{"id":"C1973A00054","name":"Commonwealth Grants Commission Act 1973","slug":"commonwealth-grants-commission-act-1973","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"54 of 1973","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":2545,"registerId":"commonwealth-C1973A00054-current","compilationNumber":null,"startDate":"2026-03-29","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Commonwealth Grants Commission Act 1973.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This Act shall come into operation on a date to be fixed by Proclamation.","sortOrder":1},{"sectionNumber":"4","sectionType":"section","heading":"Interpretation","content":"#### 4 Interpretation\n\n In this Act, unless the contrary intention appears:\n\n> Chairperson means the Chairperson of the Commission.\n\n> Commission means the Commonwealth Grants Commission established by this Act.\n\n> indigenous person means:\n\n (a) a person of the Aboriginal race of Australia; or\n (b) a descendant of an indigenous inhabitant of the Torres Strait Islands.\n\n> local government authority means an authority, established by or under a law of a State, that is, in accordance with provision made by the regulations, a local government authority for the purposes of this Act.\n\n> member means the Chairperson or another member of the Commission appointed under section 8.\n\n> special assistance has the meaning given by section 5.","sortOrder":2},{"sectionNumber":"5","sectionType":"section","heading":"Meaning of special assistance","content":"#### 5 Meaning of special assistance\n\n (1) References in this Act to the grant of special assistance to a State shall be read as references to the grant of financial assistance to a State for the purpose of making it possible for the State, by reasonable effort, to function at a standard not appreciably below the standards of other States.\n (1A) References in this Act to the grant of special assistance to the Australian Capital Territory shall be read as references to the grant of financial assistance to that Territory for the purpose of making it possible for that Territory, having regard to the special circumstances arising from the location in it of the national capital and the seat of Government of the Commonwealth, by reasonable effort, to function in respect of matters for which the Australian Capital Territory Executive has responsibility, at standards not appreciably below the standards of the States and the Northern Territory.\n (2) References in this Act to the grant of special assistance to the Northern Territory shall be read as references to the grant of financial assistance to that Territory for the purpose of making it possible for that Territory, by reasonable effort, to function, in respect of matters for which the Ministers of that Territory have executive authority, at standards not appreciably below the standards of the States.","sortOrder":3},{"sectionNumber":"6","sectionType":"section","heading":"Extension of Act to external Territories","content":"#### 6 Extension of Act to external Territories\n\n This Act extends to:\n (a) the Territory of Heard Island and McDonald Islands; and\n (b) the Territory of Norfolk Island; and\n (c) each of the other external Territories.","sortOrder":4},{"sectionNumber":"7","sectionType":"section","heading":"Establishment of Commonwealth Grants Commission","content":"#### 7 Establishment of Commonwealth Grants Commission\n\n (1) The body by the name of the Grants Commission established by the subsection for which this subsection was substituted by the Commonwealth Grants Commission Act 1976 continues in existence, by force of this subsection, under and subject to the provisions of this Act, under the name Commonwealth Grants Commission.\n (2) The Commission has such functions as are conferred on it by this Act.\n (3) For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the Commission is a listed entity; and\n (b) the Secretary of the Commission is the accountable authority of the Commission; and\n (c) the following persons are officials of the Commission:\n (i) the Chairperson;\n (ii) the other members;\n (iii) the Secretary;\n (iv) persons engaged under the Public Service Act 1999 to assist the Commission; and\n (d) the purposes of the Commission include the functions of the Commission referred to in subsection (2).","sortOrder":5},{"sectionNumber":"8","sectionType":"section","heading":"Membership of Commission","content":"#### 8 Membership of Commission\n\n (1) The Commission shall consist of a Chairperson and not less than 2 other members.\n (2) The members shall be appointed by the Governor‑General.\n (3) A member holds office, subject to this Act, for such period, being not less than one year or more than 5 years, as is specified in the instrument of the member’s appointment, but is eligible for re‑appointment.\n (5) A member may be appointed as a full‑time member or as a part‑time member.\n (5A) A person who is employed by the Commonwealth or by a State in a full‑time capacity is not eligible for appointment as a part‑time member.\n (6) The performance of the functions or the exercise of the powers of the Commission is not affected by reason only of:\n (a) there being a vacancy in the office of Chairperson; or\n (b) the number of other members falling below 2 for a period of not more than 6 months.