An Act to provide for grants to the States, the Northern Territory and the Australian Capital Territory, and for related purposes
Part 1—Preliminary
1 Short title [see Note 1]
This Act may be cited as the States Grants (General Purposes) Act 1994.
2 Commencement [see Note 1]
This Act commences on the day on which it receives the Royal Assent.
3 Application of Act to a grant year
(1) In this Act, a reference, in relation to a grant year, to the applicable Schedule is a reference to the Schedule that is expressed to relate to that year.
(2) The provisions set out in a Schedule apply in relation to the grant year to which the Schedule relates.
4 Interpretation
(1) In this Act, unless the contrary intention appears:
adjusted population, in relation to a State and a grant year, means the estimated population of the State on 31 December in that year (see subsection 8(1)) multiplied by the relativities factor for the State for that year.
Competition Agreement means the Agreement to Implement the National Competition Policy and Related Reforms executed at the Council of Australian Governments on 11 April 1995.
Commonwealth surcharge means the variation effected by a Surcharge Act in the rate of duty of customs or excise payable on specified goods or in the rate of sales tax applicable to specified taxable dealings (as the case may be).
Education Minister means the Minister for Employment, Education and Training.
grant year means:
(a) the financial year commencing on 1 July 1994; and
(b) each succeeding financial year.
grant year calculation quarter, in relation to a grant year, means a period of 3 months ending on 30 June immediately before the commencement of the grant year or on 30 September, 31 December or 31 March in the grant year.
Health Minister means the Minister for Health and Family Services.
index factor for a grant year means the factor worked out under section 6.
index number, for a grant year calculation quarter or a previous year calculation quarter, means the All Groups Consumer Price Index number, being the weighted average of the 8 capital cities, published by the Statistician in respect of that quarter.
population factor for a grant year means the factor worked out under section 7.
previous year, in relation to a grant year, has the meaning given by the applicable Schedule.
previous year calculation quarter, in relation to a grant year, means a period of 3 months ending on 30 June immediately before the commencement of the previous year or on 30 September, 31 December or 31 March in the previous year.
relativities factor for a State for a grant year is the factor set out in the applicable Schedule.
Sales Tax (Surcharge) Acts means the following Acts:
(a) the Sales Tax (Customs) (Alcoholic Beverages) Act 1997;
(b) the Sales Tax (Excise) (Alcoholic Beverages) Act 1997;
(c) the Sales Tax (General) (Alcoholic Beverages) Act 1997.
Note: These Acts increase the rates of tax that apply to taxable dealings with the following goods:
(a) goods covered by Item 1 of Schedule 7 to the Sales Tax (Exemptions and Classifications) Act 1992;
(b) beer, spirits, liqueurs or spirituous liquors;
(c) beverages that contain beer, spirits (other than spirits for fortifying wine or other beverages), liqueurs or spirituous liquors.
Secretary means the Secretary of the Department.
State includes the Northern Territory and the Australian Capital Territory.
Statistician means the Australian Statistician.
Surcharge Acts means the following Acts:
(a) the Customs Tariff Amendment Act (No. 3) 1997;
(b) the Excise Tariff Amendment Act (No. 3) 1997;
(c) the Sales Tax (Surcharge) Acts;
(d) any Act that varies:
(i) the rate of the duty of customs payable on goods falling to subheadings of Chapter 24 or 27 of the Customs Tariff Act 1995; or
(ii) the rate of the duty of excise payable on goods falling to items 6, 7, 8 or 11 of the Schedule to the Excise Tariff Act 1921; or
(iii) the rate of sales tax applicable to any of the taxable dealings to which the Sales Tax (Surcharge) Acts relate;
and is prescribed for the purposes of this definition.
Note 1: The Customs Tariff Amendment Act (No. 3) 1997 increases the rate of the duty of customs payable on goods falling to certain subheadings of Chapters 24 and 27 of Schedule 3 to the Customs Tariff Act 1995. The relevant subheadings of Chapter 24 deal with tobacco and manufactured tobacco substitutes. The relevant subheadings of Chapter 27 deal with petroleum products.
Note 2: The Excise Tariff Amendment Act (No. 3) 1997 increases the rate of the duty of excise payable on goods falling to items 6, 7, 8 and 11 in the Schedule to the Excise Tariff Act 1921. Items 6, 7 and 8 in that Schedule deal with tobacco, cigars and cigarettes. Item 11 deals with petroleum products.
