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This is a Bill, not an Act. For current law, see the Acts databases.
1998
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
States Grants
(General Purposes) Amendment Bill 1998
No.
, 1998
(Treasury)
A
Bill for an Act to amend the States Grants (General Purposes) Act 1994,
and for related purposes
ISBN: 0642 377383
Contents
A Bill for an Act to amend the States Grants (General
Purposes) Act 1994, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the States Grants (General Purposes)
Amendment Act 1998.
This Act commences on the day on which it receives the Royal
Assent.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
1 Subsection 4(1)
Insert:
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 Subsection 5(1)
Omit all the words after “where:”, substitute:
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.
3 Subsection 5(2)
Repeal the subsection, substitute:
(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.
4 Section 10
Omit “the grant year commencing 1 July 1997”, substitute
“a grant year”.
5 After section 11
Insert:
(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.
6 Section 12A
Omit “the grant year commencing on 1 July 1997”, substitute
“a grant year”.
Note: The heading to section 10 is altered by omitting
“—1997-98”.
7 After section 15B
Insert:
(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.
8 Subsection 20(1)
After “15B,” insert “15C,”
9 At the end of the Act
Add:
This Schedule relates to the grant year commencing on 1 July
1998.
(1) In this Schedule:
base assistance amount has the meaning given by subclause
(2).
CEO means the Chief Executive Officer of Customs.
Commissioner means the Commissioner of Taxation.
June 1998 ABA amount means the amount determined by the
Commissioner, before 15 June 1999, to be the additional amount of sales tax on
taxable dealings to which the Sales Tax Surcharge Acts relate that was collected
during the month of June 1998 because of a Commonwealth surcharge.
June 1998 ABA estimate amount means the amount determined by
the Commissioner under paragraph (b) of the definition of ABA in
subclause 5(1) of Schedule 4.
June 1998 PBA amount means the sum of the amounts determined
by the CEO, before 15 June 1999, to be:
(a) the additional amount of customs duty falling to subheadings of
Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 that was
collected during the month of June 1998 because of a Commonwealth surcharge;
and
(b) the additional amount of excise duty falling to items 11 and 12 of the
Schedule to the Excise Tariff Act 1921 that was collected during the
month of June 1998 because of a Commonwealth surcharge.
June 1998 PBA estimate amount means the sum of the amounts
determined by the CEO under paragraphs (b) and (d) of the definition of
PBA in subclause 5(1) of Schedule 4.
June 1998 TBA amount means the sum of the amounts determined
by the CEO, before 15 June 1999, to be:
(a) the additional amount of customs duty falling to subheadings of
Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 that was
collected during the month of June 1998 because of a Commonwealth surcharge;
and
(b) the additional amount of excise duty falling to items 6, 7 and 8 of
the Schedule to the Excise Tariff Act 1921 that was collected during the
month of June 1998 because of a Commonwealth surcharge.
June 1998 TBA estimate amount means the sum of the amounts
determined by the CEO under paragraphs (b) and (d) of the definition of
TBA in subclause 5(1) of Schedule 4.
pre-1 June period means the period from the beginning of 1
July 1998 to the end of 31 May 1999.
previous year means the financial year commencing on 1 July
1997.
(2) In this Schedule:
base assistance amount means the amount worked out using the
formula:
where:
PYBAA (previous year base assistance amount) means
$15,828,423,529.
PYIF (previous year index factor) means the index factor for
the previous year.
PYPF (previous year population factor) means the population
factor for the previous year.
Note: $366,641,403 is an amount that was paid under section
12 in relation to the grant year commencing on 1 July 1996, which would
otherwise have been paid under section 9.
The relativities factor for each State for the grant year is as shown in
the following table:
|
Relativities factors |
||
|---|---|---|
|
Item |
State |
Relativities factor |
|
1 |
New South Wales |
0.87765 |
|
2 |
Victoria |
0.88042 |
|
3 |
Queensland |
1.02186 |
|
4 |
Western Australia |
0.98252 |
|
5 |
South Australia |
1.22194 |
|
6 |
Tasmania |
1.55086 |
|
7 |
Australian Capital Territory |
0.95145 |
|
8 |
Northern Territory |
4.81869 |
For the purposes of section 10, the maximum amount that may be deducted
from the financial assistance grant payable to a State is the amount worked out
using the formula:
where:
ASP (adjusted state population) means the adjusted population
of the State in relation to the grant year.
