Federal Financial Relations (General Purpose Financial Assistance) Determination No. 21 (December 2010)

Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 21, enacted in 2010, aims to provide a clear framework for the administration of general purpose financial assistance as part of the broader Intergovernmental Agreement on Federal Financial Relations. This agreement, which commenced on 1 January 2009, seeks to support states' service delivery efforts through various financial measures, including general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The Federal Financial Relations Act 2009 was introduced to operationalise these provisions, with the determination clarifying the Minister's role in crediting amounts to the COAG Reform Fund for general revenue assistance, excluding GST revenue grants. The determinations are legislative instruments, registered on the Federal Register of Legislative Instruments, and are exempt from disallowance to ensure the Minister can meet the obligations under the Intergovernmental Agreement. This framework is intended to enhance transparency and facilitate the effective implementation of the new federal financial relations.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 21, 2010, issued under the Federal Financial Relations Act 2009, pertains to the administration of general purpose financial assistance to the Australian states. This assistance is to be used for any purpose by the states, excluding Goods and Services Tax (GST) revenue grants, and is intended to support the states' service delivery efforts as part of the broader federal financial relations framework established by the Intergovernmental Agreement on Federal Financial Relations. The determination applies to the Commonwealth Minister who is responsible for crediting amounts to the Council of Australian Governments (COAG) Reform Fund. This fund, established under the COAG Reform Fund Act 2008, serves as a Special Account for the purposes of the Financial Management and Accountability Act 1997. The Minister's determinations regarding the general purpose financial assistance are legislative instruments and are registered on the Federal Register of Legislative Instruments; however, they are exempt from disallowance provisions to ensure that the Minister can fulfill the obligations under the Intergovernmental Agreement. The determination commenced on the day it was made, solidifying its immediate applicability.

Key Provisions

The Federal Financial Relations (General purpose financial Assistance) Determination No. 21 primarily focuses on the implementation of general purpose financial assistance as per the Intergovernmental Agreement on Federal Financial Relations (section 1). The Act requires the Minister to credit amounts to the COAG Reform Fund for providing general revenue assistance to the states, which can be used for any purpose (section 3). This fund is established under the COAG Reform Fund Act 2008 and is a Special Account as per the Financial Management and Accountability Act 1997 (section 4). To ensure transparency, the Minister's determinations regarding this assistance are legislative instruments and are registered on the Federal Register of Legislative Instruments (section 5). Notably, these determinations are exempt from the disallowance provisions, enabling the Minister to meet the obligation under the Intergovernmental Agreement to make payments in a prescribed manner (section 6). Under this Act, the Minister's obligations include ensuring that the amounts credited to the COAG Reform Fund are used strictly for the purpose of providing general revenue assistance to the states (section 7). The Minister must make these payments in a manner prescribed by the Intergovernmental Agreement, and the exemption from disallowance provisions facilitates compliance with this requirement (section 8). The legislative instruments created through the Minister’s determinations must be registered on the Federal Register of Legislative Instruments, thereby maintaining transparency (section 9). The Act imposes civil and criminal consequences for non-compliance with its provisions. While specific penalties are not outlined in the text, breaches of the Intergovernmental Agreement or failure to make prescribed payments could lead to legal repercussions. The Act's focus on transparency and prescribed payment methods underscores the importance of adhering to its stipulations to avoid potential legal issues (section 10). The Federal Financial Relations (General purpose financial Assistance) Determination No. 21 also sets out the commencement date of the determination, which is the day it was made (section 11). This ensures that the provisions of the Act are immediately effective upon their creation, providing a clear and timely framework for the implementation of general purpose financial assistance.