States Grants (Drought Reimbursement) Act 1968

States Grants (Drought Reimbursement) Act 1968

This Act allows the Commonwealth (federal) government to provide financial assistance to Victoria and South Australia to help cover the costs those states incurred in responding to drought conditions in the late 1960s.

What does it actually do?

• Reimbursement for drought relief spending: The Commonwealth agrees to pay back (reimburse) money that Victoria and South Australia spent on measures to help people and communities deal with the effects of drought — things like emergency loans to farmers and rural communities.
• Two time periods covered:
  • Before 1 July 1968: Covers drought relief spending from 1 October 1967 to 30 June 1968. Victoria can receive up to $10 million, and South Australia up to $5 million, minus any other Commonwealth drought funding already received in that period.
  • From 1 July 1968 onwards: Further payments can be made, capped at whatever Parliament appropriates (sets aside in the budget) for each state in each financial year.
• Loans count too: If a state lent money to farmers or others for drought relief (rather than just handing out grants), those loan amounts are still counted as part of the state's costs and can be reimbursed.
• Conditions apply: The Commonwealth Treasurer (the federal minister responsible for the budget) can attach whatever conditions they see fit to these payments — including requiring that some or all of the money be paid back to the Commonwealth.