Commonwealth Numbered Acts

LOCAL GOVERNMENT (FINANCIAL ASSISTANCE) AMENDMENT ACT 1989 No. 62, 1989 - SECT 7

7. After section 7 of the Principal Act the following section is inserted:
Adjustment of amounts to which States entitled for 1989 financial year

"7A. (1) As soon as practicable after the Statistician publishes the index
number in respect of the March quarter in the year beginning on 1 July 1989,
the Treasurer is to determine the adjustment factor in respect of that year.

"(2) The adjustment factor is the number worked out using the formula:
N1 + N3
IE where:
N1 is the index number in respect of the March quarter in the year beginning
on 1 July 1989;
N3 is the sum of the index numbers in respect of the 3 quarters immediately
preceding that quarter;
IE is the index estimate.

"(3) Where the Treasurer determines the adjustment factor in relation to the
year beginning on 1 July 1989, the Treasurer is to determine the adjusted base
figure in relation to that year.

"(4) The adjusted base figure is the number worked out by multiplying $671
millions by the adjustment factor.

"(5) Where the Treasurer determines the adjusted base figure, the Treasurer is
to determine the amount to which each State would have been entitled under
subsection 7 (4) in respect of the year beginning on 1 July 1989 if the
adjusted base figure had been used instead of the base figure of $671
millions.

"(6) If the amount determined under subsection (5) in relation to a State is
more than the amount to which the State was entitled under subsection 7 (4),
the State is entitled to an additional amount equal to the difference.

"(7) In addition to any other conditions to which a payment under this Act is
subject, payment of an amount to a State under subsection 7 (4) in respect of
the year beginning on 1 July 1989 is subject to the condition that if the
amount determined under subsection (5) of this section in relation to the
State is less than the amount paid to the State under subsection 7 (4), the
State will pay to the Commonwealth an amount equal to the difference.

"(8) Where an amount is payable to a State under subsection (6), that amount
may be paid to the State together with the payment to which the State is
entitled under section 7 in respect of the year beginning on 1 July 1990.

"(9) Where a State is liable to pay an amount to the Commonwealth under
subsection (7), that amount may be deducted from any other amount payable to
the State under this Act, and where an amount is so deducted, an amount equal
to the amount so deducted is, in spite of the deduction, to be taken, for the
purposes of this Act, to have been paid in full to the State.

"(10) An amount payable by a State to the Commonwealth under subsection (7)
must be paid on or before a date determined by the Minister, by notice in
writing given to the Treasurer of the State.".