State Grants Commission Act 1976 An Act to provide for the establishment of a State Grants Commission, the making of recommendations by that Commission with respect to the payment under this Act by the Treasurer of certain Commonwealth grants to councils, and incidental matters [Royal Assent 21 June 1976] Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows: 1. Short title This Act may be cited as the State Grants Commission Act 1976 . 2. Interpretation In this Act, unless the contrary intention appears – chairman means the chairman of the Commission; Commission means the State Grants Commission established under this Act; further recommendations has the meaning assigned to that expression by section 10 (1) (b) ; goods and services tax means the GST as defined in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth; grant means a grant of a kind referred to in section 3 (2) (a) ; GST law has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth; member means a member of the Commission; recommendations means recommendations made by the Commission for the purpose of exercising its functions under section 3 (2) and that are not required to be reconsidered by the Commission pursuant to section 10 (1) (b) . 3. Establishment and functions of the State Grants Commission (1) There shall be established a commission, to be known as the State Grants Commission. (2) The functions of the Commission are to recommend to the Treasurer – (a) the councils to which he is to pay, in each financial year, grants of financial assistance out of moneys made available to the State by the Commonwealth for that purpose in that year; and (b) the amounts of those grants; and (c) if so directed by the Minister responsible for the administration of the National Taxation Reform (Commonwealth-State Relations) Act 1999 , investigate and report on any matter relating to the obligation of a council to comply with the GST Law in accordance with that Act; and (d) the distribution between councils in each financial year of funds made available by the State from its collection of motor tax from the registration of heavy vehicles, within the meaning of the Motor Vehicles Taxation Act 1981 . 4. Constitution, &c., of Commission (1) The Commission shall consist of 3 members appointed by the Governor, of whom– (a) . . . . . . . . (b) 2 shall be persons who are, or have been, associated with local government in the State nominated by the Minister administering the Local Government Act 1993 from a list of 4 names submitted to that Minister by the Local Government Association of Tasmania; and (c) one shall be a person who the Secretary of the Department considers to have appropriate experience in business, financial or local government matters and who is nominated by the Secretary of the Department and approved by the Minister. (2) If the Local Government Association of Tasmania fails to make a nomination under subsection (1) (b) after being so requested by the Minister administering the Local Government Act 1993 within the period specified in the request, the Governor may appoint as members such 2 persons who are, or have been, associated with local government in the State as the Governor considers suitable. (3) If no such appointment is made as required by subsection (1) (c) , the Under Treasurer shall be a member of the Commission. (4) The chairman of the Commission is the member referred to in subsection (1)(c) . (5) A State Service officer or State Service employee may hold office as a member in conjunction with State Service employment. (5A) A person who is – (a) a member of the council; or (b) an employee of a council– may be nominated as a member of the Commission but that person cannot accept appointment to the Commission unless he or she first resigns from that office or employment. (6) The members shall be paid such remuneration and such travelling and other allowances as the Governor may determine but no remuneration or allowances shall be paid to a member who is a State Service officer or State Service employee except with the approval of the Head of the State Service Agency in which the officer or employee is employed. 5. Term of office and removal of members (1) Subject to this section, a member shall – (a) be appointed for such term, not exceeding 5 years, as is specified in the member's instrument of appointment; and (b) if otherwise qualified, be eligible for re-appointment. (2) If a member dies or ceases to hold office otherwise than by reason of the effluxion of time, the Governor may appoint a person (being a person nominated as provided by section 4(1)(b) , or nominated and approved as provided by section 4(1)(c) , as the case requires) to fill the office for the remainder of the term for which the vacating member was so appointed. (3) The Governor may remove a member from office if he is satisfied that that member – (a) has become incapable of carrying out the duties of his office; (b) has misconducted himself in the performance of the duties of his office; (c) has, without leave of the Commission, been absent from 3 or more consecutive meetings of the Commission; (d) has applied to take, or takes, advantage of any law relating to bankruptcy, or has compounded, or entered into an arrangement, with his creditors; or (e) has been convicted (whether in this State or elsewhere) of an offence of such a nature that, in the opinion of the Governor, renders it improper for him to continue to be a member; (f) has been nominated as a candidate for election as a member of the council; or (g) has entered into a contract of employment with a council. (4) A member shall not be removed from office otherwise than in accordance with this section. (4A) A member may resign from the Commission by giving the Governor written notice of resignation. (5) This section applies only to a member who is appointed by the Governor. 6. Procedure of the Commission (1) Where the Commission holds a meeting at which the Commission decides to make recommendations or further recommendations to the Treasurer – (a) the chairman shall preside at the meeting and has a deliberative vote; (b) 3 members constitute a quorum at the meeting; (c) all questions arising at the meeting (whether in relation to decisions to make those recommendations or otherwise) shall be decided by a majority of members voting on those questions. (d) . . . . . . . . (2) Where the Commission holds a meeting other than one referred to in subsection (1) – (a) the chairman, or, if he is absent, such one of the other members present as they choose, shall preside at the meeting; (b) the member presiding at the meeting has a deliberative vote; (c) 2 members constitute a quorum at the meeting; and (d) in the event of an equality of votes on any question, the question stands adjourned until a meeting of the Commission at which all the members are present. (3) Subject to this Act, the Commission may regulate its own proceedings. 