(b) the index numbers in relation to the 3 quarters that immediately preceded that quarter,
by the sum of—
(c) the index number in relation to the March quarter in the year immediately preceding that year; and
(d) the index numbers in relation to the 3 quarters that immediately preceded that last-mentioned quarter;
“index number”, in relation to a quarter, means the All Groups Consumer Price Index number, being the weighted average of the 6 State capital cities, published by the Statistician in respect of that quarter;
“Statistician” means the Australian Statistician;
“the 1985-86 year” means the year that commenced on 1 July 1985;
“the 1986-87 year” means the year commencing on 1 July 1986;
“the 1987-88 year” means the year commencing on 1 July 1987;
“year” means a financial year;
“year to which this Act applies” means the 1985-86 year and each of the next 2 succeeding years.
(2) Subject to sub-section (3), if at any time the Statistician publishes an index number in respect of a quarter in substitution for an index number previously published by the Statistician in respect of that quarter, the publication of the later index number shall be disregarded for the purposes of this Act.
(3) If at any time the Statistician changes the reference base for the Consumer Price Index, then, for the purposes of the application of this Act, regard shall be had only to index numbers published in terms of the new reference base.
Determination of population of a State
4. (1) Subject to sub-section (3), a reference in this Act to the estimated population of a State on 31 December in a specified year is a reference to the population of the State on that date as determined by the Statistician within the period specified in sub-section (2).
(2) The determination by the Statistician for the purposes of sub-section (1) of the estimated population of a State on 31 December in a specified year shall be made after that date and before 10 June next following that date.
(3) The Statistician, in making a determination under this section of the estimated population of a State, shall, where practicable, consult with the official Statistician of the State and shall have regard to the latest statistics in relation to population available to the Statistician on the day on which the determination is made.
PART II—FINANCIAL ASSISTANCE GRANTS
Interpretation
5. In this Part—
“adjusted population figure”, in relation to a State, in relation to a year to which this Act applies, means—
(a) in the case of a State other than Victoria—the estimated population of the State on 31 December in that year multiplied by the adjustment factor in relation to that State; and
(b) in the case of Victoria—the estimated population of Victoria on 31 December in that year;
“adjusted total population”, in relation to a year to which this Act applies, means the sum of the adjusted population figures in relation to all of the States in relation to that year;
“adjustment factor” means—
(a) in relation to New South Wales—1.008;
(b) in relation to Queensland—1.416;
(c) in relation to Western Australia—1.455;
(d) in relation to South Australia—1.397; and
(e) in relation to Tasmania—1.605.
Financial assistance grants
6. (1) Each State is entitled to the payment by way of financial assistance, in relation to the 1985-86 year, of a financial assistance grant calculated in accordance with the formula 
, where—
A is $9,058,428,568;
B is the index factor in relation to that year;
C is the adjusted population figure in relation to that State in relation to that year; and
D is the adjusted total population in relation to that year.
(2) Each State is entitled to the payment by way of financial assistance, in relation to each of the following years, namely, the 1986-87 year and the 1987-88 year, of a financial assistance grant calculated in accordance with the formula 
, where—
A is 1.02;
B is the sum of the financial assistance grants that are, or would but for section 11 be, payable to the States under this section in relation to the year immediately preceding the year concerned;
C is the index factor in relation to that year;
D is the adjusted population figure in relation to that State in relation to that year; and
E is the adjusted total population in relation to that year.
PART III—HEALTH GRANTS
Interpretation
7. In this Part—
“adjusted population figure”, in relation to a State, in relation to a year to which this Act applies, means—
(a) in the case of a State other than Victoria—the estimated population of the State on 31 December in that year multiplied by the adjustment factor in relation to that State; and
(b) in the case of Victoria—the estimated population of Victoria on 31 December in that year;
“adjusted total population”, in relation to a year to which this Act applies, means the sum of the adjusted population figures in relation to all of the States in relation to that year;
“adjustment factor” means—
(a) in relation to New South Wales—1.14148;
(b) in relation to Queensland—0.49352;
(c) in relation to Western Australia—1.38424;
(d) in relation to South Australia—1.59883; and
(e) in relation to Tasmania—1.59699.
Health grants
8. (1) Each State is entitled to the payment by way of financial assistance, in relation to the 1985-86 year, of a health grant calculated in accordance with the formula 
, where—
A is $1,373,626,098;
B is the index factor in relation to that year;
C is the adjusted population figure in relation to that State in relation to that year; and
D is the adjusted total population in relation to that year.
(2) Each State is entitled to the payment by way of financial assistance, in relation to each of the following years, namely, the 1986-87 year and the 1987-88 year, of a health grant calculated in accordance with the formula 
, where—
A is 1.02;
B is the sum of the health grants that are, or would but for section 11 be, payable to the States under this section in relation to the year immediately preceding the year concerned;
C is the index factor in relation to that year;
D is the adjusted population figure in relation to that State in relation to that year; and
E is the adjusted total population in relation to that year.
PART IV—SPECIAL REVENUE ASSISTANCE GRANTS TO CERTAIN STATES
Interpretation
9. In this Part—
“adjusted population figure”, in relation to a State in relation to a year to which this Act applies, means—
(a) in the case of a State other than Victoria—the estimated population of the State on 31 December in that year multiplied by the adjustment factor in relation to that State; and
(b) in the case of Victoria—the estimated population of Victoria on 31 December in that year;
“adjusted total population”, in relation to a year to which this Act applies, means the sum of the adjusted population figures in relation to all of the States in relation to that year;
“adjustment factor” means—
(a) in relation to New South Wales—1.008;
(b) in relation to Queensland—1.420;
(c) in relation to Western Australia—1.460;
(d) in relation to South Australia—1.480; and
(e) in relation to Tasmania—1.695.
Special revenue assistance grants
10. (1) South Australia and Tasmania are each entitled to the payment by way of financial assistance, in relation to the 1985-86 year, of a special revenue assistance grant calculated in accordance with the formula 
, where—
A is $9,058,428,568;
B is the index factor in relation to that year;
C is the adjusted population figure in relation to the State concerned in relation to that year;
D is the adjusted total population in relation to that year; and
E is the financial assistance grant that is, or would but for section 11 be, payable to that State under section 6 in relation to that year.
(2) South Australia and Tasmania are each entitled to the payment by way of financial assistance, in relation to the 1986-87 year, of a special revenue assistance grant equal to one-half of the special revenue assistance grant that is, or would but for section 11 be, payable to that State under sub-section (1) of this section in relation to the 1985-86 year.
PART V—MISCELLANEOUS
Reduction of grants for 1985-86 to take account of certain advance payments
11. The sum of the amounts that would, but for this section, be payable to a State under this Act in relation to the 1985-86 year shall be reduced by an amount equal to the sum of any amounts paid to the State under section 23 of the repealed States (Tax Sharing and Health Grants) Act 1981.
Advance payments to States for 1988-89
12. The Treasurer may, during the period of 6 months commencing on 1 July 1988, make payments to a State of amounts not exceeding in the aggregate one-half of the sum of the amounts payable to the State under this Act in relation to the 1987-88 year.
Appropriation
13. Payments under this Act shall be made out of the Consolidated Revenue Fund, which is appropriated accordingly.
Advance payments
14. 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 in relation to a year.
Treasurer may fix amounts, and times of payments, of financial assistance
15. Financial assistance payable to a State under this Act shall be paid in such amounts, and at such times, as the Treasurer determines in writing.
Determinations to be presumed to be correct
16. A determination made by the Statistician under section 4 shall, for the purposes of this Act, be conclusively presumed to be correct.
Regulations
17. The Governor-General may make regulations, not inconsistent with this Act, prescribing matters necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Repeals
18. The following Acts are repealed:
States (Tax Sharing and Health Grants) Act 1981
States (Tax Sharing and Health Grants) Amendment Act 1982
States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1982
States (Tax Sharing and Health Grants) Amendment Act 1983
States (Tax Sharing and Health Grants) Amendment Act (No. 2) 1983
States (Tax Sharing and Health Grants) Amendment Act 1984.
[Minister’s second reading speech made in—
House of Representatives on 11 September 1985
Senate on 26 November 1985]
