The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

A New Tax System (Commonwealth-State Financial Arrangements--Consequential Provisions) Bill 1999

No. , 1999

(Treasury)

A Bill for an Act to amend and to repeal the Local Government (Financial Assistance) Act 1995, to repeal the States Grants (General Purposes) Act 1994, and for related purposes

ISBN 0642391440

Contents

Local Government (Financial Assistance) Act 1995 10

States Grants (General Purposes) Act 1994 10

A Bill for an Act to amend and to repeal the Local Government (Financial Assistance) Act 1995, to repeal 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 A New Tax System (Commonwealth-State Financial Arrangements--Consequential Provisions) Act 1999.

2 Commencement (1) Subject to subsection (2), this Act commences, or is taken to have commenced, on 1 July 1999.

(2) Schedule 2 commences at the same time as the A New Tax System (Commonwealth-State Financial Arrangements) Act 1999 commences.

3 Schedule(s) Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 Local Government (Financial Assistance) Act 1995

1 Subsection 9(4)

After "year", insert "(except the year beginning on 1 July 1999)".

2 At the end of section 9

Add:

(5) So far as practicable, the amount to which a State is entitled under this section in respect of the year beginning on 1 July 1999 must be paid as follows:

(a) one-quarter of the amount must be paid in each of the first 3 quarters of the year;

(b) one-quarter of the amount must be paid in the last quarter of the year in equal monthly instalments.

3 Subsection 10(1)

After "a year", insert "beginning on 1 July 1995, 1 July 1996, 1 July 1997 or 1 July 1998".

Note: The heading to section 10 is altered by adding at the end "before 1999-2000".

4 Subsection 10(6)

After "year" (first occurring), insert "(except the year beginning on 1 July 1998)".

5 After subsection 10(6)

Insert:

(6A) If an amount is payable to a State under subsection (4) in respect of the year beginning on 1 July 1998, the amount is to be paid to the State as follows:

(a) one-quarter of the amount must be paid in each of the first 3 quarters of the year beginning on 1 July 1999 at the times when the instalments to which the State is entitled under section 9 are paid;

(b) one-quarter of the amount must be paid in the last quarter of the year beginning on 1 July 1999 in equal monthly instalments at the times when the instalments to which the State is entitled under section 9 are paid.

6 Subsection 10(7)

After "year" (first occurring), insert "(except the year beginning on 1 July 1998)".

7 At the end of section 10

(8) If a State is liable to pay an amount to the Commonwealth under subsection (5) in respect of the year beginning on 1 July 1998, the amount is to be deducted as follows from the instalments that, apart from this subsection, would be payable under section 9 to the State in respect of the year beginning on 1 July 1999:

(a) one-quarter of the amount must be deducted in each of the first 3 quarters of the year;

(b) one-quarter of the amount must be deducted in the last quarter of the year in equal monthly instalments.

8 After section 10

Insert:

10A Adjustment of estimates--section 9 payments for 1999-2000 (1) This section applies to a State in respect of the year beginning on 1 July 1999 (1999-2000 financial year) if the amount worked out under subsection 9(1) (preliminary grant amount) in relation to the State in respect of that year is greater or less than the amount (final grant amount) worked out using the formula:

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where:

1998-1999 base figure means the base figure for the 1998-1999 financial year.

population of Australia means the total population of all States on 31 December 1998 as set out in an estimate of that population on that date made by the Statistician.

population of the State means the population of the State on 31 December 1998 as set out in an estimate of that population on that date made by the Statistician.

relevant final factor means the final factor for the 1999-2000 financial year.

Note 1: For base figure see subsection 4(1).

Note 2: For final factor see subsection 4(2).

(2) In making an estimate of the population of a State for the purposes of this section, the Statistician must have regard to the latest statistics in relation to the population available to the Statistician on the day on which the estimate is made.

(3) As soon as practicable after the Statistician makes an estimate of the population of each State for the purposes of this section, the Minister must cause to be given to the Treasurer of each State a written notice setting out the population of the State and the total population of all the States.

(4) If the final grant amount for a State in respect of the 1999-2000 financial year exceeds the preliminary grant amount for the State in respect of the year, the State is entitled (by way of financial assistance for local government purposes) to the payment of an amount equal to the excess. That amount is in addition to the payment to which the State is entitled under section 9 in respect of the year.

(5) In addition to any other conditions to which a payment under this Act is subject, payment of an amount to a State under this Act is subject to the condition that if the final grant amount for the State in respect of the 1999-2000 financial year is less than the preliminary grant amount for the State in respect of the year, the State will pay to the Commonwealth an amount equal to the difference.

(6) If an amount is payable to a State under subsection (4) in respect of the 1999-2000 financial year, the amount is to be paid to the State in June 2000 at the time when the June monthly instalment to which the State is entitled under section 9 in respect of the last quarter of that year is paid.

