Federal Financial Relations (General purpose financial assistance) Determination 2009 No. 6 (September)

Overview

The Federal Financial Relations Act 2009 was enacted to implement the payment provisions of the Intergovernmental Agreement on Federal Financial Relations, which commenced on 1 January 2009. This legislation was introduced by the Commonwealth Parliament to ensure the ongoing financial support for the States' service delivery efforts, thereby enhancing the collaboration on policy development and service delivery across various sectors. The Act aims to facilitate the implementation of economic and social reforms in areas of national importance by providing general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. These payments are intended to support key service delivery sectors, specified outputs or projects, and to reward jurisdictions that deliver on nationally significant reforms. The Act specifically addresses the need for general purpose financial assistance by allowing the Minister to credit amounts to the COAG Reform Fund for this purpose. This assistance is provided in the form of general revenue assistance other than GST revenue grants. The legislation also ensures that determinations made by the Minister regarding general purpose financial assistance are legislative instruments and will be registered on the Federal Register of Legislative Instruments, thereby improving transparency. Importantly, these determinations are exempt from the disallowance provisions, ensuring that the Minister can meet the obligations under the Intergovernmental Agreement. The Act's provisions clarify that such determinations would not be legislative instruments within the meaning of the Legislative Instruments Act 2003, thereby allowing for streamlined and efficient administration of the financial assistance framework.

Scope and Application

The Federal Financial Relations Act 2009 applies to the Commonwealth government and the States and Territories of Australia. It is designed to implement the financial provisions of the Intergovernmental Agreement on Federal Financial Relations, which commenced on 1 January 2009, and facilitates the ongoing provision of financial assistance to the States. This assistance includes general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments, aimed at supporting various service delivery sectors and reforms. The Act specifically provides for the Minister to credit amounts to the COAG Reform Fund to deliver general purpose financial assistance, excluding GST revenue grants. This assistance is intended to support the States in their service delivery efforts and policy development. Determinations made by the Minister regarding these payments are legislative instruments and are registered on the Federal Register of Legislative Instruments, but they are exempt from disallowance to ensure the Minister can fulfill their obligations under the Intergovernmental Agreement. The Act's commencement date for its provisions is the day the determinations are made.

Key Provisions

The Federal Financial Relations Act 2009 includes several key provisions regarding the provision of financial assistance to states. Section 9(1) outlines the authority of the Minister to credit amounts to the COAG Reform Fund for the purpose of providing general purpose financial assistance to the states, other than GST revenue grants. This assistance is intended to support the states' service delivery efforts. The Act specifies that the Minister's determinations regarding these payments will be registered on the Federal Register of Legislative Instruments, enhancing transparency (Section 9(2)). Importantly, these determinations are legislative instruments but are exempt from disallowance provisions, ensuring that the Minister can meet their obligations under the Intergovernmental Agreement without interference (Section 9(3)). The determinations take effect on the day they are made, which is a practical measure to ensure timely implementation of the assistance. The Act imposes specific obligations on the Minister regarding the provision of general purpose financial assistance. Under Section 9(1), the Minister must credit amounts to the COAG Reform Fund to provide the assistance, ensuring that the funds are available for the states to use for any purpose. Additionally, Section 9(2) mandates that these determinations be registered on the Federal Register of Legislative Instruments, enhancing accountability and transparency. The exemption from disallowance under Section 9(3) ensures that the Minister can make these determinations without the risk of the payments being invalidated by the legislative process, thereby fulfilling the commitment made under the Intergovernmental Agreement. Breaches of the obligations and requirements set out in the Act may lead to legal consequences. While the Act does not explicitly outline specific offences or penalties for non-compliance, it is implied that failure to credit the amounts to the COAG Reform Fund as required or to register the determinations on the Federal Register could result in legal challenges or administrative actions. These actions might aim to ensure compliance with the Act's requirements, although specific penalties are not detailed within the Act itself. The Minister's ability to meet their obligations is crucial to maintaining the integrity of the financial support framework for the states.