Torres Strait Treaty means the Treaty between Australia and the Independent State of Papua New Guinea concerning Sovereignty and Maritime Boundaries in the area between the 2 countries, including the area known as Torres Strait, and Related Matters, signed at Sydney, Australia on 18 December 1978.
Note: The text of the Treaty is set out in the Australian Treaty Series 1985 No. 4.
(2) If, at any time after the publication of an index number for a grant year calculation quarter ending on 31 March in the grant year, the Statistician publishes an index number for a grant year calculation quarter or a previous year calculation quarter in substitution for an index number previously published by the Statistician for the last‑mentioned quarter, the publication of the later index number is to be disregarded for the purposes of this Act.
5 Hospital grants
(1) In this Act, a reference to a hospital grant for a State in respect of a grant year is a reference to an amount worked out using the formula:
Image unavailable in extracted text
where:
RCC (reduction in certain circumstances) means the amount determined by the Health Minister before 10 June in the grant year to be the estimate of the reduction in the amount otherwise payable to the State during the grant year under a health care grant (being a reduction required by the conditions of the grant).
SDA (sum of deductible amounts) means the amount determined by the Health Minister before 10 June in the grant year to be the estimate of such part of TAP as is the sum of the following amounts:
(a) the sum of the deductible amounts payable to the State during the grant year;
(b) the sum of the deductible amounts payable to a hospital, or to another person, during the grant year, being amounts that would have been payable to the State had the Health Minister been satisfied that the State was adhering to the principles set out in subsection 6(2) of the Health Care (Appropriation) Act 1998.
TAP (total amount payable) means the amount determined by the Health Minister before 10 June in the grant year to be the estimate of the sum of the following amounts:
(a) the amount payable to the State during the grant year under a health care grant;
(b) the amount payable to a hospital, or to another person, during the grant year under a health care grant, being an amount that would have been payable to the State had the Health Minister been satisfied that the State was adhering to the principles set out in subsection 6(2) of the Health Care (Appropriation) Act 1998.
(2) For the purposes of this section:
deductible amounts are amounts that relate to the following:
(a) mental health services;
(b) projects or programs of a kind referred to in paragraph 4(1)(b) of the Health Care (Appropriation) Act 1998;
(c) the critical and urgent treatment incentive program;
(d) the recognition of special demands arising from the Torres Strait Treaty;
(e) the transition from a 1993‑98 Medicare Agreement to another agreement or arrangement between the Commonwealth and a State, being an agreement or arrangement that specifies conditions applying to health care grants;
(f) a service, project or program, or a component of a health care grant, that is determined by the Health Minister to be a service, project, program or component in relation to which an amount payable is to be treated as a deductible amount.
health care grant means a grant of financial assistance under section 4 of the Health Care (Appropriation) Act 1998.
6 Index factor
The index factor for a grant year is the factor worked out using the formula:
Image unavailable in extracted text
where:
grant year index numbers means the sum of the index numbers for the grant year calculation quarters.
previous year index numbers means the sum of the index numbers for the previous year calculation quarters.
7 Population factor
The population factor for a grant year is the factor worked out using the formula:
Image unavailable in extracted text
where:
total estimated population (grant year) means the sum of the estimated populations of the States on 31 December in the grant year (see subsection 8(1)).
estimated total population (previous year) means the estimated total population of the States on 31 December in the previous year (see subsection 8(2)).
8 Determination of population of a State
(1) A reference in this Act to the estimated population of a State on 31 December in a grant year is a reference to the population of the State on that date as determined by the Statistician after that date and before 10 June in the grant year.
(2) A reference in this Act to the estimated total population of the States on 31 December in the year previous to the grant year is a reference to the total population of the States on that date as determined by the Statistician after that date and before 10 June in the grant year.
(3) In making a determination under this section, the Statistician must:
(a) if practicable, consult with the official Statistician of each State concerned; and
(b) have regard to the latest statistics in relation to population available to the Statistician on the day on which the determination is made.
Part 2—Grants to the States
Division 1—General revenue grants
9 Financial assistance grants
Subject to this Act, each State is entitled to the payment by way of financial assistance, in relation to a grant year, of a financial assistance grant worked out using the formula:
Image unavailable in extracted text – SHG
where:
ASP (adjusted State population) means the adjusted population of the State for the grant year.
BAA (base assistance amount) means the base assistance amount set out in the applicable Schedule.
