1) involve the calculation and payment of financial assistance to each state. Under section 3, the Act mandates that financial assistance be payable to each State for the year beginning on 1 July 1954. The amount of this assistance is determined by section 4, which requires that the assistance be calculated based on a comparison between the amount calculated under certain sections of the States Grants (Tax Reimbursement) Act 1946-1948 and a hypothetical amount that would be payable if the aggregate grant to be divided among the States was £150 million.
The Act imposes specific obligations on the Commonwealth in terms of financial assistance to the States. Section 3 necessitates that the Commonwealth pays financial assistance to each State, while section 4 outlines the precise calculation method for determining the amount payable. The payments must be made from the Consolidated Revenue Fund, as specified in section 5, which also includes the appropriation of funds for this purpose.
Under this Act, there are no explicit provisions detailing offences, penalties, or civil or criminal consequences for non-compliance. However, the obligation to pay the calculated financial assistance is stringent and failure to do so could be construed as a breach of the Act. While the Act does not specify penalties for non-compliance, such breaches could potentially lead to legal actions or other consequences under the broader framework of Australian law. It is important for the Commonwealth to adhere to the financial obligations outlined in the Act to ensure the intended financial support is provided to the States.