EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 138
ISSUED BY THE AUTHORITY OF THE TREASURER
SUBJECT: STATES (TAX SHARING AND HEALTH GRANTS) ACT 1981
STATES (TAX SHARING AND HEALTH GRANTS) REGULATIONS (AMENDMENT)
These regulations define, for the purposes of section 19 of the States (Tax Sharing and Health Grants) Act 1981 (‘the Act’), the distribution among the States (excluding South Australia and Tasmania) and the Northern Territory of certain aggregate health grants payable to those States and the Northern Territory in 1982-83 and 1983-84, and, for 1984-85, the distribution of the aggregate health grant payable to all States and the Northern Territory in that year.
Sub-sections 16(1) and 18(1) of the Act define the aggregate health grant payable to the States (other than South Australia and Tasmania) and the Northern Territory in 1982-83 and 1983-84 respectively, while sub-section 18(2) defines the aggregate health grant payable to all States and the Northern Territory in 1984-85.
Sub-section 19(1) of the Act provides that the aggregate health grant payable to the States (excluding South Australia and Tasmania) and the Northern Territory in 1982-83 and 1983-84 shall be distributed in a manner prescribed for this purpose, which will allow regard to be had of any findings of the Commonwealth Grants Commission, while sub-section 19(2) provides that the aggregate health grant payable to all States and the Northern Territory shall be distributed in a manner prescribed for the purposes of that sub-section.
Under sub-section 16(1) of the Act, the total health grant payable to the States (other than South Australia and Tasmania) and the Northern Territory is defined as the sum of certain “prescribed amounts” for each State as defined in sub-section 16(2). Proposed sub-regulation 3B(1), subject to proposed sub-regulation 3B(6), defines each State’s health grant in 1982-83 as being equal to the prescribed amount for that State as defined in sub-section 16(2) of the Act.
In 1983-84, the total health grant payable to the States (excluding South Australia and Tasmania) and the Northern Territory is defined in sub-section 18(1) of the Act as being the total amount payable with respect to 1982-83, increased in the same proportion that total Commonwealth tax collections in 1982-83 bear to those collections in 1981-82. Subject to proposed sub-regulation 3B(6), proposed sub-regulation 3B(2) defines each State’s (other than South Australia’s and Tasmania’s) and the Northern Territory’s share of this total grant as being the same proportion that the prescribed amount for that State in 1982-83 bears to the total grant payable in 1982-83.
In 1984-85, the total health grant payable to the States (including South Australia and Tasmania) and the Northern Territory is defined in sub-section 18(2) of the Act as the sum of the total health grant payable to the States (other than South Australia and Tasmania) and the Northern Territory in 1983-84 (as defined in Sub-section 18(1) of the Act) and amounts for each of South Australia and Tasmania, all increased by the rate of growth of total Commonwealth tax collections in 1983-84 compared with 1982-83, and subtracting from that figure, the sum of certain amounts defined in sub-paragraph 18(2) (b) (i) of the Act. Proposed sub-regulations 3B(3), 3B(4) and 3B(5) define the individual State and Northern Territory distributions of this total amount.
Proposed sub-regulation 3B(6) permits the Treasurer to vary the amount that would be paid to a State or States under sub-regulation (1) or (2) having regard to any findings of the Commonwealth Grants Commission.
Overview
The States (Tax Sharing and Health Grants) Regulations (Amendment) 1984 was enacted to amend the States (Tax Sharing and Health Grants) Act 1981, addressing the problem of the distribution of aggregate health grants among the Australian states and territories. This regulation was issued by the authority of the Treasurer under the Statutory Rules 1984 No. 138. The policy objective of these amendments is to define the distribution of certain aggregate health grants among the states and the Northern Territory for the fiscal years 1982-83, 1983-84, and 1984-85. These amendments are designed to ensure that the distribution of health grants considers the findings of the Commonwealth Grants Commission and is proportionate to the Commonwealth tax collections for the relevant periods.
Scope and Application
The States (Tax Sharing and Health Grants) Regulations (Amendment) statutory rules pertain to the distribution of certain aggregate health grants among the Australian states, excluding South Australia and Tasmania, and the Northern Territory for the financial years 1982-83, 1983-84, and 1984-85. This regulatory framework is an extension of the States (Tax Sharing and Health Grants) Act 1981, and it is issued under the authority of the Treasurer. These regulations specifically outline how the aggregate health grants should be distributed among the eligible states and the Northern Territory, taking into account the prescribed amounts as defined in the Act and adjusted based on Commonwealth tax collections. The distribution process incorporates findings from the Commonwealth Grants Commission and allows for potential variations by the Treasurer as per the regulations. Notably, South Australia and Tasmania are excluded from the health grants distribution for the years 1982-83 and 1983-84 but are included in the distribution for the year 1984-85.
Key Provisions
The primary operative sections of these regulations are found in sub-section 19(1) and 19(2) of the States (Tax Sharing and Health Grants) Act 1981, which detail the distribution of aggregate health grants among the states and territories. Specifically, sub-section 19(1) pertains to the distribution of health grants for the financial years 1982-83 and 1983-84, while sub-section 19(2) covers the distribution for the financial year 1984-85. These sections are complemented by sub-sections 16(1) and 18(1) and 18(2), which define the aggregate health grants payable for the respective financial years. Sub-section 16(2) and 18(2) further specify the prescribed amounts for each state and territory, and how these amounts are to be adjusted or calculated based on the growth in Commonwealth tax collections.
The obligations and requirements imposed by these regulations primarily involve the Treasurer and the relevant state and territory governments. The Treasurer must ensure that the aggregate health grants are distributed according to the prescribed amounts and adjustments as outlined in the regulations. The states and territories are required to comply with the distribution mechanisms and calculations set out in the Act and the regulations. This includes adhering to the adjustments based on the Commonwealth tax collection growth rates and any findings of the Commonwealth Grants Commission.
Failure to comply with the provisions of these regulations may result in legal consequences. While the explanatory statement does not explicitly outline the penalties for non-compliance, breaches of statutory requirements under the States (Tax Sharing and Health Grants) Act 1981 could potentially lead to enforcement actions by the Commonwealth. These actions might include financial penalties, legal proceedings, or other administrative measures as deemed necessary to enforce compliance. The exact penalties would be determined by the relevant courts or tribunals, taking into account the specific circumstances of the breach.