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

Part 4 Grants to the States

Division 1 GST revenue grants

13   GST revenue grants

                   Subject to this Act, each State is entitled to the payment, by way of financial assistance, for a GST year, of a grant worked out using the formula:

where:

adjusted State population means the estimated population of the State on 31 December in the GST year (see subsection 7(1)) multiplied by the relativities factor (see section 9) for the State for that year.

adjusted total population means the sum of the adjusted populations of all of the States for the GST year.

GST revenue means the GST revenue for the GST year (see section 5).

State hospital grant means the hospital grant for the State for the GST year (see section 6).

total hospital grants means the sum of the hospital grants for all of the States for the GST year.

Note:          See also Schedule 1 which deals with transitional GST years.



 

Division 2 Other grants

14   Franchise fees windfall tax reimbursement payments

                   Each State is to be paid by way of financial assistance, for a GST year, a franchise fees windfall tax reimbursement payment equal to the sum of the amounts determined by the Commissioner of Taxation, before 22 June in the GST year, to be:

                     (a)  the total of the amounts of tax collected by the State under the Franchise Fees Windfall Tax (Collection) Act 1997 that are remitted to the Commissioner of Taxation before 1 June in the GST year; and

                     (b)  the total of the amounts of tax to be collected by the State under that Act that is likely to be remitted to the Commissioner of Taxation during the month of June in the GST year.

15   Competition Agreement payments

             (1)  The Treasurer may pay, by way of financial assistance to a State, for a GST year:

                     (a)  an amount that does not exceed; or

                     (b)  amounts that in total do not exceed;

the maximum competition payment amount worked out under whichever of subsection (2), (3) or (4) applies.

             (2)  The maximum competition payment amount for a State for the 2000-01 GST year is:

where:

base amount means the sum of the maximum amounts referred to in section 12A of the States Grants (General Purposes) Act 1994 (as in force immediately before its repeal) for the financial year commencing on 1 July 1999.

index factor means the index factor for the GST year (see section 8).

State population means the estimated population of the State on 31 December in the GST year (see subsection 7(1)).

total population means the sum of the estimated populations of all of the States on 31 December in the GST year.

             (3)  The maximum competition payment amount for a State for the 2001-02 GST year is:

where:

base amount means the total of the maximum competition payment amounts for the year commencing on 1 July 2000 for each of the States.

index factor means the index factor for the GST year (see section 8).

State population means the estimated population of the State on 31 December in the GST year (see subsection 7(1)).

total population means the sum of the estimated populations of all the States on 31 December in the GST year.

             (4)  The maximum competition payment amount for a State for a later GST year is:

where:

base amount means the total of the maximum competition payment amounts for the previous GST year for each of the States.

index factor means the index factor for the GST year (see section 8).

State population means the estimated population of the State on 31 December in the GST year (see subsection 7(1)).

total population means the sum of the estimated populations of all of the States on 31 December in the GST year.

16   Revenue replacement payments —2000-01

             (1)  Each State is to be paid by way of financial assistance, for the 2000-01 GST year, a revenue replacement payment.

             (2)  The revenue replacement payment for a State for the 2000-01 GST year is:

where:

alcohol base amount means the sum of:

                     (a)  the amounts determined by the Commissioner of Taxation, before 15 June 2001, to be the additional amount of sales tax on taxable dealings that occurred before 1 July 2000 to which the Sales Tax (Surcharge) Acts relate that was, or is likely to be, collected in the GST year because of a Commonwealth surcharge; and

                     (b)  if the June 2000 alcohol base amount exceeds the June 2000 alcohol base amount estimate—the amount of the excess;

less the sum of:

                     (c)  if the June 2000 alcohol base amount estimate exceeds the June 2000 alcohol base amount—the amount of the excess; and

                     (d)  the amount determined by the Commissioner of Taxation to be the additional administrative costs incurred by the Commonwealth in the GST year because of that surcharge or those surcharges, to the extent that the administrative costs relate to taxable dealings that occurred before 1 July 2000.

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

petroleum base amount means the sum of:

                     (a)  the amount determined by the Chief Executive Officer of Customs, before 15 June 2001, to be the additional amount of customs duty on goods, imported before 1 July 2000, falling to subheadings of Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 that was, or is likely to be, collected during the GST year because of a Commonwealth surcharge; and

Note:       Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 deals with petroleum products.

                     (b)  the amount determined by the Commissioner of Taxation to be the additional amount of excise duty on goods, manufactured or produced before 1 July 2000, falling to items 11 and 12 of the Schedule to the Excise Tariff Act 1921 that was, or is likely to be, collected during the GST year because of a Commonwealth surcharge; and

Note:       Items 11 and 12 of the Schedule to the Excise Tariff Act 1921 deal with petroleum products.

