Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011)

Administered by Department of the Treasury

Legislation au F2011L02346 Not in force Legislative Instrument

Legislation content

Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011)

as amended

made under section 9 of the

Federal Financial Relations Act 2009

This compilation was prepared on 10 February 2012
taking into account amendments up to Federal Financial Relations (National Partnership payments) Determination No. 31 (October 2011) Amendment Determination No. 1

Prepared by the Department of the Treasury

 

 

 

 

 

 

 

 

 

 

 

 

 

Part 1 — preliminary

Name of Determination

  1.           This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011).

Commencement

2.             This determination commences on the day on which this determination is made.

Definitions

3.             The following definitions are used throughout this determination:

Act means the Federal Financial Relations Act 2009.

COAG Reform Fund means the COAG Reform Fund established by section 5 of the COAG Reform Fund Act 2008.

Drawing right means a drawing right issued under section 27 of the Financial Management and Accountability Act 1997.

Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.

State includes the Australian Capital Territory and the Northern Territory.

Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003

4.             Subsection 9(5) of the Act provides that this determination is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to this determination.

PArt 2 — Purpose

Provision of financial assistance

5.             This determination is made, in accordance with section 9 of the Act, for the purpose of providing financial support for the States’ service delivery efforts through general purpose financial assistance to be used by the States for any purpose.

Terms and conditions

6.             Subsection 9(2) of the Act requires that an amount determined under subsection 9(1) must be credited to the COAG Reform Fund.

7.             The COAG Reform Fund Act 2008 established the COAG Reform Fund and specifies that it is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

8.             Subsection 7(2) of the COAG Reform Fund Act 2008 requires that the terms and conditions on which financial assistance is granted through the COAG Reform Fund are to be set out in a written agreement between the Commonwealth and the State.

9.             The terms and conditions for all payments of general purpose financial assistance are provided in ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement.  Schedule 1 to this determination provides a summary of the relevant provisions for general purpose financial assistance.

Part 3 — General Purpose Financial Assistance

Determination

10.         In accordance with subsection 9(1) of the Act, the amounts specified in Table 1 are to be credited to the COAG Reform Fund before being paid on 21 October 2011 to the States specified in that table for the purpose of making a grant of general purpose financial assistance to those States.

Table 1: General Purpose financial assistance for payment on 21 October 2011

 

11.         Schedule 2 to this determination provides further information on these payments

12.         The terms and conditions for all payments of general purpose financial assistance are provided in ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement.

Drawing rights limits

13.         Subsection 9(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making a grant of general purpose financial assistance in the financial year starting on 1 July 2011 must not exceed $1,500,000,000.

14.         The amounts specified in Table 2 are the total amounts determined in the 2011-12 financial year in respect of general purpose financial assistance, including this determination.

Table 2: Total cumulative payments of general purpose financial assistance in 2011-12

 

15.         The total amount determined for payment of general purpose financial assistance to date in the 2011-12 financial year does not exceed the general drawing rights limit.

SChedule 1

Summary of relevant agreements for general purpose financial assistance 21 October 2011

Payment title

Purpose

Relevant agreement

Royalty payments

 

 

— Offshore Petroleum and Greenhouse Gas Storage Act 2006

The Commonwealth provides general purpose financial assistance to Western Australia from royalties payable under the Offshore Petroleum (Royalty) Act 2006 in respect of the North West Shelf oil and gas project off the coast of Western Australia. The Commonwealth collects these royalties because it has jurisdiction over off‑shore areas.

These royalties will be shared between the Commonwealth (approximately one third) and Western Australia (approximately two thirds). These payment arrangements are in accordance with section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

Schedule D – Payment arrangement of the Intergovernmental Agreement

Compensation for impact on royalties of excise amendment

The Commonwealth provides general purpose financial assistance to compensate Western Australia for the loss of royalty revenue resulting from the removal in the 2008-09 Budget of the exemption of condensate from crude oil excise.

Schedule D – Payment arrangement of the Intergovernmental Agreement

ACT Municipal Services

The Commonwealth provides general purpose financial assistance to the Australian Capital Territory to:

assist in meeting the additional municipal costs which arise from Canberra's role as the national capital; and

compensate the Australian Capital Territory for additional costs resulting from the national capital planning influences on the provision of water and sewerage services.

Schedule D – Payment arrangement of the Intergovernmental Agreement

Schedule 2

Amounts of general purpose financial assistance on 21 October 2011 ($)

 

 

 

 

 

 

 

Notes to the Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011)

Note 1

The Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011) (in force under section 9 of the Federal Financial Relations Act 2009) as shown in this compilation is amended as indicated in the Tables below.

