Federal Financial Relations Act 2009
No. 11, 2009
Compilation No. 14
Compilation date: 11 December 2024
Includes amendments: Act No. 138, 2024
About this compilation
This compilation
This is a compilation of the Federal Financial Relations Act 2009 that shows the text of the law as amended and in force on 11 December 2024 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Short title
2 Commencement
3 Object
4 Definitions
Part 2—General revenue assistance
Division 1—GST revenue grants
5 GST revenue grants
6 GST revenue
7 Determination of population of a State
8 GST revenue sharing relativity
8A Pool top‑up for a payment year
Division 2—Other general revenue assistance
9 General purpose financial assistance
Part 2A—National skills and workforce development payments
12A National skills and workforce development payments
Part 3—National specific purpose payments
13 National specific purpose payments for disability services
Part 3A—National health reform payments
15A National health reform payments
Part 3B—Payments relating to housing, homelessness and housing affordability matters
15B Simplified outline of this Part
15C Payments relating to housing, homelessness and housing affordability matters—primary housing agreement and supplementary housing agreement
15D Payments relating to housing, homelessness and housing affordability matters—designated housing agreement
Part 3C—Temporary energy bill relief
15E Payments relating to temporary energy bill relief
15F Amount of financial assistance
Part 4—National partnership payments
16 National partnership payments
Part 5—Payment of grants
17 Advance payments for financial year
18 Overpayment or underpayment of grant
19 Minister may fix amounts, and times of payments, of financial assistance
20 Repayment if condition not fulfilled
Part 6—Miscellaneous
21 Minister to have regard to Intergovernmental Agreement and other agreements
22
Overview
The Federal Financial Relations Act 2009 was enacted to provide financial assistance to the States, the Australian Capital Territory, and the Northern Territory, addressing the need for ongoing financial support for the delivery of services by the States. The Act was enacted by the Australian Parliament and its main object is to provide financial assistance to the States for general revenue, specific purpose payments, and national partnership agreements. The Act also aims to offer financial support for temporary and targeted relief from high energy bills for households and small businesses. The Act encompasses various forms of financial assistance, including general revenue assistance, national specific purpose payments, national health reform payments, and payments relating to housing, homelessness, and housing affordability matters, all to be spent by the States in accordance with specific agreements.
Scope and Application
The Federal Financial Relations Act 2009 applies to the States, the Australian Capital Territory, and the Northern Territory, providing them with financial assistance to support the delivery of services. The Act facilitates the provision of general revenue assistance, including GST revenue grants, national specific purpose payments, national health reform payments, payments relating to housing, homelessness, and housing affordability matters, as well as national partnership payments. The Act also provides financial support for temporary and targeted relief from high energy bills for households and small businesses. The Minister has the authority to make determinations regarding the amounts and conditions of financial assistance, which must be done in accordance with agreements such as the Intergovernmental Agreement on Federal Financial Relations, the National Skills Agreement, the National Health Reform Agreement, primary housing agreements, supplementary housing agreements, designated housing agreements, and temporary energy bill relief agreements. These agreements outline specific areas of service delivery and expenditure for which the financial assistance is to be used. The Act extends its application through subordinate instruments, such as legislative instruments, which are used to make determinations regarding various aspects of financial assistance, including amounts, conditions, and indexation amounts.
Key Provisions
- The Federal Financial Relations Act 2009 (Cth) provides financial assistance to the states and territories to support various services and initiatives. The main sections of the Act outline the different types of financial assistance available, such as GST revenue grants (s 5), general purpose financial assistance (s 9), national specific purpose payments (s 13), national health reform payments (s 15A), and national partnership payments (s 16). The Act also includes provisions for payments relating to housing, homelessness, and housing affordability matters (ss 15B–15D), and temporary energy bill relief (ss 15E–15F). The Act imposes certain obligations on the states and territories, such as spending the financial assistance in accordance with specific agreements or conditions, and providing information to the Minister as required (ss 4, 5, 6, 7, 8, 15C(8), 15D(3), 15E(4), 16(3)). The Act also sets out the process for determining the amounts of financial assistance and the conditions for payment (ss 5, 6, 8, 9, 12A(2), 13(2), 15A(1), 15B(2), 15C(2), 15D(1), 15E(2), 16(1), 19). Offences and penalties for non-compliance with the Act are not explicitly stated, but there are provisions for repayment of overpayments (s 18) and conditions for repayment if a state does not fulfil a condition in respect of a payment (s 20).
- The Act requires the Minister to have regard to certain agreements when making determinations under the Act, such as the Intergovernmental Agreement on Federal Financial Relations, skills and workforce development agreements, housing agreements, and temporary energy bill relief agreements (s 21). The Act also provides for the delegation of certain powers to Senior Executive Service (SES) employees or acting SES employees in the Department (s 23). Regulations may be made under the Act to prescribe matters required or permitted by the Act, or necessary or convenient to carry it out or give it effect (s 24). The Act appropriates payments under certain parts of the Act from the Consolidated Revenue Fund (s 22).
- Area of Law
- Administrative Law
- Public Finance Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Regulatory Standards
- Reporting & Disclosure Obligations
- Compliance Obligations
- Delegation
- Delegation
