States Grants (Special Assistance) Act 1962

States Grants (Special Assistance) Act 1962

This is a short, straightforward piece of financial legislation that authorises the Commonwealth of Australia to hand money directly to two States — Western Australia and Tasmania — as special financial assistance.

What does it do?

• Grants a lump sum to each of the two States for the 1962–63 financial year:
  • Western Australia: £6,210,000
  • Tasmania: £5,041,000
  • Total: £11,251,000
• Any money already paid to these States under the previous year's equivalent Act (the 1961 version) is deducted from what they receive — so there's no double-dipping.
• Allows the Federal Treasurer to make early advance payments (up to half of each State's entitlement) during the first six months of the following financial year (July–December 1963), giving the States cash flow before the next round of grants is finalised.
• The money comes out of the Consolidated Revenue Fund (the Commonwealth's main pool of public money), which this Act formally authorises ("appropriates") for that purpose.

Who does it affect?

Primarily the governments of Western Australia and Tasmania, which at the time were considered to be in weaker financial positions than other States. These "special assistance" grants were part of a broader Commonwealth mechanism to help less financially capable States meet their spending needs — a form of fiscal equalisation (balancing out the financial differences between States).