\n (6A) If the Chairperson was, immediately before the Chairperson’s appointment, a Judge of a Federal Court or of the Supreme Court of a State or Territory, the Chairperson is to have the same designation, rank, status and precedence as a Judge of the Supreme Court of the Australian Capital Territory.","sortOrder":6},{"sectionNumber":"9","sectionType":"section","heading":"Salary and allowances of member who has status of Judge","content":"#### 9 Salary and allowances of member who has status of Judge\n\n If subsection 8(6A) applies to the Chairperson, the Chairperson is to be paid salary, an annual allowance and travelling allowance at such respective rates as are fixed from time to time by the Parliament and such other allowances (if any) as are prescribed.","sortOrder":7},{"sectionNumber":"9A","sectionType":"section","heading":"Remuneration of other members","content":"#### 9A Remuneration of other members\n\n (1) A member, other than a member to whom subsection 8(6A) applies, shall be paid such remuneration as is determined by the Remuneration Tribunal, but, if no determination of that remuneration is in operation, the member is to be paid remuneration at the rate that was applicable immediately before the commencement of this section.\n (2) A member, other than a member to whom subsection 8(6A) applies, shall be paid such allowances as are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Leave of absence","content":"#### 10 Leave of absence\n\n (1) A full‑time member has such recreation leave entitlements as are determined by the Remuneration Tribunal.\n (2) The Minister may grant a full‑time member leave of absence, other than recreation leave, on such terms and conditions as to remuneration or otherwise as the Minister determines.","sortOrder":9},{"sectionNumber":"11","sectionType":"section","heading":"Resignation and retirement","content":"#### 11 Resignation and retirement\n\n (1) A member may resign the member’s appointment by giving the Governor‑General a written resignation.\n (1A) The resignation takes effect on the day it is received by the Governor‑General or, if a later day is specified in the resignation, on that later day.\n (2) The Governor‑General may, with the consent of the member, retire a member from office on the ground of invalidity.","sortOrder":10},{"sectionNumber":"12","sectionType":"section","heading":"Termination of appointments","content":"#### 12 Termination of appointments\n\n (1) The Governor‑General may suspend a member from office for misbehaviour or physical or mental incapacity.\n (2) Where the Governor‑General suspends a member from office, the Minister shall cause a statement of the grounds of the suspension to be laid before each House of the Parliament within 7 sitting days of the House after the suspension.\n (3) Where such a statement has been laid before a House of the Parliament, that House may, within 15 sitting days of that House after the day on which the statement has been laid before it, by resolution, declare that the member ought to be restored to office and, if each House so passes such a resolution, the Governor‑General shall terminate the suspension.\n (4) If, at the expiration of 15 sitting days of a House of the Parliament after the day on which the statement has been laid before that House, that House has not passed such a resolution, the Governor‑General may remove the member from office.\n (4A) If a part‑time member becomes employed by the Commonwealth or by a State in a full‑time capacity, the Governor‑General shall remove the member from office.\n (5) A member shall not be removed from office except as provided by this section.\n (7) A member who is suspended from office under this section is not entitled to be paid any remuneration or allowances in respect of the period of the member’s suspension unless the member is restored to office.","sortOrder":11},{"sectionNumber":"13","sectionType":"section","heading":"Acting members","content":"#### 13 Acting members\n\n (1) Where:\n (a) the Governor‑General suspends the Chairperson from office;\n (b) if the Chairperson is a full‑time member—the Chairperson is, or is expected to be, absent from duty or from Australia; or\n (c) if the Chairperson is a part‑time member—the Chairperson is, or is expected to be, unable (whether on account of illness or otherwise) to perform the duties of the Chairperson’s office;\n the Minister may appoint one of the other members to act as Chairperson on such terms and conditions as the Minister determines, and may also appoint another person to be an acting member, during the suspension, absence or inability, as the case requires.\n (1A) An acting Chairperson may be appointed as an acting full‑time Chairperson or as an acting part‑time Chairperson.\n (2) Where:\n (a) the Governor‑General suspends a member other than the Chairperson from office;\n (b) a full‑time member other than the Chairperson is, or is expected to be, absent from duty or from Australia; or\n (c) a part‑time member is, or is expected to be, unable (whether on account of illness or otherwise) to perform the functions of the part‑time member’s office;\n the Minister may appoint a person to be an acting member during the suspension, absence or inability, as the case requires.\n (3) An acting member may be appointed as an acting full‑time member or as an acting part‑time member.\n (4) An acting member has all the powers, and shall perform all the duties, of a member.\n (5) The Minister may, at any time, terminate an appointment under this section.\n (6) A person appointed an acting member under subsection (1) or (2) holds office on such terms and conditions as the Minister determines.\n (7) Sections 10 and 11 apply in relation to an acting member appointed under this section in like manner as they apply in relation to a member.\n (8) The validity of an act done by the Commission shall not be questioned in any proceedings on a ground arising from the fact that the occasion for the appointment of a person purporting to be appointed under this section had not arisen or that an appointment under this section had ceased to have effect.","sortOrder":12},{"sectionNumber":"14","sectionType":"section","heading":"Meetings","content":"#### 14 Meetings\n\n (1) The Commission shall hold such meetings as are necessary for the performance of its functions.\n (2) The meetings of the Commission shall be convened by the Chairperson.\n (3) Where the Minister requests the Chairperson to do so, the Chairperson shall forthwith convene a meeting of the Commission.\n (4) At a meeting of the Commission, a quorum is constituted by a majority of the members holding office.\n (5) The Chairperson shall preside at all meetings of the Commission at which the Chairperson is present.\n (6) If the Chairperson is not present at a meeting of the Commission, the members present shall elect one of their number to preside at the meeting.\n (7) Questions arising at a meeting of the Commission shall be determined by a majority of the votes of the members present and voting.\n (8) The Chairperson has a deliberative vote and, in the event of an equality of votes, also has a casting vote.\n (9) In this section, a reference to the Chairperson includes an acting Chairperson.","sortOrder":13},{"sectionNumber":"15","sectionType":"section","heading":"Duties of Chairperson","content":"#### 15 Duties of Chairperson\n\n (1) It is the duty of the Chairperson to ensure the efficient and orderly conduct of the business of the Commission and, for that purpose, the Chairperson has, in addition to any other power, duty or function under this Act, power:\n (a) to determine the form of the records of meetings of the Commission to be kept in accordance with this Act and the procedure to be adopted at such a meeting;\n (b) to determine which members shall take part in a particular inquiry by the Commission; and\n (c) to direct and control travel by members in connection with their duties.\n (2) Where the services of APS employees are made available to the Commission, the use of those services by members of the Commission is subject to the control of the Chairperson.","sortOrder":14},{"sectionNumber":"16","sectionType":"section","heading":"Assistance to States","content":"#### 16 Assistance to States\n\n The Commission shall inquire into and report to the Minister upon:\n (a) any application made by a State for the grant, under section 96 of the Constitution, of special assistance to the State;\n (b) any matters, being matters relating to a grant of assistance made under that section to a State either before or after the commencement of this Act, that are referred to the Commission by the Minister; and\n (c) any matters, being matters relating to the making of a grant of assistance under that section to a State, that are referred to the Commission by the Minister.","sortOrder":15},{"sectionNumber":"16A","sectionType":"section","heading":"Assistance to the Northern Territory","content":"#### 16A Assistance to the Northern Territory\n\n The Commission shall inquire into and report to the Minister upon:\n (a) any application made by the Northern Territory for a grant of special assistance to that Territory;\n (b) any matters, being matters relating to a grant of financial assistance made by the Commonwealth to the Northern Territory, that are referred to the Commission by the Minister; and\n (c) any matters, being matters relating to the making of a grant of financial assistance by the Commonwealth to the Northern Territory, that are referred to the Commission by the Minister.","sortOrder":16},{"sectionNumber":"16AA","sectionType":"section","heading":"Assistance to the Australian Capital Territory","content":"#### 16AA Assistance to the Australian Capital Territory\n\n The Commission shall inquire into and report to the Minister upon:\n (a) any application made by the Australian Capital Territory to the Commission for a grant of special assistance to that Territory;\n (b) any matters, being matters relating to a grant of financial assistance made by the Commonwealth to the Australian Capital Territory, that are referred to the Commission by the Minister; and\n (c) any matters, being matters relating to the making of a grant of financial assistance by the Commonwealth to the Australian Capital Territory, that are referred to the Commission by the Minister.","sortOrder":17},{"sectionNumber":"16AB","sectionType":"section","heading":"Inquiries relating to GST revenue grants","content":"#### 16AB Inquiries relating to GST revenue grants\n\n (1) This section applies to a reference of a matter to the Commission under section 16, 16A or 16AA of this Act, so far as the matter relates to grants of assistance (GST revenue grants) made under Division 1 of Part 2 of the Federal Financial Relations Act 2009 for the 2021‑22 payment year, or a later payment year, within the meaning of that Act.\n\n> Note: An example of a matter referred to in this section is the Minister seeking a recommendation about the GST revenue sharing relativities that the Minister determines for a financial year under section 8 of the Federal Financial Relations Act 2009.\n\n (2) In framing the terms of the reference, the Minister is to pursue the objective of ensuring, consistently with the Federal Financial Relations Act 2009, that the States, the Australian Capital Territory and the Northern Territory each have the fiscal capacity to provide services (including associated infrastructure) at a standard that is at least as high as the standard for whichever of New South Wales and Victoria has the higher standard.\n (3) However, so far as the reference relates to GST revenue grants for any of the first 5 payment years covered by subsection (1), the Minister is to frame the terms of the reference:\n (a) so as to make an appropriate and even transition over those 5 years from the arrangements that applied before those payment years (the previous arrangements) to arrangements based on subsection (2) of this section (the new arrangements); and\n (b) so that the respective GST revenue sharing relativities for the States and Territories that the Minister determines for each of those 5 payment years under section 8 of the Federal Financial Relations Act 2009 can be worked out:\n (i) consistently with the Federal Financial Relations Act 2009; and\n (ii) using the proportion of the relativities derived from the previous arrangements, and the proportion of the relativities derived from the new arrangements, set out in this table:\n\n```html\n

