STATES GRANTS (SPECIAL FINANCIAL ASSISTANCE).
No. 108 of 1956.
An Act to grant and apply out of the Consolidated Revenue Fund sums for the purpose of Financial Assistance to the States.
[Assented to 15th November, 1956.]
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 1956.
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-six, 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-six, 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 seventy-three million pounds.
(2.) In addition to the amount calculated in accordance with the last preceding sub-section, there is payable to the State of Victoria an amount of One million and fifty thousand 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 1956 was enacted to address the need for providing additional financial support to the states during the fiscal year beginning on the first day of July 1956. This Act was introduced by the Parliament of the Commonwealth of Australia to ensure that states receive financial assistance calculated in accordance with the specified provisions. The policy objective of this Act is to provide a special grant to each state to aid in their fiscal needs, with a specific additional sum designated for the State of Victoria.
The Act specifies that financial assistance is to be granted to each state for the stated fiscal year, with calculations based on the amounts determined under the States Grants (Tax Reimbursement) Act 1946–1948. This assistance is payable from the Consolidated Revenue Fund, thereby ensuring the necessary funds are appropriated for this purpose. The enactment reflects the Commonwealth's commitment to supporting state governments in meeting their financial obligations during a particular period.
Scope and Application
The States Grants (Special Financial Assistance) Act 1956 applies to all Australian states, providing financial assistance for the fiscal year beginning 1 July 1956. The Act specifies that payments are to be made from the Consolidated Revenue Fund, with the amount of financial assistance determined by a calculation involving the States Grants (Tax Reimbursement) Act 1946–1948. Specifically, the amount payable to each state is the difference between what was calculated under the earlier act and the amount that would have been payable if the aggregate grant was set at one hundred and seventy-three million pounds. Additionally, the state of Victoria receives a supplementary payment of one million and fifty thousand pounds. The Act comes into operation on the day it receives Royal Assent and does not specify any exclusions or exemptions. The application of the Act may be further extended or restricted through subordinate instruments, although these are not detailed within the text of the primary Act itself.
Key Provisions
The main operative sections of the States Grants (Special Financial Assistance) Act 1956 (sections 3 and 4) establish the criteria and calculation for the financial assistance to be provided to the States. Section 3 confirms the purpose of the Act, which is to provide financial assistance to each State for the specified year. Section 4 outlines the method of calculating the financial assistance, stating that the amount payable to each State is determined by comparing the amount calculated under sections six and seven of the States Grants (Tax Reimbursement) Act 1946–1948 to the hypothetical amount that would be payable if the aggregate grant were £173 million. Additionally, Section 4(2) stipulates an additional amount of £1,050,000 payable specifically to the State of Victoria.
The Act imposes obligations on the Commonwealth to calculate and disburse the financial assistance according to the specified formulae. It mandates that payments be made from the Consolidated Revenue Fund, as appropriated in Section 5, ensuring that the financial assistance is disbursed in a timely and transparent manner. This appropriation signifies the Commonwealth's commitment to providing the necessary funds for the financial assistance outlined in the Act.
Failure to comply with the provisions of the Act could potentially lead to legal consequences. While the Act does not explicitly outline offences or penalties for breaches, non-compliance with legislative mandates could result in legal actions for failure to fulfil statutory obligations. This might include civil actions for non-payment or administrative penalties imposed by the relevant authorities. Additionally, the Commonwealth could face political and reputational repercussions for failing to adhere to the terms of the Act.