States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983

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States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983

No. 53 of 1983

 

An Act to amend the States (Tax Sharing and Health Grants) Act 1981, and for related purposes

[Assented to 1 October 1983]

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 (No. 2) 1983.

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

Commencement

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Section 5 shall come into operation on 1 February 1984.

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 bears to the sum of—

(a) 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;

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

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

(d) the agreed amount for South Australia; and

(e) 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) by omitting sub-section (4) and substituting the following sub-sections:

(4) In addition to the payments to which South Australia and Tasmania are each entitled under sub-section (3) in respect of the year commencing on 1 July 1983, each of those States is entitled to the payment, in respect of that year, by way of financial assistance, of an amount equal to the difference between the agreed amount for that State and the sum of the amounts paid to that State by the Commonwealth in respect of the period commencing on 1 July 1983 and expiring on 31 January 1984 under the cost sharing agreement subsisting between the Commonwealth and that State during that period under section 30 of the Health Insurance Act 1973.

(5) In this section, agreed amount, in relation to South Australia or Tasmania, means an amount agreed upon between the Commonwealth Minister for Health and the Minister for Health for that State to represent the amount that would have been payable to the State in respect of the year commencing on 1 July 1983 under the cost sharing agreement subsisting between the Commonwealth and that State under section 30 of the Health Insurance Act 1973 relating to the provision of hospital services if—

(a) that agreement as in force immediately before 1 February 1984 had continued in force during the period commencing on 1 February 1984 and expiring on 30 June 1984; and

(b) the policies in relation to charges for provision of those hospital services in effect in that State immediately before 1 February 1984 had continued in effect during the period referred to in paragraph (a)..


Distribution of certain health grants among the States

4. Section 19 of the Principal Act is amended—

(a) by omitting, 18 (1) or 18 (2) and substituting or 18 (1); and

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

(2) An amount to which the States are together entitled under sub-section 18 (2) shall be distributed among the States in such manner as is prescribed for the purposes of that sub-section..

Repeal of section 20

5. Section 20 of the Principal Act is repealed.

6. Sections 22 and 23 of the Principal Act are repealed and the following section is substituted:

Amounts payable to South Australia and Tasmania are additional to certain entitlements under the Health Insurance Act 1973

22. The amounts payable to South Australia and Tasmania under Part III in respect of the year commencing on 1 July 1981, 1 July 1982 or 1 July 1983 are in addition to any amounts payable to those States in respect of that year, or, so far as the year commencing on 1 July 1983 is concerned, any part of that year, under the Health Insurance Act 1973 in accordance with agreements under section 30 of that Act with those States for the provision of hospital services..

 

NOTE

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

Overview

The States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983 was enacted by the Commonwealth of Australia's Parliament to address specific financial and health-related provisions outlined in the original States (Tax Sharing and Health Grants) Act 1981. This legislation aimed to modify the distribution and calculation of health grants among the states, ensuring that adjustments reflect recent changes in tax collections and health service agreements. The Act was designed to provide a more equitable and transparent method of allocating financial assistance to states based on the most recent tax data and agreed health provisions, thereby supporting the Commonwealth's policy objective of maintaining balanced and sustainable fiscal relationships with the states. The Act came into operation on the day it received Royal Assent, with certain sections taking effect from 1 February 1984.

Scope and Application

The States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983 amends the States (Tax Sharing and Health Grants) Act 1981, primarily affecting the distribution of tax sharing and health grants among Australian states. This Act applies to all states of Australia and is concerned with the allocation of funds in respect of tax sharing and health grants, particularly for the financial years commencing on 1 July 1983, 1 July 1984, and 1 July 1985. The Act modifies the formula for calculating the tax sharing and health grants to ensure equitable distribution based on the Commonwealth's tax collection. Notably, it also addresses specific entitlements for South Australia and Tasmania, ensuring these states receive additional payments over what they would have received under the Health Insurance Act 1973. The Act extends its application through subordinate instruments that may further detail the distribution methodology and compliance requirements.

Key Provisions

The key provisions of the States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983 involve several amendments to the States (Tax Sharing and Health Grants) Act 1981. Section 3 amends the health grants for the years 1983-84 and 1984-85, altering the formula for calculating the entitlement of the states to the payment of financial assistance. This formula now takes into account the total amount of taxes collected by the Commonwealth and the agreed amounts for South Australia and Tasmania, as well as their respective entitlements under the Health Insurance Act 1973. Section 4 modifies the distribution of certain health grants among the states, allowing for a prescribed manner of distribution of the amount to which the states are together entitled. Section 5 repeals section 20 of the Principal Act, which previously set out the manner of calculation of the Commonwealth's share of the total amount of taxes collected. Finally, Section 6 repeals sections 22 and 23 of the Principal Act and inserts a new section clarifying that the amounts payable to South Australia and Tasmania are in addition to any amounts payable to those states under the Health Insurance Act 1973. The obligations imposed by this Act are primarily concerned with the recalculation and distribution of health grants among the states based on the new formula outlined in the amended legislation. The Commonwealth is obligated to calculate the health grants in accordance with the amended provisions and distribute them to the states as specified. The states, in turn, are entitled to receive these grants in the manner prescribed by the Act. There are no specific offences or penalties mentioned within the text of the Act itself. However, non-compliance with the requirements of the Act, such as failing to calculate or distribute the health grants in accordance with the amended provisions, could potentially lead to legal consequences under other relevant legislation. It is important for all parties involved to adhere to the obligations set out in this Act to ensure the proper functioning of the tax sharing and health grants system.

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Taxation Law
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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.