(7) If a State is liable to pay an amount to the Commonwealth under subsection (5) in respect of the 1999-2000 financial year, the amount is to be deducted from the instalment that, apart from this subsection, would be payable under section 9 to the State in June 2000.

(8) Nothing in this section prevents:

(a) an amount being paid to a State in the 1999-2000 financial year because of section 10; or

(b) an amount being deducted (because of section 10) from an amount to be paid under section 9 to a State in the 1999-2000 financial year.

9 Subsection 12(4)

After "section", insert "in respect of a year (except the year beginning on 1 July 1999)".

10 At the end of section 12

Add:

(5) So far as practicable, the amount to which a State is entitled under this section in respect of the year beginning on 1 July 1999 must be paid as follows:

(a) one-quarter of the amount must be paid in each of the first 3 quarters of the year;

(b) one-quarter of the amount must be paid in the last quarter of the year in equal monthly instalments.

After "a year", insert "beginning on 1 July 1995, 1 July 1996, 1 July 1997 or 1 July 1998".

Note: The heading to section 13 is altered by adding at the end "before 1999-2000".

12 Subsection 13(4)

After "year" (first occurring), insert "(except the year beginning on 1 July 1998)".

13 After subsection 13(4)

Insert:

(4A) If an amount is payable to a State under subsection (2) in respect of the year beginning on 1 July 1998, the amount is to be paid to the State as follows:

(a) one-quarter of the amount must be paid in each of the first 3 quarters of the year beginning on 1 July 1999 at the times when the instalments to which the State is entitled under section 12 are paid;

(b) one-quarter of the amount must be paid in the last quarter of the year beginning on 1 July 1999 in equal monthly instalments at the times when the instalments to which the State is entitled under section 12 are paid.

14 Subsection 13(5)

After "subsection (3)", insert "in respect of a year (except the year beginning on 1 July 1998)".

15 At the end of section 13

Add:

(6) If a State is liable to pay an amount to the Commonwealth under subsection (3) in respect of the year beginning on 1 July 1998, the amount is to be deducted as follows from the instalments that, apart from this subsection, would be payable under section 12 to the State in respect of the year beginning on 1 July 1999:

(a) one-quarter of the amount must be deducted in each of the first 3 quarters of the year;

(b) one-quarter of the amount must be deducted in the last quarter of the year in equal monthly instalments.

16 After section 13

Insert:

13A Adjustment of estimates--section 12 payments for 1999-2000 (1) This section applies to a State in respect of the year beginning on 1 July 1999 (1999-2000 financial year) if the amount worked out under section 12 (preliminary additional grant amount) in relation to the State in respect of the year is greater or less than the amount (final additional grant amount) worked out using the formula:

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where:

additional previous year funding amount means the additional previous year funding amount in relation to the State for the 1999-2000 financial year.

final factor means the final factor for the 1999-2000 financial year.

Note: For additional previous year funding amount and final factor see subsection 4(2).

(2) If the final additional grant amount for a State in respect of the 1999-2000 financial year exceeds the preliminary additional grant amount for the State in respect of the year, the State is entitled (by way of financial assistance for local government purposes) to the payment of an amount equal to the excess. That amount is in addition to the payment to which the State is entitled under section 12 in respect of the year.

(3) In addition to any other conditions to which a payment under this Act is subject, payment of an amount to a State under this Act is subject to the condition that if the final additional grant amount for the State in respect of the 1999-2000 financial year is less than the preliminary additional grant amount for the State in respect of the year, the State will pay to the Commonwealth an amount equal to the difference.

(4) If an amount is payable to a State under subsection (2) in respect of the 1999-2000 financial year, the amount is to be paid to the State in June 2000 at the time when the June monthly instalment to which the State is entitled under section 12 in respect of the last quarter of that year is paid.

(5) If a State is liable to pay an amount to the Commonwealth under subsection (3) in respect of the 1999-2000 financial year, the amount is to be deducted from the instalment that, apart from this subsection, would be payable under section 12 to the State in June 2000.

(6) Nothing in this section prevents:

(a) an amount being paid to a State in the 1999-2000 financial year because of section 13; or

(b) an amount being deducted (because of section 13) from an amount to be paid under section 12 to a State in the 1999-2000 financial year.

Schedule 2--Repeal of Acts

Local Government (Financial Assistance) Act 1995

1 The whole of the Act

Repeal the Act.

2 Transitional--section 15 conditions continue to apply

Despite the repeal of the Local Government (Financial Assistance) Act 1995, section 15 of that Act as in force immediately before the repeal continues to apply in relation to payments of amounts to a State made under that Act.

3 Transitional--section 16 report to be prepared etc.

Despite the repeal of the Local Government (Financial Assistance) Act 1995, section 16 of that Act as in force immediately before the repeal continues to apply in relation to the operation of that Act.

States Grants (General Purposes) Act 1994

4 The whole of the Act

Repeal the Act.