Transitional proportions

Item

Payment year

Proportion of the relativities derived from the previous arrangements

Proportion of the relativities derived from the new arrangements

1

the 2021‑22 payment year

5/6

1/6

2

the 2022‑23 payment year

4/6

2/6

3

the 2023‑24 payment year

3/6

3/6

4

the 2024‑25 payment year

2/6

4/6

5

the 2025‑26 payment year

1/6

5/6

\n```","sortOrder":18},{"sectionNumber":"16B","sectionType":"section","heading":"Inquiries relating to Jervis Bay Territory","content":"#### 16B Inquiries relating to Jervis Bay Territory\n\n The Commission must inquire into and report to the Minister upon any matters, being matters relating to the financing of works and services provided by the Commonwealth or an authority of the Commonwealth in respect of the Jervis Bay Territory, that are referred to the Commission by the Minister.","sortOrder":19},{"sectionNumber":"16D","sectionType":"section","heading":"Inquiries relating to external Territories","content":"#### 16D Inquiries relating to external Territories\n\n The Commission must inquire into and report to the Minister upon any matters, being matters relating to the financing of works and services provided by the Commonwealth or an authority of the Commonwealth in respect of a particular external Territory, that are referred to the Commission by the Minister.","sortOrder":20},{"sectionNumber":"17","sectionType":"section","heading":"Assistance to States for local government purposes","content":"#### 17 Assistance to States for local government purposes\n\n (1) The Commission shall inquire into and report to the Minister upon any matters:\n (a) being matters relating to the making of a grant of assistance to a State, under section 96 of the Constitution, for local government purposes; or\n (b) being matters relating to a grant of assistance made to a State, under section 96 of the Constitution, for local government purposes;\n that are referred to the Commission by the Minister.\n (2) In subsection (1), a reference to a grant of assistance to a State for local government purposes shall be read as a reference to a grant of moneys to the State for the purpose of being applied by the State in payments to local government authorities situated in the State, or by way of expenditure for purposes declared by the regulations to be purposes to which this subsection applies.","sortOrder":21},{"sectionNumber":"18","sectionType":"section","heading":"Inquiries relating to indigenous persons","content":"#### 18 Inquiries relating to indigenous persons\n\n (1) The Commission must inquire into and report to the Minister upon any matters that the Minister refers to the Commission relating to:\n (a) works and services in respect of indigenous persons that are provided or funded (directly or indirectly) by the Commonwealth or an authority of the Commonwealth; or\n (b) a grant of financial assistance under section 96 of the Constitution to a State for the purpose of being applied by the State, or an authority of the State, to pay for works and services in respect of indigenous persons in the State; or\n (c) a grant of financial assistance made by the Commonwealth to a Territory, or an authority of the Territory, for the purpose of being applied by the Territory or the authority to pay for works and services in respect of indigenous persons in the Territory.\n (2) Subsection (1) applies whether or not:\n (a) the works or services are provided or funded exclusively in respect of Indigenous persons; or\n (b) the financial assistance is applied exclusively in respect of Indigenous persons.","sortOrder":22},{"sectionNumber":"19","sectionType":"section","heading":"Inquiries by Commission","content":"#### 19 Inquiries by Commission\n\n (1) Where the Commission is required to inquire into and report upon an application or matter, the Chairperson may determine in writing that the powers of the Commission under this Act may, for the purposes of the inquiry and report on that application or matter or on such part of that application or matter as is specified in the determination, be exercised by a Division of the Commission constituted, subject to subsection (3), by such members as are specified in the determination.\n (2) Where the Chairperson has made a determination under subsection (1) the Chairperson may, in writing, at any time before the Division of the Commission specified in the determination has completed the inquiry and report, revoke the determination or, subject to subsection (3), amend the determination in relation to the membership of the Division or in any other respect, and, where the membership of the Division of the Commission is changed, the Division as constituted after the change may complete the inquiry and report.\n (2A) A determination made under subsection (1) is not a legislative instrument.\n (3) A Division of the Commission exercising the powers of the Commission in respect of an application or matter shall consist of the Chairperson and not less than 2 other members.\n (4) For the purposes of an inquiry and report on an application or matter, or on a part of an application or matter, specified in a determination under subsection (1), the Commission shall be deemed to consist of the Division of the Commission specified in the determination.\n (5) At a meeting of a Division of the Commission:\n (a) if the Chairperson is present—the Chairperson shall preside; or\n (b) in any other case—a member of the Division appointed for the purpose by the Chairperson shall preside.\n (6) At a meeting of a Division of the Commission, a majority of the members constituting the Division form a quorum.\n (7) The Chairperson has, at a meeting of a Division of the Commission, a deliberative vote and, in the event of an equality of votes, also a casting vote.