                     (c)  if the June 2000 petroleum base amount exceeds the June 2000 petroleum base amount estimate—the amount of the excess;

less the sum of:

                     (d)  if the June 2000 petroleum base amount estimate exceeds the June 2000 petroleum base amount—the amount of the excess; and

                     (e)  the amount determined by the Chief Executive Officer of Customs to be the additional administrative costs incurred by the Commonwealth in the GST year because of surcharges mentioned in paragraph (a), to the extent that the administrative costs relate to goods that were imported before 1 July 2000; and

                      (f)  the amount determined by the Commissioner of Taxation to be the additional administrative costs incurred by the Commonwealth in the GST year because of surcharges mentioned in paragraph (b), to the extent that the administrative costs relate to goods that were manufactured or produced before 1 July 2000.

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

tobacco base amount means the sum of:

                     (a)  the amount determined by the Chief Executive Officer of Customs, before 15 June 2001, to be the additional amount of customs duty on goods, imported before 1 July 2000, falling to subheadings of Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 that was, or is likely to be, collected during the GST year 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.

                     (b)  the amount determined by the Commissioner of Taxation to be the additional amount of excise duty on goods, manufactured or produced before 1 July 2000, falling to items 6, 7 and 8 of the Schedule to the Excise Tariff Act 1921 that was, or is likely to be, collected during the GST year 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.

                     (c)  if the June 2000 tobacco base amount exceeds the June 2000 tobacco base amount estimate—the amount of the excess;

less the sum of:

                     (d)  if the June 2000 tobacco base amount estimate exceeds the June 2000 tobacco base amount—the amount of the excess; and

                     (e)  the amount determined by the Chief Executive Officer of Customs to be the additional administrative costs incurred by the Commonwealth in the GST year because of surcharges mentioned in paragraph (a), to the extent that the administrative costs relate to goods that were imported before 1 July 2000; and

                      (f)  the amount determined by the Commissioner of Taxation to be the additional administrative costs incurred by the Commonwealth in the GST year because of surcharges mentioned in paragraph (b), to the extent that the administrative costs relate to goods that were manufactured or produced before 1 July 2000.

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

             (3)  In determining, for the purposes of subsection (2), 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:

                     (a)  the Chief Executive Officer of Customs is to take into account the impact of the operation of section 19 of the Customs Tariff Act 1995 ; and

                     (b)  the Commissioner of Taxation is to take into account the impact of the operation of section 6A of the Excise Tariff Act 1921 .

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.

             (4)  If, after the commencement of this Act, the Customs Tariff Act 1995 or the Excise Tariff Act 1921 is amended to vary the method of calculating duty on goods falling to:

                     (a)  subheadings of Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 ; or

                     (b)  items 6, 7 and 8 of the Schedule to the Excise Tariff Act 1921 ;

then, for the purposes of subsection (2), the additional amount of customs duty or excise duty that was collected, or is likely to be collected, during a particular period is to be determined on the basis that the amendment had not been made.

             (5)  For the purpose of subsection (4):

                     (a)  a Customs Tariff or Customs Tariff alteration proposed in the Parliament is taken to be an amendment of the Customs Tariff Act 1995 ; and

                     (b)  an excise tariff alteration proposed in the Parliament is taken to be an amendment of the Excise Tariff Act 1921 .

             (6)  In this section:

Commonwealth surcharge means the variation effected by a Surcharge Act in the rate of duty of customs or excise payable on specified goods or in the rate of sales tax applicable to specified taxable dealings (as the case may be).

June 2000 alcohol base amount means the amount determined by the Commissioner of Taxation, before 15 June 2001, 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 2000 because of a Commonwealth surcharge.

June 2000 alcohol base amount estimate means the amount determined by the Commissioner of Taxation to be the June 2000 alcohol base amount estimate for the purposes of Schedule 6 to the States Grants (General Purposes) Act 1994 (as in force immediately before its repeal).

June 2000 petroleum base amount means the sum of the amounts determined by the Chief Executive Officer of Customs, before 15 June 2001, 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 2000 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 2000 because of a Commonwealth surcharge.

June 2000 petroleum base amount estimate has the same meaning as in Schedule 6 to the States Grants (General Purposes) Act 1994 (as in force immediately before its repeal).

