For the purposes of this section:

deductible amounts are amounts that relate to the following:

(a) mental health services;

(b) projects or programs of a kind referred to in paragraph 4(1)(b) of the Health Care (Appropriation) Act 1998;

(c) the critical and urgent treatment incentive program;

(d) the recognition of special demands arising from the Torres Strait Treaty;

(e) the transition from a 1993-98 Medicare Agreement to another agreement or arrangement between the Commonwealth and a State, being an agreement or arrangement that specifies conditions applying to health care grants;

(f) a service, project or program, or a component of a health care grant, that is determined by the Health Minister to be a service, project, program or component in relation to which an amount payable is to be treated as a deductible amount.

health care grant means a grant of financial assistance under section 4 of the Health Care (Appropriation) Act 1998.

4 Section 10

Omit “the grant year commencing 1 July 1997”, substitute “a grant year”.

5 After section 11

Insert:

This section applies if the amounts paid, or taken (under this Act or any other Act) to have been paid, by a State during the grant year commencing on 1 July 1998 in satisfaction of the State’s 1998-99 fiscal contribution (within the meaning of section 15C), exceed the amount of the State’s 1998-99 fiscal contribution.

The Treasurer may pay an amount by way of financial assistance to the State during the grant year commencing on 1 July 1998, or during the next grant year, that is equal to the amount of the excess.

6 Section 12A

Omit “the grant year commencing on 1 July 1997”, substitute “a grant year”.

7 After section 15B

Insert:

(1) Financial assistance to which a State is entitled under financial assistance grant) in relation to the grant year commencing on 1 July 1998 is granted on condition that the State will pay to the Commonwealth an amount of fiscal contribution (1998-99 fiscal contribution) worked out in accordance with the applicable Schedule.section 9 (a

The Treasurer may deduct from a financial assistance grant to a State in relation to the grant year commencing on 1 July 1998:

(a) an amount that does not exceed the unpaid amount of the State’s 1998-99 fiscal contribution; and

(b) if part of the State’1 July 1998—an amount that does not exceed the unpaid amount of the State’s 1997-98 fiscal contribution.s 1997-98 fiscal contribution (within the meaning of section 15B) remained unpaid on

An amount deducted under subsection (2) is taken to have been paid by the State to the Commonwealth in satisfaction of whichever of the following fiscal contributions is applicable:

(a) if the amount was deducted under paragraph (2)(a)—the State’s 1998-99 fiscal contribution;

(b) if the amount was deducted under paragraph (2)(b)—the State’s 1997-98 fiscal contribution.

A reference in this section to an unpaid amount of a State’s fiscal contribution for a grant year does not include a reference to an amount taken (under this Act or any other Act) to have been paid by the State in satisfaction of the State’s fiscal contribution for the grant year.

8 Subsection 20(1)

After “15B,” insert “15C,”

9 At the end of the Act

Add:

Schedule 5—Grant year commencing 1 July 1998

In this Schedule:

base assistance amount has the meaning given by subclause (2).

CEO means the Chief Executive Officer of Customs.

Commissioner means the Commissioner of Taxation.

June 1998 ABA amount means the amount determined by the Commissioner, before 15 June 1999, 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 1998 because of a Commonwealth surcharge.

June 1998 ABA estimate amount means the amount determined by the Commissioner under paragraph (b) of the definition of ABA in subclause 5(1) of Schedule 4.

June 1998 PBA amount means the sum of the amounts determined by the CEO, before 15 June 1999, 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 1998 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 1998 because of a Commonwealth surcharge.

June 1998 PBA estimate amount means the sum of the amounts determined by the CEO under paragraphs (b) and (d) of the definition of PBA in subclause 5(1) of Schedule 4.

June 1998 TBA amount means the sum of the amounts determined by the CEO, before 15 June 1999, to be:

(a) 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 1998 because of a Commonwealth surcharge; and

(b) 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 1998 because of a Commonwealth surcharge.

June 1998 TBA estimate amount means the sum of the amounts determined by the CEO under paragraphs (b) and (d) of the definition of TBA in subclause 5(1) of Schedule 4.

pre-1 June period means the period from the beginning of 1 July 1998 to the end of 31 May 1999.

previous year means the financial year commencing on 1 July 1997.

In this Schedule:

base assistance amount means the amount worked out using the formula:

where:

PYBAA (previous year base assistance amount) means $15,828,423,529.

PYIF (previous year index factor) means the index factor for the previous year.

PYPF (previous year population factor) means the population factor for the previous year.