\n (8) A meeting of a Division of the Commission may be held notwithstanding that a meeting of another Division of the Commission is being held at the same time.","sortOrder":23},{"sectionNumber":"20","sectionType":"section","heading":"Commission may take evidence","content":"#### 20 Commission may take evidence\n\n (1) Where an application or matter is referred to the Commission under this Act, the Commission may, for the purpose of inquiring into the application or matter, take evidence from persons who appear as witnesses before the Commission.\n (2) Subsection (1) does not prevent the Commission from inquiring into an application or matter in such other manner as it sees fit.","sortOrder":24},{"sectionNumber":"21","sectionType":"section","heading":"Evidence to be on oath","content":"#### 21 Evidence to be on oath\n\n The evidence given by a witness appearing before the Commission shall be given on oath or affirmation.","sortOrder":25},{"sectionNumber":"22","sectionType":"section","heading":"Administration of oath","content":"#### 22 Administration of oath\n\n A member may administer an oath or affirmation to a person appearing as a witness before the Commission.","sortOrder":26},{"sectionNumber":"23","sectionType":"section","heading":"Penalty for refusing to give evidence","content":"#### 23 Penalty for refusing to give evidence\n\n (1) Where the Commission takes evidence in the course of inquiry into a matter, a person appearing as a witness before the Commission shall not, without lawful excuse, refuse or fail to answer a question, being a question relevant to the inquiry, that is put to the person by the Commission.\n\nPenalty: 10 penalty units.\n\n (2) For the purposes of subsection (1), a question shall be deemed to have been put to a witness by the Commission:\n (a) if it is put by any of the members who are exercising the powers of the Commission in relation to the matter; or\n (b) if, with the approval of a majority of the members who are exercising the powers of the Commission in relation to the matter, it is put by a person authorized by a majority of those members to appear in connexion with the taking of the evidence.","sortOrder":27},{"sectionNumber":"24","sectionType":"section","heading":"Giving false evidence","content":"#### 24 Giving false evidence\n\n A person shall not, in the course of giving evidence before the members of the Commission who are exercising the powers of the Commission in relation to a matter, make a statement that the person knows to be false or misleading in a material particular.\n\nPenalty: Imprisonment for 5 years.","sortOrder":28},{"sectionNumber":"25","sectionType":"section","heading":"Reports to be laid before Parliament","content":"#### 25 Reports to be laid before Parliament\n\n (1) The Minister may cause a report made by the Commission under section 16, 16A, 16B, 16D, 17 or 18 to be laid before each House of the Parliament.\n (2) Before a proposed law relating to the subject of a report made by the Commission under section 16, 16A, 16AA, 16B, 16D, 17 or 18 is introduced into the Parliament, the Minister shall cause the report to be laid before each House of the Parliament.\n (3) The Minister may cause to be attached to a report of the Commission that is laid before the Houses of the Parliament under this section such statement, recommendation or comment by the Minister as the Minister thinks proper.","sortOrder":29},{"sectionNumber":"27","sectionType":"section","heading":"Regulations","content":"#### 27 Regulations\n\n The Governor‑General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed or which are necessary or convenient to be prescribed for carrying out or giving effect to this Act, and, in particular, for regulating the practice and procedure of the Commission.","sortOrder":30}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The provided text establishes the Commission and sets out its functions and procedures (notably ss7 and 16–18). It does not include provisions that alter or narrow the Commission’s originally stated remit; instead it defines roles, powers and transitional arrangements (e.g. s16AB) without removing previously conferred functions."},"complexity_factors":["Cross‑references to other laws and constitutional grants (section 16 references s96 of the Constitution; section 16AB references the Federal Financial Relations Act 2009).","Multiple and overlapping subject‑matter jurisdictions (States, Northern Territory, Australian Capital Territory, external Territories, Jervis Bay, local government and indigenous services) (ss5, 6, 16, 16A, 16AA, 16B, 16D, 17, 18).","Detailed membership, appointment, suspension and removal regime with time limits and parliamentary involvement (ss8, 11, 12, 13).","Division-based inquiry mechanism allowing subsets of members to act with delegated powers and its procedural rules (s19).","Evidence and enforcement powers including oath/affirmation, penalty units for refusal and imprisonment for false evidence (ss20–24).","Transitional arrangements for GST revenue relativities with a multi‑year proportional table creating phased implementation complexity (s16AB).","Chairperson and Minister discretions over meetings, inquiries, composition of Divisions, and procedural control (ss14, 15, 19, 27).","Regulation‑making power to prescribe practice and procedure, which delegates considerable detail outside the Act (s27)."],"plain_english_summary":"This Act creates the Commonwealth Grants Commission, sets its membership, powers and procedures, and requires it to inquire into and report on requests for Commonwealth financial assistance to States, Territories and local government-related matters. It defines \"special assistance\" and gives the Commission powers to take evidence, hold inquiries and report to the Minister on grants and financing matters. It affects Commonwealth and State governments, Territories, local government authorities and persons served by funded programs because its reports inform how federal funding is recommended and allocated."