Explanatory Memorandum
(Circulated by authority of the Minister for Regional Services, Territories and Local Government, Senator the Hon. Ian Macdonald)NOTES ON CLAUSES
Provides for the Act to be cited as the A New Tax System (Commonwealth-State Financial Arrangements - Consequential Provisions) Act 1999 .
Provides for the Act to come into operation with effect from 1 July 1999. The repeal of the two Acts occurs at the same time as the A New Tax System (Commonwealth-State Financial Arrangements) Act 1999 commences.
Provides for the Acts to be amended or repealed according to the terms set out in the Schedules.
Schedule 1 - Amendment of the Local Government (Financial Assistance) Act 1995
Subsection 9(4) provides for section 9 payments to a State to be made in equal quarterly instalments. Clause 1 amends this subsection so that it does not apply for financial year 1999-2000.
Clause 2 - At the end of section 9
Clause 2 provides for a quarter of the section 9 payments to which a State is entitled in 1999-2000 to be paid in each of the first three quarters of that financial year and the remaining quarter to be paid in equal monthly instalments in the last quarter.
Subsection 10(1) establishes the formula for calculating the final grant amount for section 9 payments. Clause 3 amends this subsection so that it does not apply for financial year 1999-2000.
If there is an underpayment of section 9 payments in a year, subsection 10(6) provides for the underpayment to be paid in the following year by way of equal quarterly instalments. Clause 4 amends this subsection so that it does not apply for financial year 1998-99.
Clause 5 - After subsection 10(6)
If there is an underpayment of section 9 payments in 1998-99, clause 5 provides for the underpayment to be paid in instalments in 1999-2000. A quarter of the underpayments to a State are paid in each of the first three quarters of that year and the remaining quarter is paid in equal monthly instalments in the last quarter.
If there is an overpayment of section 9 payments in a year, subsection 10(7) provides for the overpayment to be recovered in the following year by way of equal quarterly instalments. Clause 6 amends this subsection so that it does not apply for financial year 1998-99.
Clause 7 - At the end of section 10
If there is an overpayment of section 9 payments in 1998-99, clause 7 provides for the overpayment to be deducted from instalments in 1999-2000. A quarter of the overpayments to a State is recovered in each of the first three quarters of the year and the remaining quarter is recovered in equal monthly instalments in the last quarter.
Clause 8 inserts section 10A into the Act. This establishes the formula to calculate the final grant amount of section 9 payments to which the States are entitled in 1999-2000. The formula is used to determine the amount of under or overpayment for that financial year. If there is an underpayment in 1999-2000, then the underpayment is paid to the States in the June 2000 monthly instalment. If there is an overpayment in 1999-2000, then the overpayment is recovered from the States in the June 2000 monthly instalment.
Subsection 12(4) provides for section 12 payments to a State to be made in equal quarterly instalments. Clause 9 amends this subsection so that it does not apply for financial year 1999-2000.
Clause 10 - At the end of section 12
Clause 10 provides for a quarter of the section 12 payments to which a State is entitled in 1999-2000 to be paid in each of the first three quarters of that financial year and the remaining quarter to be paid in equal monthly instalments in the last quarter.
Subsection 13(1) establishes the formula for calculating the final grant amount for section 12 payments. Clause 11 amends this subsection so that it does not apply for financial year 1999-2000.
If there is an underpayment of section 12 payments in a year, subsection 13(4) provides for the underpayment to be paid in the following year by way of equal quarterly instalments. Clause 12 amends this subsection so that it does not apply for financial year 1998-99.
Clause 13 - After subsection 13(4)
If there is an underpayment of section 12 payments in 1998-99, clause 13 provides for the underpayment to be paid in instalments in 1999-2000. A quarter of the underpayment to a State is paid in each of the first three quarters of that year and the remaining quarter is paid in equal monthly instalments in the last quarter.
If there is an overpayment of section 12 payments in a year, subsection 13(5) provides for the overpayment to be recovered in the following year by way of equal quarterly instalments. Clause 14 amends this subsection so that it does not apply for financial year 1998-99.
Clause 15 - At the end of section 13
If there is an overpayment of section 12 payments in 1998-99, clause 15 provides for the overpayment to be deducted from instalments in 1999-2000. A quarter of the overpayment to a State is recovered in each of the first three quarters of the year and the remaining quarter is recovered in equal monthly instalments in the last quarter.
Clause 16 inserts section 13A into the Act. This establishes the formula to calculate the final grant amount of section 12 payments to which the States are entitled in 1999-2000. The formula is used to determine the amount of under or overpayment for that financial year. If there is an underpayment in 1999-2000, then the underpayment is paid to the States in the June 2000 monthly instalment. If there is an overpayment in 1999-2000, then the overpayment is recovered from the States in the June 2000 monthly instalment.
Schedule 2 - Repeal of Acts
Local Government (Financial Assistance) Act 1995
Clause 1 - The whole of the Act
Provides for the whole of the Act to be repealed.
Clause 2 - Transitionalsection 15 conditions continue to apply
Section 15 provides a number of conditions on the payment of grants to the States and the Northern Territory. It includes a condition that the Treasurer of the State or Territory must provide a certified statement to the Minister accounting for the distribution of payments made to local government during the previous financial year. After the Act is repealed, this condition will continue to apply to payments made to the State under the Act.
Clause 3 - Transitional section 16 report to be prepared etc.
Section 16 requires the Minister, as soon as practicable after 30 June of each year, to cause to be prepared and to table in Parliament a National Report on the operation of the Act. This provision requires that, after the Act is repealed, the Minister will cause to be prepared and to table in Parliament a National Report in relation to the year 1999-2000.
State Grants (General Purposes) Act 1994
Clause 4 - The whole of the Act
Provides for the repeal of the whole of the Act.