Federal Financial Relations (General Purpose Financial Assistance) Determination No. 13 (April 2010)

Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 13 was introduced in 2010 to operationalise provisions within the Federal Financial Relations Act 2009, particularly concerning the provision of general purpose financial assistance to the States. The Federal Financial Relations Act 2009 itself was enacted to implement the Intergovernmental Agreement on Federal Financial Relations, which aims to facilitate collaboration between the Commonwealth and the States on policy development and service delivery, particularly through financial support mechanisms. The new federal financial framework, which commenced on 1 January 2009, includes provisions for general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The explanatory statement clarifies that the Minister’s determinations regarding general purpose financial assistance are legislative instruments, ensuring transparency and registration on the Federal Register of Legislative Instruments. Importantly, these determinations are exempt from disallowance provisions, enabling the Minister to fulfill obligations under the Intergovernmental Agreement.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 13 applies to the provision of general purpose financial assistance as outlined under the Federal Financial Relations Act 2009. This includes the Minister's obligation to credit amounts to the COAG Reform Fund for the purpose of providing financial support to the states. These funds are intended to be used by the states for any purpose, thereby ensuring flexibility in their allocation. The Act applies to the Commonwealth Minister and the states, with the latter being the recipients of the financial assistance. The geographic reach of this Act is national, encompassing all states and territories within Australia. The determination does not specify exclusions or exemptions; however, it is clear that the funds are intended to be used by the states for any purpose, suggesting a broad application. The Act extends its application through legislative instruments, which are registered on the Federal Register of Legislative Instruments and are not subject to disallowance, ensuring the Minister can fulfill the commitment under the Intergovernmental Agreement.

Key Provisions

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 13 under the Federal Financial Relations Act 2009 (sections 9(1)) provides for the Minister to credit amounts to the COAG Reform Fund for the purpose of providing general purpose financial assistance to the States. This financial assistance is intended to support the states in their service delivery efforts and is to be used for any purpose by the states, as outlined in the Intergovernmental Agreement on Federal Financial Relations. It is important to note that this assistance is in the form of general revenue assistance and does not include GST revenue grants (section 9(1)). Under this Determination, the Minister has the obligation to make payments of general purpose financial assistance in a prescribed manner, as stipulated by the Intergovernmental Agreement. This obligation is further clarified in the COAG Reform Fund Act 2008, which establishes the COAG Reform Fund and specifies that it is a Special Account under the Financial Management and Accountability Act 1997. To enhance transparency, the Minister's determinations regarding general purpose financial assistance are legislative instruments and will be registered on the Federal Register of Legislative Instruments. However, these determinations will not be subject to disallowance, which means they cannot be invalidated by either House of Parliament (section 5 of the Legislative Instruments Act 2003). This exemption from disallowance is intended to allow the Minister to meet their obligation to make payments as required by the Intergovernmental Agreement. The Determination comes into effect on the day it was made, which was in April 2010. The provisions of the Determination are designed to facilitate the ongoing financial support for the states' service delivery efforts, as agreed upon in the Intergovernmental Agreement on Federal Financial Relations. The overarching aim is to ensure a robust framework for collaboration between the Commonwealth and the states, enabling the implementation of economic and social reforms in areas of national importance. In the event of a breach of the requirements set out in this Determination, there may be civil or criminal consequences, depending on the nature and severity of the breach. However, the specific penalties or consequences are not outlined in the Explanatory Statement and would need to be referred to in the relevant sections of the Federal Financial Relations Act 2009 and other applicable legislation. It is essential for the parties and entities governed by this Determination to adhere to the obligations and requirements to avoid potential penalties or consequences.