Federal Financial Relations (General purpose financial assistance) Determination No. 53 (August 2013)

Overview

The Federal Financial Relations Act 2009, enacted by the Commonwealth Parliament, was introduced to establish a new framework for federal financial relations in Australia, aiming to facilitate economic and social reforms in areas of national importance. This legislation came into effect on 1 January 2009 and implements the payment provisions of the Intergovernmental Agreement on Federal Financial Relations (IGA) through mechanisms such as general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The Act ensures ongoing financial support for the states’ service delivery efforts, with the objective of enhancing transparency and accountability through the registration of legislative instruments on the Federal Register of Legislative Instruments. The Minister’s determinations concerning general purpose financial assistance, while subject to consultation with the states, are not disallowable, thereby allowing the Minister to meet obligations under the IGA.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 53, made under the Federal Financial Relations Act 2009, applies to the provision of general purpose financial assistance to the states in the form of general revenue assistance, excluding GST revenue grants. This determination is designed to support the states in their service delivery efforts and is integral to the broader framework established by the Intergovernmental Agreement on Federal Financial Relations (IGA). The IGA, which commenced on 1 January 2009, outlines the commitments of the Commonwealth to provide ongoing financial support to the states through various forms of assistance, including general purpose financial assistance. The determination specifies that the Minister's determinations regarding these payments are legislative instruments that will be registered on the Federal Register of Legislative Instruments, although they will not be subject to disallowance. This exemption from disallowance is intended to facilitate the Minister's obligation to make payments of general purpose financial assistance in a prescribed manner, ensuring compliance with the IGA. The application of this determination is nationwide, covering all states in Australia as part of the broader framework established by the IGA, which was subject to extensive consultation with the states and signed by all jurisdictions in December 2008.

Key Provisions

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 53 outlines the key provisions for the provision of general purpose financial assistance to the States. Section 9(1) of the Act mandates that the Minister credits amounts to the COAG Reform Fund for this purpose. This fund, established under the COAG Reform Fund Act 2008, is a Special Account as defined by the Financial Management and Accountability Act 1997. This arrangement ensures that the assistance provided is transparent and accountable. The obligations imposed by the Act require the Minister to make payments of general purpose financial assistance in a prescribed manner, as stipulated by the Intergovernmental Agreement on Federal Financial Relations (IGA). This obligation is further reinforced by the requirement that the Minister's determinations in respect of these payments are legislative instruments, which will be registered on the Federal Register of Legislative Instruments. Importantly, these determinations are not subject to disallowance, as clarified by the determination itself, ensuring that the Minister can meet their obligations under the IGA without undue procedural hindrance. There are no specific offences or penalties outlined in this determination for breaches of the Act’s provisions. However, the broader framework under which this determination operates includes potential civil and criminal consequences for non-compliance with federal financial relations agreements or related legislation. The IGA itself, while not explicitly detailing penalties, implies a strong expectation of compliance, and breaches could lead to broader implications under related legislative provisions, which might include financial penalties or legal action to enforce compliance. The exact nature and extent of penalties would depend on the specific circumstances and the applicable laws at the time of any alleged breach.