ATP (adjusted total population) means the sum of the adjusted
populations of all the States in relation to the grant year.
BAA (base assistance amount) means the base assistance amount
for the grant year.
IF (index factor) means the index factor for the grant
year.
PF (population factor) means the population factor for the
grant year.
(1) For the purposes of section 11A, the revenue replacement payment to be
made to a State is worked out using the formula:
where:
ABA (alcohol base amount) means the sum of:
(a) the amounts determined by the Commissioner, before 15 June 1999, to
be:
(i) the additional amount of sales tax on taxable dealings to which the
Sales Tax (Surcharge) Acts relate that was collected during the pre-1 June
period because of a Commonwealth surcharge; and
(ii) the additional amount of sales tax on taxable dealings to which the
Sales Tax (Surcharge) Acts relate that the Commissioner estimates to be likely
to be collected during the month of June 1999 because of a Commonwealth
surcharge; and
(b) if the June 1998 ABA amount exceeds the June 1998 ABA estimate
amount—the amount of the excess;
less the sum of:
(c) if the June 1998 ABA estimate amount exceeds the June 1998 ABA
amount—the amount of the excess; and
(d) the amount determined by the Commissioner to be the additional
administrative costs incurred by the Commonwealth in the grant year because of
that surcharge or those surcharges.
AS (alcohol share) for a State means:
(a) if paragraph (b) does not apply—the number set out opposite the
name of the State in the table at the end of this definition; or
(b) if the regulations prescribe a number as the alcohol share for each
State for the purposes of this definition—the number so prescribed for the
State.
|
Revenue replacement payments—alcohol share |
||
|---|---|---|
|
Item |
State |
Alcohol share |
|
1 |
New South Wales |
0.33796 |
|
2 |
Victoria |
0.22332 |
|
3 |
Queensland |
0.19314 |
|
4 |
Western Australia |
0.11147 |
|
5 |
South Australia |
0.07857 |
|
6 |
Tasmania |
0.02415 |
|
7 |
Australian Capital Territory |
0.01569 |
|
8 |
Northern Territory |
0.01569 |
PBA (petroleum base amount) means the sum of:
(a) the amounts determined by the CEO, before 15 June 1999, to
be:
(i) the additional amount of customs duty on goods falling to subheadings
of Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 that was
collected during the pre-1 June period because of a Commonwealth surcharge;
and
Note: Chapter 27 of Schedule 3 to the Customs Tariff Act
1995 deals with petroleum products.
(ii) the additional amount of customs duty on goods falling to subheadings
of Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 that the CEO
estimates to be likely to be collected during the month of June 1999 because of
a Commonwealth surcharge; and
(iii) the additional amount of excise duty on goods falling to items 11
and 12 of the Schedule to the Excise Tariff Act 1921 that was collected
during the pre-1 June period because of a Commonwealth surcharge; and
Note: Items 11 and 12 of the Schedule to the Excise
Tariff Act 1921 deals with petroleum products.
(iv) the additional amount of excise duty on goods falling to items 11 and
12 of the Schedule to the Excise Tariff Act 1921 that the CEO estimates
to be likely to be collected during the month of June 1999 because of a
Commonwealth surcharge;
(b) if the June 1998 PBA amount exceeds the June 1998 PBA estimate
amount—the amount of the excess;
less the sum of:
(c) if the June 1998 PBA estimate amount exceeds the June 1998 PBA
amount—the amount of the excess; and
(d) the amount determined by the CEO to be the additional administrative
costs incurred by the Commonwealth in the grant year because of those
surcharges.
PS (petroleum share) for a State means:
(a) if paragraph (b) does not apply—the number set out opposite the
name of the State in the table at the end of this definition; or
(b) if the regulations prescribe a number as the petroleum share for each
State for the purposes of this definition—the number so prescribed for the
State.
|
Revenue replacement payments—petroleum share |
||
|---|---|---|
|
Item |
State |
Petroleum share |
|
1 |
New South Wales |
0.30039 |
|
2 |
Victoria |
0.20153 |
|
3 |
Queensland |
0.19593 |
|
4 |
Western Australia |
0.17118 |
|
5 |
South Australia |
0.07549 |
|
6 |
Tasmania |
0.02453 |
|
7 |
Australian Capital Territory |
0.01291 |
|
8 |
Northern Territory |
0.01804 |
TBA (tobacco base amount) means the sum of:
(a) the amounts determined by the CEO, before 15 June 1999, to
be:
(i) the additional amount of customs duty on goods falling to subheadings
of Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 that was
collected during the pre-1 June period because of a Commonwealth surcharge;
and
Note: Chapter 24 of Schedule 3 to the Customs Tariff Act
1995 deals with tobacco and manufactured tobacco
substitutes.