7. Staff and support to be provided to Commission The Secretary of the Department must arrange for there to be made available to the Commission – (a) the State Service officers and State Service employees employed in a State Service Agency; and (b) the financial and other support – who or that may be necessary to enable the Commission to exercise and perform the Commission's powers and functions under this Act. 8. Authority for Commission to make investigations and inquiries (1) For the purpose of making recommendations to the Treasurer, the Commission may hold such inquiries and make such investigations as it considers to be necessary. (2) Section 8 and Part 3 of the Commissions of Inquiry Act 1995 apply to an inquiry or investigation under subsection (1) as if – (a) the Commission were a Commission established under section 4 of that Act ; and (b) the subject of the inquiry or investigation were the matter into which that Commission had been directed to inquire under that Act. (3) A person who attends before the Commission for the purpose of giving evidence when summoned to do so is entitled to be paid such fees, allowances, and sums by way of reimbursement of expenses as the Treasurer may determine. 8A. Duties of Commission relating to GST law (1) In this section, Minister means the Minister responsible for the administration of the National Taxation Reform (Commonwealth-State Relations) Act 1999 . (2) On receipt of a direction by the Minister as mentioned in section 3(2)(c) in respect of a council, the Commission must – (a) appoint an auditor for the purposes of – (i) investigating and reporting on any failure by the council to comply with the GST law in any financial year or years; and (ii) in the event of any such failure, determining any liability of the council arising from that failure; and (b) having regard to a report received under paragraph (a) , in the event of any such failure recommend to the Treasurer the amount of any unpaid goods and services tax that should be withheld from a grant under this Act, which amount is to be equal to the difference between the amount of that tax actually paid and the amount that, in the auditor's opinion, should have been paid by the council; and (c) provide to the Minister a copy of the recommendation given to the Treasurer. (3) On receipt of a recommendation by the Commission under this section, the Treasurer must ensure that – (a) a grant to a council under this Act is reduced in accordance with the recommendation; and (b) the amount specified in the recommendation is paid to the Australian Taxation Office as goods and services tax. (4) A grant may be withheld or reduced under this section whether or not the failure to comply with the GST law by a council relates to the financial year in which the grant is payable. 9. Provisions relating to functions of the Commission (1) As soon as practicable after the commencement of each financial year the Treasurer shall inform the Commission of the total amount of the moneys that the Commonwealth has made available in that year for the making of grants to councils. (2) In making recommendations to the Treasurer in each financial year the Commission may recommend the payment of different amounts to different councils, but the Commission shall ensure that– (a) subject to section 8A, the total amount of the grants recommended to be paid to councils in that year equals the total amount that the Treasurer has informed the Commission is available for the making of grants in that year; and (b) the recommendations, and the allocation of grants to councils proposed by the recommendations, are in accordance with the requirements of the Local Government (Financial Assistance) Act 1995 of the Commonwealth. (c) . . . . . . . . (3) The Commission shall, forthwith after deciding to make recommendations to the Treasurer in any financial year, furnish the Treasurer with a report containing particulars of those recommendations. 10. Power of Treasurer to accept recommendations or require further recommendations (1) On receipt of a report under section 9 (3) , the Treasurer – (a) may accept the recommendations contained in the report; or (b) may send a notice to the Commission requesting it to reconsider the recommendations or any part of those recommendations and, subject to its taking into account the same matters as are specified in section 9 (2) , to make such further recommendations as are necessary to enable the Treasurer to make grants in the relevant financial year (in this Act referred to as "further recommendations"). (2) A notice under subsection (1) (b) shall contain particulars of the Treasurer's reasons for requesting the Commission to reconsider its recommendations or the part of the recommendations to which the notice relates. (3) On receipt of a notice under subsection (1) (b) , the Commission shall forthwith – (a) hold such inquiries and make such investigations as are necessary to enable it to make such further recommendations as are necessary to comply with the notice; and (b) after complying with paragraph (a) , furnish the Treasurer with a report containing particulars of those further recommendations. (4) The provisions of subsections (2) and (3) of section 8 apply, with the necessary modifications, to an inquiry or investigation for the purposes of this section as they apply to an inquiry or investigation referred to in subsection (1) of that section. (5) On receipt of a report under subsection (3) (b) , the Treasurer shall accept the further recommendations contained in the report. 11. Payment of grants (1) The Treasurer shall, on accepting any recommendations or further recommendations contained in a report made by the Commission under section 9 (3) or section 10 (3) in any financial year, pay grants in that year to councils in accordance with those recommendations or further recommendations. (2) The payment of grants under subsection (1) shall be made out of the Public Account from funds provided by Parliament for the purpose. 12. Expenses of Act The expenses incurred in the administration of this Act shall be paid out of funds provided by Parliament for the purpose. 13. Reports by Treasurer The Treasurer shall cause a copy of every report furnished to him under section 9 (3) or section 10 (3) to be laid before each House of Parliament within the first 10 sitting days of the House after he receives that report. 14.