IF (index factor) means the index factor for the grant year.
PF (population factor) means the population factor for the grant year.
THG (total hospital grants) means the sum of the hospital grants for all the States in respect of the grant year (see section 5).
ATP (adjusted total population) means the sum of the adjusted populations of all of the States for the grant year.
SHG (State hospital grant) means the hospital grant for the State in respect of the grant year (see section 5).
10 Competition Agreement: per capita growth deductions
The Treasurer may deduct from the amount of financial assistance grant payable to a State under section 9 in relation to a grant year:
(a) an amount that does not exceed; or
(b) amounts that in total do not exceed;
the amount that may be deducted under the applicable Schedule.
Note: This provision is enacted pursuant to the Competition Agreement. Under that Agreement, the per capita component of growth in the pool of financial assistance grants is payable subject to the States complying with the conditions set out in the Agreement.
11 Payments in relation to excess State fiscal contributions
(1) This section applies if the amounts (fiscal contribution payment) paid, or taken (under this Act or any other Acts) to have been paid, by a State in the grant year commencing on 1 July 1997 in satisfaction of the State’s 1997‑98 fiscal contribution (within the meaning of section 15B) exceed the amount of the State’s 1997‑98 fiscal contribution.
(2) The Treasurer may pay an amount of financial assistance to the State in the grant year commencing on 1 July 1997 or 1 July 1998 which is equal to the amount by which the State’s fiscal contribution payments exceed the amount of the State’s 1997‑1998 fiscal contribution.
11AA Payments in relation to excess State fiscal contributions—1998‑99
(1) This section applies if the amounts paid, or taken (under this Act or any other Act) to have been paid, by a State during the grant year commencing on 1 July 1998 in satisfaction of the State’s 1998‑99 fiscal contribution (within the meaning of section 15C), exceed the amount of the State’s 1998‑99 fiscal contribution.
(2) The Treasurer may pay an amount by way of financial assistance to the State during the grant year commencing on 1 July 1998, or during the next grant year, that is equal to the amount of the excess.
11A Revenue replacement payments
Subject to this Act, each State is to be paid by way of financial assistance, in relation to a grant year, a revenue replacement payment worked out in accordance with the applicable Schedule.
Subject to this Act, each State is to be paid by way of financial assistance, in relation to a grant year, a franchise fees windfall tax reimbursement payment worked out in accordance with the applicable Schedule.
12 Special revenue assistance grants
(1) Subject to this Act, each State is to be paid, by way of financial assistance, in relation to a grant year, an amount worked out using the formula:
base amount index factor population factor
where:
base amount means the base amount set out in the applicable Schedule.
(2) The application of the formula may result in a State not receiving any amount under this section in relation to the grant year.
12A Competition Agreement: competition payments
Subject to this Act, the Treasurer may pay by way of financial assistance to a State, in relation to a grant year:
(a) an amount that does not exceed; or
(b) amounts that in total do not exceed;
the maximum amount that may be paid to that State under the applicable Schedule.
Note: This provision is enacted pursuant to the Competition Agreement.
Under that Agreement, the Commonwealth undertakes to provide financial assistance by way of general purpose payments to the States over a period beginning on 1 July 1997 subject to the States complying with the conditions set out in the Agreement.
12B Overpayment of grant
If a State has been paid an amount in excess of the amount that, under a provision of this Act, it was entitled to receive by way of financial assistance in relation to a grant year, the Treasurer may deduct an amount equal to the excess from any amount that the State is entitled to receive by way of financial assistance in relation to the year immediately following the grant year.
13 Reduction of general revenue grants to States to take account of certain advance payments
The total amount that would be payable to a State under this Division in relation to a grant year is to be reduced by the total amount of advances in respect of the grant year paid under section 17.
Division 2—Conditions on which grants made
14 State contribution to costs of higher education superannuation
(1) Financial assistance to which a State is entitled under this Act in relation to a grant year is granted on the condition that the State will pay to the Commonwealth the amount (if any) determined by the Education Minister on or before 31 March in the grant year as representing the State’s share of the costs of any unfunded superannuation liabilities of higher education institutions in the State, being liabilities required to be discharged during the grant year.
(2) The amount to be determined under subsection (1) in relation to a State is the amount worked out using the formula:
(ETP SRC) + (UHESL – [ET + AA])
where:
ETP (estimated total payments) means the estimated total of the payments required to be made during the grant year in discharge of unfunded superannuation liabilities of higher education institutions in the State attributable to service before 1 January 1974.
