States (Tax Sharing and Health Grants) Amendment Act 1984

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States (Tax Sharing and Health Grants) Amendment Act 1984

No. 70 of 1984

 

An Act to amend the States (Tax Sharing and Health Grants) Act 1981

[Assented to 25 June 1984]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the States (Tax Sharing and Health Grants) Amendment Act 1984.

(2) The States (Tax Sharing and Health Grants) Act 19811 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Health grants for 1983-84 and for 1984-85

3. Section 18 of the Principal Act is amended—

(a) by omitting sub-section (2) and substituting the following sub-section:

(2) The States are together entitled to the payment, in respect of the year commencing on 1 July 1984, by way of financial assistance, of an amount that is the difference between—

(a) an amount that bears to the sum of—

(i) the amount to which the States (other than South Australia and Tasmania) are together entitled under sub-section (1) in respect of the year commencing on 1 July 1983;

(ii) the amount to which South Australia is entitled under sub-section (3) in respect of the year commencing on 1 July 1983;

(iii) the amount to which Tasmania is entitled under sub-section (3) in respect of the year commencing on 1 July 1983;

(iv) the agreed amount for South Australia; and

(v) the agreed amount for Tasmania,

the same proportion as the total amount of the taxes collected by the Commonwealth in the last-mentioned year bears to the total amount of taxes collected by the Commonwealth in the year commencing on 1 July 1982; and

(b) an amount ascertained by—

(i) calculating, in respect of each State the name of which is specified in column 1 of Schedule 3, the amount ascertained in accordance with the formula GH,

where—

G is the number ascertained by dividing the sum of—

(A) the index number in relation to the State in relation to the March quarter in 1985; and

(B) the index numbers in relation to the State in relation to the 3 quarters that immediately preceded that quarter,

by the sum of—

(C) the index number in relation to the State in relation to the March quarter in the year 1984; and

(D) the index number in relation to the State in relation to the 3 quarters that immediately preceded that last-mentioned quarter; and

H is the amount specified in column 2 of that Schedule opposite to the name of that State specified in column 1 of that Schedule; and

(ii) adding the amounts calculated under sub-paragraph (i).; and

(b) by adding at the end thereof the following sub-sections:

(6) In sub-sections (2), (7) and (8), index number, in relation to a State in relation to a quarter, means the All Groups Consumer Price Index number published by the Statistician in respect of the capital city of that State in respect of that quarter.

(7) Subject to sub-section (8), if at any time the Statistician publishes an index number in respect of a quarter in substitution for an index number previously published by him in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of sub-section (2).

(8) If at any time the Statistician changes the reference base for the Consumer Price Index, then, for the purposes of sub-section (2), regard shall be had only to index numbers published in terms of the new reference base..

4. After section 22 of the Principal Act the following section is inserted:

Advance payments to States for 1985-86

23. The Treasurer may, during the period of 6 months commencing on 1 July 1985, make payments to a State of amounts not exceeding in the aggregate an amount equal to ½ of the sum of—

(a) the guaranteed minimum tax sharing amount (within the meaning of Division 2 of Part II) in relation to the State in relation to the year commencing on 1 July 1984; and

(b) the amount payable to the State under sub-section 19 (2) out of the amount to which the States are together entitled under sub-section 18 (2)..

5. The Principal Act is amended by adding at the end thereof the following Schedule:

SCHEDULE 3 Sub-section 18 (2)

Column 1

Column 2

Name of State

Amount

 

$

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

4,300,000

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

3,200,000

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

2,700,000

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

1,600,000

Tasmania............................................

600,000

NOTE

1. No. 99, 1981, as amended. For previous amendments, see Nos. 8 and 94, 1982; and Nos. 31, 51 and 53, 1983.

Overview

The States (Tax Sharing and Health Grants) Amendment Act 1984 was enacted to address specific financial allocations and amendments to the States (Tax Sharing and Health Grants) Act 1981. This Act was passed by the Queen, in conjunction with the Senate and the House of Representatives of the Commonwealth of Australia, with the objective of modifying the distribution of financial assistance to states and territories. The policy objective of the Act was to adjust the formula for calculating health grants and to introduce provisions for advance payments to states, thereby ensuring more precise and timely financial support in line with the evolving fiscal needs of the states. The Act came into operation on the day it received Royal Assent.

Scope and Application

The States (Tax Sharing and Health Grants) Amendment Act 1984 applies to the Commonwealth of Australia and its states and territories, primarily focusing on the distribution of tax revenues and health grants. It amends the States (Tax Sharing and Health Grants) Act 1981 to modify the financial assistance formula for health grants for the years 1983-84 and 1984-85, adjusting the entitlement of states based on the Commonwealth's tax collection and using updated indices for consumer prices. Additionally, the Act introduces a provision for advance payments to states for the year 1985-86, allowing the Treasurer to disburse up to half of the guaranteed minimum tax-sharing amount and the amount payable under the amended health grants formula during a six-month period starting 1 July 1985. The Act does not explicitly state exclusions, exemptions, or thresholds, but its provisions apply to all states and territories within the Commonwealth of Australia. The application of the Act is further defined by the subordinate instruments and regulations that may be promulgated under its authority.

Key Provisions

The States (Tax Sharing and Health Grants) Amendment Act 1984 amends the Principal Act to modify the financial assistance provided to states through health grants for the financial years 1983-84 and 1984-85. Specifically, Section 3 of the Act alters the formula used to calculate the health grants for the year commencing on 1 July 1984 (subsection 18(2)). The new formula requires the calculation of an amount that reflects the proportion of the total taxes collected by the Commonwealth in the previous year relative to the total amount of taxes collected in the year commencing on 1 July 1982. Additionally, it introduces a new calculation method for each state listed in Schedule 3, based on the All Groups Consumer Price Index numbers. The index number is determined by dividing the sum of the index numbers for the March quarter in 1985 and the three preceding quarters by the sum of the index numbers for the March quarter in 1984 and the preceding three quarters. The resulting amount is then multiplied by a specified value from Schedule 3. The Act imposes obligations on the Treasurer and the Statistician to ensure the accurate calculation and payment of health grants. The Treasurer must make advance payments to states for the 1985-86 financial year within a specified period, up to half the sum of the guaranteed minimum tax sharing amount for the state in relation to 1 July 1984 and the amount payable to the state under subsection 19(2) (Section 4). The Statistician is responsible for publishing index numbers and ensuring their accuracy, as any changes or substitutions must be disregarded under the Act (subsections 6, 7, and 8). Breach of these obligations or failure to adhere to the prescribed formulas and schedules could lead to legal consequences. While the Act does not explicitly state penalties for non-compliance, breaches may result in disputes over the accuracy of health grants, potentially leading to litigation. Additionally, any misapplication of funds or improper calculations could attract penalties under related financial management laws, including fines or other administrative sanctions. The exact consequences would depend on the specific nature of the breach and the applicable legal frameworks governing financial administration and public expenditure.

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Taxation Law
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Amending Act
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Definitions & Interpretation
Commencement Provisions
Repeal & Amendment
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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.