(ii) the additional amount of customs duty on goods falling to subheadings
of Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 that the CEO
estimates to be likely to be collected during the month of June 1999 because of
a Commonwealth surcharge; and
(iii) the additional amount of excise duty on goods falling to items 6, 7
and 8 of the Schedule to the Excise Tariff Act 1921 that was collected
during the pre-1 June period because of a Commonwealth surcharge; and
Note: Items 6, 7 and 8 of the Schedule to the Excise
Tariff Act 1921 deal with tobacco, cigars and cigarettes.
(iv) the additional amount of excise duty on goods falling to items 6, 7
and 8 of the Schedule to the Excise Tariff Act 1921 that the CEO
estimates to be likely to be collected during the month of June 1999 because of
a Commonwealth surcharge; and
(b) if the June 1998 TBA amount exceeds the June 1998 TBA estimate
amount—the amount of the excess;
less the sum of:
(c) if the June 1998 TBA estimate amount exceeds the June 1998 TBA
amount—the amount of the excess; and
(d) the amount determined by the CEO to be the additional administrative
costs incurred by the Commonwealth in the grant year because of those
surcharges.
TS (tobacco share) for a State means:
(a) if paragraph (b) does not apply—the number set out opposite the
name of the State in the table at the end of this definition; or
(b) if the regulations prescribe a number as the tobacco share for each
State for the purposes of this definition—the number so prescribed for the
State.
|
Revenue replacement payments—tobacco share |
||
|---|---|---|
|
Item |
State |
Tobacco share |
|
1 |
New South Wales |
0.32492 |
|
2 |
Victoria |
0.21803 |
|
3 |
Queensland |
0.19065 |
|
4 |
Western Australia |
0.11100 |
|
5 |
South Australia |
0.08988 |
|
6 |
Tasmania |
0.03226 |
|
7 |
Australian Capital Territory |
0.01456 |
|
8 |
Northern Territory |
0.01870 |
(2) In
determining, for the purposes of subclause (1), the additional amount of customs
duty or excise duty that was collected, or is likely to be collected, during a
particular period because of a Commonwealth surcharge, the CEO is to take into
account the impact of the operation of:
(a) section 19 of the Customs Tariff Act 1995; or
(b) section 6A of the Excise Tariff Act 1921;
as the case requires.
Note: Section 19 of the Customs Tariff Act 1995 and
section 6A of the Excise Tariff Act 1921 provide for the automatic
indexation of certain rates of duty which include rates payable on tobacco etc.
and petroleum products.
For the purposes of section 11B, the franchise fees windfall tax
reimbursement payment to be made to a State is equal to the sum of the amounts
determined by the Commissioner, before 22 June 1999, to be:
(a) the total of the amounts of tax collected, and remitted to the
Commissioner, by the State under the Franchise Fees Windfall Tax (Collection)
Act 1997 during the period beginning at the beginning of 1 July 1998 and
ending at the end of 21 June 1999; and
(b) the total of the amounts of tax likely to be collected, and remitted
to the Commissioner, by the State under that Act during the month of June
1999.
For the purposes of section 12, the base amount for each
State is zero.
For the purposes of section 12A, the maximum amount that may be paid to a
State is the amount worked out using the formula:
where:
BA (base amount) means $213,138,038.
IF (index factor) means the index factor for the grant
year.
SP (State population) means the estimated population of the
State on 31 December 1998.
TP (total population) means the sum of the estimated
populations of all States on 31 December 1998.
(1) For the purposes of section 15C, the amount of fiscal contribution
payable by a State is as follows:
(a) for a State other than Tasmania or the Australian Capital
Territory—the amount worked out using the following formula:
(b) for Tasmania or the Australian Capital Territory—the amount
worked out using the formula:
Note: In 1997-98, one half of the scheduled fiscal
contributions of Tasmania and the ACT were deferred to 1998-99.
(2) In this clause:
BA (base amount) means $300,000,000.
FC1997-98 means the amount of the 1997-98 fiscal contribution
worked out using the formula set out in paragraph 9(1)(b) of Schedule 4 to this
Act.
SP (state population) means the estimated population of the
State on 31 December 1998.
TP (total population) means the estimated populations of all
States on 31 December 1998.