SRC (State recurrent costs) means the fraction representing, as nearly as is practicable, the proportion of the recurrent costs of higher education in the State borne by the State in the period during which service before 1 January 1974 was being performed.
UHESL (unfunded higher education superannuation liabilities) means the estimated total of the payments required to be made during the grant year in discharge of unfunded superannuation liabilities of higher education institutions in the State attributable to service on or after 1 January 1982.
ET (estimated total) means the amount that would be the estimated total of such payments if the benefits provided under superannuation schemes under which those liabilities arise were reduced to a level that could be financed by a long‑term employer contribution at the rate of 14% of members’ salaries.
AA (additional amount) means any amount that the Education Minister determines is appropriate having regard to relevant industrial awards relating to superannuation.
(3) The Treasurer may, at any time after 31 May in the grant year, deduct from a payment due to a State under this Act, in respect of the grant year or a later year, any amount that is payable by the State to the Commonwealth under subsection (1) and remains unpaid.
(4) An amount deducted under subsection (3) from a payment due to a State is taken to have been paid by the State to the Commonwealth under subsection (1).
(5) In this section:
higher education institution has the same meaning as in the Employment, Education and Training Act 1988.
unfunded superannuation liabilities, in relation to higher education institutions in a State, means unfunded superannuation liabilities in relation to higher education under superannuation schemes conducted by the State.
15 Higher education funding condition
(1) Financial assistance to which a State is entitled under this Act in relation to the grant year is granted on condition that the State will pay to the Commonwealth an amount equal to the sum of the amounts (if any) that have been paid by the Commonwealth under section 25A or 25B of the Higher Education Funding Act 1988 during the grant year as a direct or indirect consequence of the actions of that State.
(2) The Treasurer may, at any time after 31 May in the grant year, deduct from a payment due to a State under this Act, in respect of the grant year or a later year, an amount that is payable by the State to the Commonwealth under subsection (1) and remains unpaid.
(3) An amount deducted under subsection (2) from the payment due to a State is taken to have been paid by the State to the Commonwealth under subsection (1).
15A State fiscal contribution—1996‑97
(1) Financial assistance to which a State is entitled under section 9 (financial assistance grant) in relation to the grant year commencing on 1 July 1996 is granted on condition that the State will pay to the Commonwealth an amount of fiscal contribution (1996‑97 fiscal contribution) worked out in accordance with the applicable Schedule.
(2) The Treasurer may deduct from any amount payable under this Act in respect of the financial assistance grant to the State for the grant year commencing on 1 July 1996 an amount that, together with the amounts (if any) paid, or taken (under this Act or any other Act) to have been paid, by the State in satisfaction of the State’s 1996‑97 fiscal contribution, does not exceed the amount of that contribution.
(3) If part of the State’s 1996‑97 fiscal contribution remains unpaid on 1 July 1997, the Treasurer may deduct from any amount payable under this Act in respect of the financial assistance grant to the State for the grant year commencing on 1 July 1997 an amount that, together with the amounts (if any) paid, or taken (under this Act or any other Act) to have been paid, by the State in satisfaction of the State’s 1996‑97 fiscal contribution, does not exceed the amount of that contribution.
(4) An amount deducted under subsection (2) or (3) from the State’s financial assistance grant is taken to have been paid by the State to the Commonwealth in satisfaction of the State’s 1996‑97 fiscal contribution.
15B State fiscal contribution—1997‑98
(1) Financial assistance to which a State is entitled under section 9 (financial assistance grant) in relation to the grant year commencing on 1 July 1997 is granted on condition that the State will pay to the Commonwealth an amount of fiscal contribution (1997‑98 fiscal contribution) worked out in accordance with the applicable Schedule.
(2) The Treasurer may deduct from any amount payable under this Act in respect of the financial assistance grant to the State for the grant year commencing on 1 July 1997 an amount that, together with the amounts (if any) paid, or taken (under this Act or any other Act) to have been paid, by the State in satisfaction of the State’s 1997‑98 fiscal contribution, does not exceed the amount of that contribution.
(3) If part of the State’s 1997‑98 fiscal contribution remains unpaid on 1 July 1998, the Treasurer may deduct from any amount payable under this Act in respect of the financial assistance grant to the State for the grant year commencing on 1 July 1998 an amount that, together with the amounts (if any) paid, or taken (under this Act or any other Act) to have been paid, by the State in satisfaction of the State’s 1997‑98 fiscal contribution, does not exceed the amount of that contribution.
