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STATES GRANTS (GENERAL PURPOSES) AMENDMENT BILL 1997

1996-97

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES




Presented and read a first time









States Grants (General Purposes) Amendment Bill 1997

No. , 1997

(Treasury)



A Bill for an Act to amend the States Grants (General Purposes) Act 1994, and for related purposes

9710120—899/23.6.1997—(101/97) Cat. No. 96 9261 4 ISBN 0644 505559

Contents

A Bill for an Act to amend the States Grants (General Purposes) Act 1994, and for related purposes

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the States Grants (General Purposes) Amendment Act 1997.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendment of the States Grants (General Purposes) Act 1994

1 Subsection 4(1)

Insert:

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.

2 Subsection 5(1) (definition of SDA)

Repeal the definition, substitute:

SDA (sum of deductible amounts) means the amount determined by the Minister before 10 June in the grant year to be the estimate of such part of TAP as is the sum of the amounts payable to the State, during the grant year, under the hospital funding arrangements for that year that relate to payments made in accordance with all schedules of the 1993-98 Medicare Agreements with the exception of payments made under subclause 2.1 of Schedule C, Base Hospital Funding Grant Formula.

3 Sections 10 and 11

Repeal the sections, substitute:

10 Competition Agreement: per capita growth deductions—1997-98

The Treasurer may deduct from the amount of financial assistance grant payable to a State under section 9 in relation to the grant year commencing 1 July 1997:

(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.

Note: The heading to section 12A is altered by omitting “Competition” and substituting “Competition Agreement: competition”.

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.

4 Section 12A (note)

Omit “Agreement to implement the National Competition Policy and Related Reforms executed at the Council of Australian Government on 11 April 1995”, substitute “Competition Agreement”.

5 After section 15A

Insert:

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.

6 Subsection 20(1)

After “sections”, insert “10, 11,”.

7 Subsection 20(1)

After “15A”, insert “, 15B”.

8 Clauses 2 and 3 of Schedule 4

Repeal the clauses, substitute:

2 Interpretation

In this Schedule:

base assistance amount means $15,828,423,529.

previous year means the financial year commencing on 1 July 1996.

3 Relativities factors

The relativities factor for each State for the grant year is as shown in the following table: