(1) The Commission shall inquire into and report to the Minister upon any matters:
(a) being matters relating to the making of a grant of assistance to a State, under section 96 of the Constitution, for local government purposes; or
(b) being matters relating to a grant of assistance made to a State, under section 96 of the Constitution, for local government purposes;
that are referred to the Commission by the Minister.
(2) In subsection ( 1), a reference to a grant of assistance to a State for local government purposes shall be read as a reference to a grant of moneys to the State for the purpose of being applied by the State in payments to local government authorities situated in the State, or by way of expenditure for purposes declared by the regulations to be purposes to which this subsection applies.