(4) An amount deducted under subsection (2) or (3) from the State’s financial assistance grant is taken to have been paid by the State to the Commonwealth in satisfaction of the State’s 1997‑98 fiscal contribution.
15C State fiscal contribution—1998‑99
(1) Financial assistance to which a State is entitled under section 9 (a financial assistance grant) in relation to the grant year commencing on 1 July 1998 is granted on condition that the State will pay to the Commonwealth an amount of fiscal contribution (1998‑99 fiscal contribution) worked out in accordance with the applicable Schedule.
(2) The Treasurer may deduct from a financial assistance grant to a State in relation to the grant year commencing on 1 July 1998:
(a) an amount that does not exceed the unpaid amount of the State’s 1998‑99 fiscal contribution; and
(b) if part of the State’s 1997‑98 fiscal contribution (within the meaning of section 15B) remained unpaid on 1 July 1998—an amount that does not exceed the unpaid amount of the State’s 1997‑98 fiscal contribution.
(3) An amount deducted under subsection (2) is taken to have been paid by the State to the Commonwealth in satisfaction of whichever of the following fiscal contributions is applicable:
(a) if the amount was deducted under paragraph (2)(a)—the State’s 1998‑99 fiscal contribution;
(b) if the amount was deducted under paragraph (2)(b)—the State’s 1997‑98 fiscal contribution.
(4) A reference in this section to an unpaid amount of a State’s fiscal contribution for a grant year does not include a reference to an amount taken (under this Act or any other Act) to have been paid by the State in satisfaction of the State’s fiscal contribution for the grant year.
Part 3—Miscellaneous
16 Advance payments for grant year
The Treasurer may make advances to a State of portions of the amount or amounts to which it appears to the Treasurer the State will be entitled under this Act in relation to a grant year.
17 Advance payments for succeeding year
(1) The Treasurer may, during the period of 6 months commencing on 1 July immediately after the end of a grant year, make payments to a State of amounts not exceeding in total 55% of the sum of the amounts payable to the State under this Act in relation to the grant year.
(2) The sum of the amounts paid under subsection (1) must not exceed 50% of the total amount payable under this Act in relation to the grant year.
(3) The operation of section 13 is to be disregarded:
(a) in working out, for the purposes of subsection (1), the sum of the amounts payable to a State in relation to the grant year; and
(b) in working out, for the purposes of subsection (2), the total amount payable under this Act in relation to the grant year.
(4) In working out:
(a) for the purposes of subsection (1), the sum of the amounts payable to a State in relation to the grant year commencing on 1 July 1997; and
(b) for the purposes of subsection (2), the total amount payable under this Act in relation to that grant year;
the revenue replacement payment made to a State in relation to that grant year is taken to be the amount worked out by using the formula:
Image unavailable in extracted text
where:
AA (actual amount) means the amount of the revenue replacement payment worked out in accordance with clause 5 in Schedule 4 in relation to that State.
18 Treasurer may fix amounts, and times of payments, of financial assistance
Financial assistance payable to a State under this Act is to be paid in such amounts, and at such times, as the Treasurer determines in writing.
19 Appropriation
Payments under this Act are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.
20 Delegation by Treasurer
(1) The Treasurer may, by signed writing, delegate to a person holding, or performing the duties of, an office in the Department all or any of the Treasurer’s powers under sections 10, 11, 12A, 14, 15A, 15B, 15C, 16, 17 and 18.
(2) A delegate is, in the exercise of a power so delegated, subject to the Treasurer’s directions.
21 Determinations
A determination made under this Act by:
(a) the Treasurer; or
(b) the Education Minister; or
(c) the Health Minister; or
(ca) the Commissioner of Taxation; or
(cb) the Chief Executive Officer of Customs; or
(cc) the Secretary; or
(d) the Statistician;
is, for the purposes of this Act, conclusively presumed to be correct.
21A Regulations
The Governor‑General may make regulations:
(a) prescribing matters required or permitted by this Act to be prescribed; or
(b) prescribing matters necessary or convenient to be prescribed for carrying out or giving effect to this Act.
22 Repeal of States Grants (General Purposes) Act 1993
(1) The States Grants (General Purposes) Act 1993 is repealed.
(2) Subsection (1) takes effect on 31 December 1994.