STATES GRANTS (SPECIAL FINANCIAL ASSISTANCE).
No. 44 of 1955.
An Act to grant and apply out of the Consolidated Revenue Fund sums for the purpose of Financial Assistance to the States.
[Assented to 2nd November, 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 (Special Financial Assistance) Act 1955.
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-five, for the purpose of financial assistance, an amount or amounts calculated in accordance with the next succeeding section.
Amount of financial assistance payable.
4.—(1.) Subject to the next succeeding sub-section, 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-five, is less than the amount which 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-five million pounds.
(2.) In addition to the amount calculated in accordance with the last preceding sub-section, there is payable to the State of New South Wales an amount of Two 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 1955 was enacted to provide financial assistance to the states of Australia during the fiscal year starting 1 July 1955. This Act was introduced by the Parliament of the Commonwealth of Australia to address the specific need for additional financial support to states, supplementing the provisions made under the States Grants (Tax Reimbursement) Act 1946-1948. The policy objective of this Act was to ensure that states received adequate funding to support their operations and services, by calculating the necessary financial assistance based on the shortfall between the amounts calculated under the earlier Act and a revised aggregate grant of One hundred and fifty-five million pounds. Additionally, the Act made a special provision of Two million pounds for the State of New South Wales.
Scope and Application
The States Grants (Special Financial Assistance) Act 1955 applies to the financial assistance payable to each Australian state for the specified year, aiming to provide additional support beyond the regular tax reimbursement grants. This Act is applicable to the Commonwealth of Australia and is effective as of its assent on 2nd November, 1955. The financial assistance is calculated based on a formula that considers the amounts determined under the States Grants (Tax Reimbursement) Act 1946-1948, with an additional specified amount allocated to the State of New South Wales. The payments made under this Act are funded from the Consolidated Revenue Fund, ensuring that the financial support is appropriately sourced and allocated. This legislation serves to augment the financial resources available to the states, thereby supporting their budgetary needs and public services.
Key Provisions
The States Grants (Special Financial Assistance) Act 1955 (Section 1) is a piece of legislation enacted to allocate and apply funds from the Consolidated Revenue Fund for financial assistance to the States of Australia. The Act came into effect on the day it received Royal Assent (Section 2). It specifies that financial assistance will be provided to each State during the financial year beginning 1 July 1955 (Section 3). The amount of assistance payable is calculated based on certain criteria set out in the Act, specifically referencing sections six and seven of the States Grants (Tax Reimbursement) Act 1946-1948 (Section 4). Essentially, the financial assistance amount is determined by the difference between the amount calculated under the aforementioned sections for 1955-1956 and the hypothetical amount if the total grant for that year were £155 million. Additionally, New South Wales is to receive an extra £2 million (Section 4(2)).
The Act imposes certain obligations on the Commonwealth, primarily to ensure that the specified financial assistance is accurately calculated and disbursed from the Consolidated Revenue Fund to the respective states (Section 5). This includes the necessary administrative tasks of determining the amounts due to each state based on the outlined calculations. The Commonwealth is also responsible for ensuring that these payments are made in a timely manner and in accordance with the provisions set forth in the Act.
There are no explicit offences, penalties, or civil/criminal consequences mentioned in the Act itself for non-compliance with its provisions. However, any failure to adhere to the financial calculations or to make payments as required could potentially lead to legal challenges or disputes between the Commonwealth and the states involved. It is important to note that the Act focuses primarily on the allocation and calculation of financial assistance, rather than on the enforcement mechanisms or consequences of non-compliance.