States Grants Act 1939

States Grants Act 1939 — Plain English Summary

This is a short, straightforward piece of legislation that does one simple thing: it authorises the Commonwealth government to pay a total of £2,020,000 to three Australian states — South Australia, Western Australia, and Tasmania — as financial assistance for the 1939–40 financial year.

Who gets what?

The money is divided as follows:

• South Australia — £995,000
• Western Australia — £595,000
• Tasmania — £430,000

How is it paid?

Each state receives its share in equal monthly instalments across the financial year (starting 1 July 1939).

Where does the money come from?

The funds are drawn from the Consolidated Revenue Fund — essentially the Commonwealth's main pool of public money, collected through taxes and other revenue. This Act formally authorises (or "appropriates") that spending, which is a constitutional requirement before the government can legally pay money out.

Why does this matter?

South Australia, Western Australia, and Tasmania were smaller, less populous states that had historically struggled to generate sufficient revenue of their own. Commonwealth grants like this were a vital lifeline, helping these states fund essential services. This Act reflects the broader Commonwealth practice of redistributing national revenue to support fiscal (financial) equity between the states — a tradition that continues today through mechanisms like the GST distribution.