Federal Financial Relations (General Purpose Financial Assistance) Determination No. 38 (May 2012)

Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 38 was enacted in May 2012 under the Federal Financial Relations Act 2009. This legislative instrument was introduced to address the need for a robust framework for collaboration on policy development and service delivery, particularly through the provision of general purpose financial assistance to the states. The Federal Financial Relations Act 2009 was established to implement the payment provisions of the Intergovernmental Agreement on Federal Financial Relations, which commenced on 1 January 2009. This agreement was the result of extensive consultation with the states and was designed to facilitate the implementation of economic and social reforms in areas of national importance. The determination aims to provide ongoing financial support for the states' service delivery efforts, thereby improving transparency and ensuring that the Minister can meet their obligations under the Intergovernmental Agreement.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 38, which came into effect in May 2012, is an instrumental legislative instrument underpinning the broader framework of the Federal Financial Relations Act 2009. This Act governs the provision of general purpose financial assistance, including ongoing GST payments, to the States for any purpose they deem necessary. It applies to the Commonwealth Minister responsible for federal financial relations and the States, ensuring that the commitment to provide general purpose financial assistance as outlined in the Intergovernmental Agreement on Federal Financial Relations is fulfilled. The Act's jurisdictional reach is national, extending across all Australian states and territories, as it seeks to harmonise and facilitate collaboration in policy development and service delivery. Notably, the Act does not extend to disallowance under the Legislative Instruments Act 2003, which allows the Minister to make determinations without the risk of the instruments being annulled, thereby ensuring continuity in the provision of financial assistance as stipulated by the Intergovernmental Agreement.

Key Provisions

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 38, made under the Federal Financial Relations Act 2009, outlines the process for the Minister to credit amounts to the COAG Reform Fund for the purpose of providing general purpose financial assistance to the States (section 9(1)). This assistance is to be used by the States for any purpose and is part of the broader framework established by the Intergovernmental Agreement on Federal Financial Relations (IGA). The determination ensures that the payments are made in a prescribed manner, which is consistent with the obligations of the Commonwealth under the IGA. The Act imposes several obligations on the Minister. Firstly, the Minister is required to credit the specified amounts to the COAG Reform Fund, as per the determinations made under section 9(1). This ensures that the general purpose financial assistance is provided in a transparent and accountable manner. Secondly, the Minister must ensure that these determinations are legislative instruments and are registered on the Federal Register of Legislative Instruments. This requirement enhances the transparency and accessibility of the financial assistance arrangements. Moreover, the Minister has the obligation to consult extensively with the States, as mandated by the IGA, to maintain an effective and collaborative federal financial relations framework. The Federal Financial Relations Act 2009 and the associated determinations do not explicitly state specific offences, penalties, or civil/criminal consequences for breaches. However, the obligations and requirements outlined in the Act, such as the need for transparency and adherence to the prescribed manner of making payments, imply that any failure to comply with these provisions could result in administrative or legal consequences. Such consequences might include reviews, audits, or legal actions taken by the affected parties or the Commonwealth to ensure compliance with the obligations set out in the IGA and the Act. Given the nature of the financial assistance provided, non-compliance could also impact the States' ability to receive the necessary funds for their service delivery efforts.