Table of Instruments

Title

Date of FRLI registration

Date of
commencement

Application, saving or
transitional provisions

Federal Financial Relations (National Partnership payments) Determination No. 31 (October 2011)

11 Nov 2011 (see F2011L02346)

19 Oct 2011

 

Federal Financial Relations (National Partnership payments) Determination No. 31 (October 2011) Amendment Determination No. 1

8 Feb 2011 (see F2012L00203)

19 Dec 2011

—

Table of Amendments

ad. = added or inserted      am. = amended      rep. = repealed      rs. = repealed and substituted

Provision affected

How affected

S. 1.................

am. F2012L00203

 

 

 

 

 

 

 

 

 

 

 

 

 

Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 31 (October 2011), as amended, is a legislative instrument made under section 9 of the Federal Financial Relations Act 2009. It was enacted to address the need for providing financial support for the states' service delivery efforts through general purpose financial assistance. The determination ensures that an amount determined under the Act is credited to the COAG Reform Fund, as established by the COAG Reform Fund Act 2008, and specifies the terms and conditions for the grant of such assistance. The Commonwealth Parliament, through this determination, aims to facilitate financial transfers between the Commonwealth and the states, aligning with the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009. The policy objective is to provide financial support for states' service delivery efforts through general purpose financial assistance.

Scope and Application

The Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011) applies to the financial assistance provided by the Commonwealth to the states and territories of Australia. This determination is made under section 9 of the Federal Financial Relations Act 2009, and it serves to provide financial support for the states' service delivery efforts through general purpose financial assistance. The financial assistance is to be used by the states for any purpose, and the amounts are to be credited to the COAG Reform Fund. The fund was established by the COAG Reform Fund Act 2008 and is a Special Account for the purposes of the Financial Management and Accountability Act 1997. The terms and conditions of the financial assistance are set out in 'Schedule D — Payment Arrangements' to the Intergovernmental Agreement. The determination also includes a limit on the total amount that can be credited to the COAG Reform Fund for the purpose of making a grant of general purpose financial assistance in the financial year starting on 1 July 2011, which is not to exceed $1,500,000,000. The application of the determination is national, covering all states and territories of Australia, as well as the Commonwealth. The determination is not subject to disallowance under section 42 of the Legislative Instruments Act 2003, as provided by subsection 9(5) of the Federal Financial Relations Act 2009. The application of the determination may be extended or restricted through subordinate instruments, as necessary. There are no stated exclusions or exemptions from the application of this determination, although specific terms and conditions may apply to individual payments of general purpose financial assistance as outlined in 'Schedule D — Payment Arrangements' to the Intergovernmental Agreement.

Key Provisions

The Federal Financial Relations (General purpose financial assistance) Determination No. 31 (October 2011), made under section 9 of the Federal Financial Relations Act 2009, provides for the distribution of general purpose financial assistance to states and territories. This financial support is intended to aid the states in their service delivery efforts and can be used for any purpose by the recipient states (section 5). The amounts specified in Table 1 of the determination are to be credited to the COAG Reform Fund before being disbursed to the relevant states on 21 October 2011 (section 10). The terms and conditions for these payments are detailed in 'Schedule D — Payment Arrangements' of the Intergovernmental Agreement on Federal Financial Relations (section 12). The determination also sets a cap of $1,500,000,000 for the total amount that can be credited to the COAG Reform Fund for the purpose of making a grant of general purpose financial assistance in the 2011-12 financial year (section 13). The obligations imposed by this determination include crediting specified amounts to the COAG Reform Fund for disbursement as general purpose financial assistance to the states and territories. This financial assistance must be provided in accordance with the terms and conditions outlined in 'Schedule D — Payment Arrangements' of the Intergovernmental Agreement. Additionally, the determination mandates that the total amount credited to the COAG Reform Fund for this purpose in the 2011-12 financial year must not exceed $1,500,000,000. The determination further specifies that the payment of general purpose financial assistance must be made before 21 October 2011 (section 10). There are no specific offences, penalties, or consequences outlined in this determination for breaches of its provisions. However, the determination is subject to the general legal consequences that may arise from non-compliance with federal legislative instruments, such as potential judicial review or administrative action for failure to adhere to the terms and conditions set out in the Intergovernmental Agreement. The determination itself does not prescribe any maximum penalties for breaches, but any breaches could potentially result in legal actions under other applicable laws and regulations.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.