June 2000 tobacco base amount means the sum of:

                     (a)  the amount determined by the Chief Executive Officer of Customs, before 15 June 2001, to be 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 2000 because of a Commonwealth surcharge; and

                     (b)  the amount determined by the Commissioner of Taxation, before 15 June 2001, to be 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 2000 because of a Commonwealth surcharge.

June 2000 tobacco base amount estimate has the same meaning as in Schedule 6 to the States Grants (General Purposes) Act 1994 (as in force immediately before its repeal).

Sales Tax (Surcharge) Acts means the following Acts:

                     (a)  the Sales Tax (Customs) (Alcoholic Beverages) Act 1997 ;

                     (b)  the Sales Tax (Excise) (Alcoholic Beverages) Act 1997 ;

                     (c)  the Sales Tax (General) (Alcoholic Beverages) Act 1997 .

Note:          These Acts increase the rates of tax that apply to taxable dealings with the following goods:

(a)           goods covered by Item 1 of Schedule 7 to the Sales Tax (Exemptions and Classifications) Act 1992 ;

(b)           beer, spirits, liqueurs or spirituous liquors;

(c)           beverages that contain beer, spirits (other than spirits for fortifying wine or other beverages), liqueurs or spirituous liquors.

Surcharge Acts means the following Acts:

                     (a)  the Customs Tariff Amendment Act (No. 3) 1997 ;

                     (b)  the Excise Tariff Amendment Act (No. 3) 1997 ;

                     (c)  the Sales Tax (Surcharge) Acts;

                     (d)  any Act that varies:

                              (i)  the rate of the duty of customs payable on goods falling to subheadings of Chapter 24 or 27 of the Customs Tariff Act 1995 ; or

                             (ii)  the rate of the duty of excise payable on goods falling to item 6, 7, 8 or 11 of the Schedule to the Excise Tariff Act 1921 ; or

                            (iii)  the rate of sales tax applicable to any of the taxable dealings to which the Sales Tax (Surcharge) Acts relate;

                            and is prescribed for the purposes of this definition.

Note 1:       The Customs Tariff Amendment Act (No. 3) 1997 increases the rate of the duty of customs payable on goods falling to certain subheadings of Chapters 24 and 27 of Schedule 3 to the Customs Tariff Act 1995 . The relevant subheadings of Chapter 24 deal with tobacco and manufactured tobacco substitutes. The relevant subheadings of Chapter 27 deal with petroleum products.

Note 2:       The Excise Tariff Amendment Act (No. 3) 1997 increases the rate of the duty of excise payable on goods falling to items 6, 7, 8 and 11 in the Schedule to the Excise Tariff Act 1921 . Items 6, 7 and 8 in that Schedule deal with tobacco, cigars and cigarettes. Item 11 deals with petroleum products.

 



 

Division 3 Payment of grants

17   Overpayment or underpayment of grant

             (1)  If a State has been paid an amount in excess of the amount that, under a provision of this Act, it was entitled to receive by way of financial assistance for a GST year, the Treasurer must deduct an amount equal to the excess from any amount that the State is entitled to receive by way of financial assistance under this Act for the year immediately following the GST year.

             (2)  If a State has been paid less than the amount that, under a provision of this Act, it was entitled to receive by way of financial assistance for a GST year, the Treasurer must add an amount equal to the shortfall to any amount that the State is entitled to receive by way of financial assistance under this Act for the year immediately following the GST year.

18   Advance payments for GST year

                   The Treasurer may make advances to a State of portions of the amount or amounts to which, it appears to the Treasurer, the State will be entitled under this Act for a GST year.

19   Treasurer may fix amounts, and times of payments, of financial assistance

                   Financial assistance payable to a State under this Act is to be paid in such amounts, and at such times, as the Treasurer determines in writing.



 

Part 5 Miscellaneous

   

20   Appropriation

                   Payments under this Act are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.

21   Delegation by Treasurer

             (1)  The Treasurer may, by signed writing, delegate to an SES officer (within the meaning of the Public Service Act 1922 ) in the Department all or any of the Treasurer’s powers under sections 18 and 19.

             (2)  A delegate is, in the exercise of a power so delegated, subject to the Treasurer’s directions.

22   Determinations

                   A determination made under this Act by:

                     (a)  the Treasurer; or

                     (b)  the Health Minister; or

                     (c)  the Commissioner of Taxation; or

                     (d)  the Australian Statistician;

is, for the purposes of this Act, conclusively presumed to be correct.

23   Regulations

                   The Governor-General may make regulations:

                     (a)  prescribing matters required or permitted by this Act to be prescribed; or

                     (b)  prescribing matters necessary or convenient to be prescribed for carrying out or giving effect to this Act.