},"summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The original 1973 Act focused on grants to States under section 96 of the Constitution. Over time, scope expanded significantly to cover the Northern Territory (after self-government in 1978), the Australian Capital Territory, external territories, Jervis Bay Territory, local government funding, services for Indigenous Australians, and most significantly the distribution of GST revenue following the introduction of the GST in 1999. The 2021–26 GST transition arrangements represent a particularly substantial shift in purpose — from reviewing equity between states to benchmarking against the two wealthiest states."},"complexity_factors":["Interplay with multiple other Acts, particularly the Federal Financial Relations Act 2009 and the Public Governance, Performance and Accountability Act 2013","Different rules for different jurisdictions (States vs Northern Territory vs ACT vs external territories vs Jervis Bay Territory), each with slightly different definitions of 'special assistance'","The GST transitional arrangements in section 16AB involve a mathematical formula with a phased table of proportions across 6 financial years","Constitutional underpinning (section 96 of the Constitution) is assumed knowledge that lay readers won't have","Layered governance structure with full-time/part-time distinctions, acting appointments, and Division-based inquiry procedures","Penalty provisions mixing criminal law (false evidence = 5 years imprisonment) with civil penalties (refusal to answer = 10 penalty units)","Historical amendments have created awkward drafting (e.g., section 7(1) referring to itself as a replacement subsection)"],"plain_english_summary":"The Act establishes the Commonwealth Grants Commission, an independent body that advises the federal government on how Commonwealth revenue—notably GST—should be shared so states and territories can provide comparable public services. \n\nIts work affects all Australians but matters most for smaller, less wealthy or special-status jurisdictions (e.g. Tasmania, NT, ACT), because it seeks to equalise fiscal capacity and maintain service standards nationwide."},"kimi_summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":true,"description":"The original 1973 Act established a body to advise on 'special assistance' grants to states under section 96 of the Constitution. Over 50 years, the scope has expanded significantly: (1) Coverage extended from just States to include ACT (1970s), Northern Territory (1970s), and external territories; (2) Specific inquiry powers added for local government (section 17), indigenous persons (section 18), Jervis Bay Territory (section 16B), and external territories (section 16D); (3) Most significantly, section 16AB (added later) transformed the Commission into the key advisor for GST revenue sharing relativities, involving complex transitional mathematics. The Act has evolved from a simple grants advisory body into the central mechanism for Australia's intergovernmental fiscal equalisation system."},"complexity_factors":["Multiple overlapping inquiry powers across 8 different sections (16, 16A, 16AA, 16AB, 16B, 16D, 17, 18) with slightly different scopes","Section 16AB contains a detailed 5-year transitional table with fractional weightings (5/6, 4/6, etc.) for GST revenue calculations","Cross-references to external legislation: Constitution section 96, Federal Financial Relations Act 2009, Public Governance, Performance and Accountability Act 2013, Public Service Act 1999, Remuneration Tribunal Act 1973","Conditional membership rules: distinction between full-time/part-time members, judicial status members (section 8(6A)), and acting appointments (section 13)","Complex suspension/removal procedure for members requiring parliamentary involvement (section 12: 7 sitting days for statement, 15 sitting days for resolution)","Divisional structure allowing the Commission to split into sub-panels (section 19) with quorum and voting rules","6 defined terms in interpretation section, but 'special assistance' has a 3-part definition with distinct tests for States, ACT, and Northern Territory"],"plain_english_summary":"This law creates and runs the **Commonwealth Grants Commission** — an independent body that advises the federal government on how to fairly distribute money to states and territories.\n\n**What it does:**\n- **Establishes the Commission** as a permanent body with a Chairperson and at least two other members, appointed by the Governor-General (the Queen's representative in Australia).\n- **Defines \"special assistance\"** — this is extra money given to states or territories so they can provide public services (like hospitals and schools) at a similar standard to other states, without having to tax their residents unfairly hard.\n- **Sets up the Commission's main job**: When a state or territory asks for financial help, or when the Minister asks, the Commission investigates and reports back on whether the money should be granted and how much.\n- **Expands to cover specific areas**:\n - **GST revenue sharing** (Section 16AB): Since 2021, the Commission recommends how to split GST (Goods and Services Tax) money between states, using a complex 5-year transition formula.\n - **Local government funding** (Section 17): Money passed through states to local councils.\n - **Indigenous services** (Section 18): Funding for services for Aboriginal and Torres Strait Islander people.