Federal Financial Relations (General purpose financial assistance) Determination 2009 No. 4 (July)

Overview

The Federal Financial Relations Act 2009 was enacted to formalise the new framework for federal financial relations agreed upon in the Intergovernmental Agreement on Federal Financial Relations. This Act aims to ensure the provision of ongoing financial support for the states' service delivery efforts through various forms of financial assistance, including general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The Federal Financial Relations Act 2009 provides the legislative basis for these payments, which are crucial for facilitating economic and social reforms in areas of national importance. The Act was passed by the Australian Parliament to implement the payment provisions of the Intergovernmental Agreement, ensuring that financial assistance is provided in a transparent and accountable manner. The Minister's determinations in respect of general purpose financial assistance are legislative instruments and will be registered on the Federal Register of Legislative Instruments, although they will not be disallowable to ensure compliance with the Intergovernmental Agreement.

Scope and Application

The Federal Financial Relations Act 2009 applies to the Commonwealth Government and the States, establishing the legal framework for financial support mechanisms aimed at enhancing service delivery efforts across Australia. This Act facilitates the provision of general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments, as agreed under the Intergovernmental Agreement on Federal Financial Relations. The Act provides for the Minister to credit amounts to the COAG Reform Fund for general revenue assistance, excluding GST revenue grants, thereby supporting various state-level initiatives and projects. Geographically, the Act operates within the boundaries of the Commonwealth of Australia, affecting both federal and state entities engaged in service delivery and policy implementation. The Act does not extend to disallowable legislative instruments, ensuring the Minister can meet obligations under the Intergovernmental Agreement without the risk of disallowance. The scope of this legislation is further refined through subordinate instruments, which may detail specific payment criteria and processes.

Key Provisions

The Federal Financial Relations Act 2009 (section 9) requires the Minister to credit amounts to the COAG Reform Fund for the purpose of providing general purpose financial assistance to the states in the form of general revenue assistance other than GST revenue grants. This fund is established under the COAG Reform Fund Act 2008 and is designated as a Special Account under the Financial Management and Accountability Act 1997. The Act ensures that determinations by the Minister regarding general purpose financial assistance are legislative instruments and must be registered on the Federal Register of Legislative Instruments (section 9). However, these determinations are exempt from disallowance provisions to allow the Minister to fulfill obligations under the Intergovernmental Agreement (section 9(4)). The commencement of these determinations is effective on the day they are made (section 12). The Act imposes several obligations on the parties it governs. Firstly, the Commonwealth is obligated to provide ongoing financial support for the states' service delivery efforts through general purpose financial assistance, National Specific Purpose Payments (National SPPs), and National Partnership payments (section 3). These payments are intended to facilitate policy development, service delivery, and economic and social reforms in areas of national importance. Additionally, the Minister's determinations regarding general purpose financial assistance must be made in a prescribed manner and registered on the Federal Register of Legislative Instruments (section 9). The states, in turn, are expected to use the provided financial assistance for the purposes agreed upon under the Intergovernmental Agreement. The Federal Financial Relations Act 2009 does not explicitly outline specific offences, penalties, or consequences for breaches within the text provided. However, the legislation ensures that the Minister's determinations regarding general purpose financial assistance are legislative instruments and must be registered on the Federal Register of Legislative Instruments (section 9). The exemption from disallowance provisions implies that these determinations are not subject to disallowance, which could otherwise be a form of penalty or consequence for non-compliance. The Act's focus is more on the procedural clarity and transparency of the financial assistance process rather than detailing specific penalties for breaches. The Federal Financial Relations Act 2009, through its provisions for general purpose financial assistance, aims to provide a transparent and accountable framework for financial support to the states. By establishing the COAG Reform Fund and clarifying the legislative nature of the Minister's determinations, the Act ensures that the financial assistance process is well-defined and documented. The exemption from disallowance provisions is crucial for the Minister to meet obligations under the Intergovernmental Agreement effectively. Although specific penalties for breaches are not detailed in the provided text, the Act's emphasis on procedural clarity and registration of determinations underscores its intent to maintain a robust and transparent financial relations framework.