For the purposes of section 11A, the revenue replacement payment to be made to a State is worked out using the formula:

where:

ABA (alcohol base amount) means the sum of:

(a) the amounts determined by the Commissioner, before 15 June 1999, to be:

(i) the additional amount of sales tax on taxable dealings to which the Sales Tax (Surcharge) Acts relate that was collected during the pre-1 June period because of a Commonwealth surcharge; and

(ii) the additional amount of sales tax on taxable dealings to which the Sales Tax (Surcharge) Acts relate that the Commissioner estimates to be likely to be collected during the month of June 1999 because of a Commonwealth surcharge; and

(b) if the June 1998 ABA amount exceeds the June 1998 ABA estimate amount—the amount of the excess;

less the sum of:

(c) if the June 1998 ABA estimate amount exceeds the June 1998 ABA amount—the amount of the excess; and

(d) the amount determined by the Commissioner to be the additional administrative costs incurred by the Commonwealth in the grant year because of that surcharge or those surcharges.

AS (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.

PBA (petroleum base amount) means the sum of:

(a) the amounts determined by the CEO, before 15 June 1999, to be:

(i) the additional amount of customs duty on goods falling to subheadings of Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 that was collected during the pre-1 June period because of a Commonwealth surcharge; and

(ii) the additional amount of customs duty on goods falling to subheadings of Chapter 27 of Schedule 3 to the Customs Tariff Act 1995 that the CEO estimates to be likely to be collected during the month of June 1999 because of a Commonwealth surcharge; and

(iii) the additional amount of excise duty on goods falling to items 11 and 12 of the Schedule to the Excise Tariff Act 1921 that was collected during the pre-1 June period because of a Commonwealth surcharge; and

(iv) the additional amount of excise duty on goods falling to items 11 and 12 of the Schedule to the Excise Tariff Act 1921 that the CEO estimates to be likely to be collected during the month of June 1999 because of a Commonwealth surcharge;

(b) if the June 1998 PBA amount exceeds the June 1998 PBA estimate amount—the amount of the excess;

less the sum of:

(c) if the June 1998 PBA estimate amount exceeds the June 1998 PBA amount—the amount of the excess; and

(d) the amount determined by the CEO to be the additional administrative costs incurred by the Commonwealth in the grant year because of those surcharges.

PS (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.

TBA (tobacco base amount) means the sum of:

(a) the amounts determined by the CEO, before 15 June 1999, to be:

(i) the additional amount of customs duty on goods falling to subheadings of Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 that was collected during the pre-1 June period because of a Commonwealth surcharge; and

(ii) the additional amount of customs duty on goods falling to subheadings of Chapter 24 of Schedule 3 to the Customs Tariff Act 1995 that the CEO estimates to be likely to be collected during the month of June 1999 because of a Commonwealth surcharge; and

(iii) the additional amount of excise duty on goods falling to items 6, 7 and 8 of the Schedule to the Excise Tariff Act 1921 that was collected during the pre-1 June period because of a Commonwealth surcharge; and

(iv) the additional amount of excise duty on goods falling to items 6, 7 and 8 of the Schedule to the Excise Tariff Act 1921 that the CEO estimates to be likely to be collected during the month of June 1999 because of a Commonwealth surcharge; and

(b) if the June 1998 TBA amount exceeds the June 1998 TBA estimate amount—the amount of the excess;

less the sum of:

(c) if the June 1998 TBA estimate amount exceeds the June 1998 TBA amount—the amount of the excess; and

(d) the amount determined by the CEO to be the additional administrative costs incurred by the Commonwealth in the grant year because of those surcharges.

TS (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.

In determining, for the purposes of subclause (1), 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, the CEO is to take into account the impact of the operation of:

(a) Customs Tariff Act 1995; orsection 19 of the

(b) Excise Tariff Act 1921;section 6A of the

as the case requires.

For the purposes of section 15C, the amount of fiscal contribution payable by a State is as follows:

(a) for a State other than Tasmania or the Australian Capital Territory—the amount worked out using the following formula:

(b) for Tasmania or the Australian Capital Territory—the amount worked out using the formula:

In this clause:

BA (base amount) means $300,000,000.

FC1997-98 means the amount of the 1997-98 fiscal contribution worked out using the formula set out in paragraph 9(1)(b) of Schedule 4 to this Act.

SP (state population) means the estimated population of the State on 31 December 1998.

TP (total population) means the estimated populations of all States on 31 December 1998.

[Minister’s second reading speech made in—

House of Representatives on 11 November 1998

Senate on 23 November 1998]

(146/98)