\n - **Territories** (Sections 16A, 16AA, 16B, 16D): Special rules for the Northern Territory, ACT, Jervis Bay, and external territories like Norfolk Island.\n\n**Who it affects:**\n- **State and Territory governments** — they apply for funding and receive recommendations.\n- **The federal Minister** — refers matters to the Commission and decides whether to table reports in Parliament.\n- **Local councils** — indirectly, through state funding assessments.\n- **Indigenous communities** — through specific inquiries into service funding.\n\n**Why it matters:**\nThis is the legal engine behind Australia's **horizontal fiscal equalisation** — the system that tries to ensure a Tasmanian or Northern Territorian gets roughly the same quality of government services as someone in Sydney or Melbourne, even though some states are richer than others. Without this Act, there would be no independent body to work out who needs what."},"issue_detection":{"absurdities":[{"type":"circular_definition","section":"7(1)","severity":"medium","reasoning":"The subsection establishes continuity of the Commission by reference to 'the subsection for which this subsection was substituted'. This creates a circular bootstrapping problem: the legal authority for the Commission's existence is grounded in a legislative provision that has been repealed and replaced by the very provision now purporting to rely on it. While courts would likely treat this as continuous, the drafting creates a logical gap where the original establishment instrument is simultaneously relied upon and replaced.","confidence":0.72,"description":"The Commission's establishment provision is a self-referential paradox: it purports to continue a body 'established by the subsection for which this subsection was substituted', meaning the current subsection references its own predecessor as the source of establishment authority. The body's legal existence depends on a subsection that no longer exists."},{"type":"self_contradicting","section":"8(6) and 8(1)","severity":"medium","reasoning":"The mandatory 'shall consist of' language in s8(1) imposes a firm compositional floor, yet s8(6)(b) expressly preserves the validity of Commission functions when that floor is not met. This is an internal contradiction: the Commission both must and need not have at least 2 non-Chairperson members at the same time.","confidence":0.85,"description":"Section 8(1) requires the Commission to consist of 'not less than 2 other members' (plus the Chairperson), but section 8(6)(b) permits the Commission to function validly when membership falls below 2 for up to 6 months. This means the Commission can legally operate while failing to meet its own mandatory composition requirement."},{"type":"impossible_compliance","section":"19(3)","severity":"medium","reasoning":"Section 19(3) mandates Chairperson participation in every Division. Section 8(6)(a) preserves Commission function during Chairperson vacancy. These provisions conflict: if the Commission can function without a Chairperson (s8(6)(a)) but every Division must include the Chairperson (s19(3)), the Division mechanism is paralysed during any Chairperson vacancy despite the Commission ostensibly remaining functional.","confidence":0.78,"description":"Section 19(3) requires a Division to consist of 'the Chairperson and not less than 2 other members', but section 8(6)(a) permits the Commission to function during a Chairperson vacancy. If there is no Chairperson, a Division as mandated by s19(3) cannot be constituted, creating an impossible compliance scenario for the Chairperson-convening and Division-constituting machinery when the Chairperson's office is vacant."},{"type":"other","section":"5(1A)","severity":"low","reasoning":"The ACT definition acknowledges unique circumstances but does not specify whether those circumstances raise or lower the applicable standard, or in what direction they modify the benchmark. The provision gestures at a special consideration without operationalising it, rendering that element legally inert.","confidence":0.65,"description":"The definition of 'special assistance' for the ACT incorporates 'special circumstances arising from the location in it of the national capital and the seat of Government of the Commonwealth' as a qualifying consideration, yet the standard to be achieved is still 'not appreciably below the standards of the States and the Northern Territory'. The special circumstances are acknowledged but their effect on the standard is undefined, creating a meaningless qualification."},{"type":"self_contradicting","section":"12(3) and 12(4)","severity":"medium","reasoning":"Restoration requires positive resolutions in both Houses (conjunctive). Removal power activates when either House fails to pass a restoration resolution within 15 sitting days. Where one House restores and the other does not, the removal power is technically activated by one House's inaction despite the other House's express contrary resolution, creating a structural contradiction between legislative intent and operational mechanics.","confidence":0.8,"description":"Sections 12(3) and 12(4) create an asymmetric procedural trap: both Houses must resolve to restore the member, but only one House failing to resolve within 15 sitting days is sufficient for the Governor-General to remove. A situation could arise where one House resolves to restore and the other does not pass a resolution within time, leaving the Governor-General empowered to remove a member whom one House has voted to protect."