This Act has been repealed and is no longer in force. It is retained for historical reference.
Jurisdiction
Commonwealth
Act Number
45 of 1974
Collection
act
Plain English Summary
5/10 complexity
States Grants (Urban Public Transport) Act 1974 — Plain English Summary
This Act is essentially the Commonwealth's legal "rubber stamp" on a funding deal struck between the Australian Government and all six state governments to upgrade public transport in Australia's major cities.
What does it do?
The Act approves a formal agreement (called an intergovernmental agreement — a contract between different levels of government) signed on 29 March 1974. That agreement sets out how the Commonwealth will hand money to the states to fund specific public transport improvement projects.
The core money deal:
The Commonwealth contributes two-thirds of the cost of each approved project; the state picks up the remaining one-third.
The total Commonwealth contribution was capped at $71.91 million, appropriated (i.e., formally set aside) from the Consolidated Revenue Fund (the main government bank account).
Funding covers financial years from 1973–74 through to 1977–78.
Grants are non-repayable (free money, not loans) — except if a state overspends relative to the formula, they must refund the excess.
Who does it affect?
State governments — they apply for project approval, carry out the works, and must comply with strict reporting, auditing, and accountability rules.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Urban commuters across all six capital city regions — the projects directly benefit people using trains, trams, buses, and ferries in Sydney, Melbourne, Brisbane, Adelaide, Perth, and Hobart.
What projects were funded?
The Schedule to the agreement lists dozens of specific infrastructure projects already approved, including:
New South Wales: New double-decker electric train cars, railway tunnel enlargement, signalling upgrades, dedicated bus lanes, ferry wharf improvements, and station car parks.
Victoria: Track duplications and extensions, new electric trains, trams and buses, station rebuilds, and signalling improvements.
Queensland: A cross-river rail link (the Merivale Street Bridge), railway electrification (Darra to Ferny Grove), and additional track capacity.
South Australia: A new railway extension to Christie Downs (electrified), Glenelg tram upgrades, and new buses.
Western Australia: A pedestrian bridge and bus access road to the Central Bus Station, new bus stations, new buses, and ferry infrastructure at Perth and South Perth.
Tasmania: New buses, ticket machines, and bus shelters.
How does the approval process work?
A state proposes a project to the Commonwealth Minister for Transport.
The Commonwealth investigates it (including economic, social, and environmental analysis).
If approved, both ministers agree on the estimated cost — that locks in the funding formula.
The state carries out the works, subject to Commonwealth oversight (including the right to inspect works and review all financial records).
An independent audit by the state's Auditor-General is required annually.
Key safeguards and conditions:
Contracts over $250,000 require Commonwealth sign-off before being awarded.
States must report every six months on progress and spending.
States must refund any overpayment once a project is completed.
The Commonwealth gets a seat at the table on state urban transport planning bodies.
Cost increases due to rising labour and materials prices can be accommodated; cost blowouts from poor planning cannot.