},{"type":"impossible_compliance","section":"6","severity":"low","reasoning":"The Act's operative provisions (ss16-18) are predicated on applications by States and Territories with functioning governments and Executives. Extending the Act to uninhabited or administratively minimal territories creates a legally nominal extension with no practical content, and potentially generates absurd implied obligations.","confidence":0.7,"description":"Section 6 extends the Act to Heard Island and McDonald Islands, Norfolk Island, and 'each of the other external Territories'. These territories have no elected governments, no legislatures, and in the case of Heard Island and McDonald Islands, no permanent population. It is impossible for these territories to apply for special assistance, appoint local government authorities, or engage with the Commission's functions in any meaningful way."},{"type":"other","section":"14(7) and 14(8)","severity":"low","reasoning":"With an odd-numbered quorum and the Chairperson holding a deliberative vote, an equality of votes is arithmetically impossible (3 deliberative votes cannot produce a tie). The casting vote provision only becomes operative at full-Commission meetings when the Chairperson is absent and an even number of members are present — a scenario addressed separately by s14(6). In a Division of minimum size (Chairperson + 2, per s19(3)), again 3 votes make a tie impossible.","confidence":0.75,"description":"Section 14(8) grants the Chairperson both a deliberative vote and, on an equality, a casting vote. In a minimum-composition Commission of 3 members (Chairperson plus 2), if the two non-Chairperson members split 1-1 and the Chairperson votes, there can never be an equality of votes triggering the casting vote — the Chairperson's deliberative vote always breaks the tie. The casting vote is mathematically redundant in the minimum-composition scenario."}],"contradictions":[{"severity":"medium","section_a":"25(1)","section_b":"25(2)","confidence":0.88,"description":"Section 25(1) makes tabling of Commission reports discretionary ('The Minister may cause a report... to be laid before'). Section 25(2) makes tabling mandatory before introduction of related legislation ('the Minister shall cause the report to be laid'). However, s25(1) omits section 16AA from its list of reportable sections while s25(2) includes it, meaning reports under s16AA (ACT assistance) are subject to the mandatory tabling obligation in s25(2) but are excluded from the discretionary tabling power in s25(1), creating an anomaly where the Minister has no discretionary power to table a report but is still obligated to table it before related legislation is introduced."},{"severity":"medium","section_a":"8(5A)","section_b":"13(1) and 13(2)","confidence":0.73,"description":"Section 8(5A) prohibits persons employed by the Commonwealth or a State in a full-time capacity from being appointed as part-time members. However, sections 13(1) and 13(2) allow the Minister to appoint 'another person' or 'a person' as an acting member without expressly applying the s8(5A) eligibility restriction, and s13(3) only provides that acting members may be appointed as full-time or part-time acting members. The eligibility bar is not expressly extended to acting appointments, creating a potential gap where a Commonwealth full-time employee could be appointed as an acting part-time member despite being ineligible for a substantive part-time appointment."},{"severity":"low","section_a":"12(4A)","section_b":"8(5A)","confidence":0.67,"description":"Section 8(5A) renders a Commonwealth or State full-time employee ineligible for appointment as a part-time member. Section 12(4A) mandates removal of a part-time member who becomes so employed. These provisions are consistent in outcome but create an implicit contradiction in timing: between the moment of commencement of full-time employment and the Governor-General's removal, a member simultaneously holds an office for which they are statutorily ineligible. The Act provides no mechanism to address decisions made by the Commission during that interval, unlike the savings provision in s13(8) which only covers procedural defects in acting appointments."},{"severity":"medium","section_a":"19(3)","section_b":"8(6)(b)","confidence":0.82,"description":"Section 19(3) requires every Division to include the Chairperson and at least 2 other members, implying a minimum of 3 members per Division. Section 8(6)(b) allows the Commission to function when non-Chairperson membership falls below 2. If membership falls to 1 other member, a Division cannot be constituted (s19(3) is unsatisfied), yet the Commission's functions are preserved by s8(6)(b). This creates a contradiction between the Commission's preserved functional capacity and its inability to exercise inquiry powers through the Division mechanism."},{"severity":"low","section_a":"14(4)","section_b":"19(6)","confidence":0.6,"description":"Section 14(4) defines a quorum for Commission meetings as 'a majority of the members holding office'. Section 19(6) defines a quorum for a Division meeting as 'a majority of the members constituting the Division'. Where a Division is constituted by fewer members than the full Commission, the Division quorum under s19(6) is lower than the full Commission quorum under s14(4), meaning the same Commission powers can be exercised with a smaller numerical quorum depending on whether a Division has been constituted, raising concerns about whether Division inquiries satisfy the democratic deliberation requirements intended by the full-Commission quorum rule."}]}},"importantCases":[],"_links":{"self":"/api/acts/commonwealth-grants-commission-act-1973","history":"/api/acts/commonwealth-grants-commission-act-1973/history","analysis":"/api/acts/commonwealth-grants-commission-act-1973/analysis","conflicts":"/api/acts/commonwealth-grants-commission-act-1973/conflicts","importantCases":"/api/acts/commonwealth-grants-commission-act-1973/important-cases","documents":"/api/acts/commonwealth-grants-commission-act-1973/documents"}}