Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 55 (October 2013) was enacted in 2013 by the Acting Treasurer under section 9 of the Federal Financial Relations Act 2009. This determination was introduced to address the need for providing financial assistance to the states for their service delivery efforts. This was to be achieved through general purpose financial assistance which states could utilise for any purpose. The determination sets out the terms and conditions for the provision of this assistance, including the crediting of funds to the COAG Reform Fund, a special account established under the COAG Reform Fund Act 2008, and the setting of these terms and conditions in a written agreement between the Commonwealth and the state as required by the COAG Reform Fund Act 2008. The policy objective of this determination is to support the states in their service delivery efforts through the provision of financial assistance. The determination specifies the amounts to be credited to the COAG Reform Fund before being paid to the states on 21 October 2013. It also outlines the drawing rights limits for the 2013-14 financial year, ensuring that the total amount credited to the COAG Reform Fund for the purpose of making a grant of general purpose financial assistance does not exceed $1,500,000,000. The terms and conditions for all payments of general purpose financial assistance are provided in 'Schedule D — Payment Arrangements' to the Intergovernmental Agreement, which is an overarching framework for financial transfers between the Commonwealth and the States.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 55 (October 2013) applies to the Commonwealth government and the states, including the Australian Capital Territory and the Northern Territory, as it pertains to the provision of general purpose financial assistance through the COAG Reform Fund. This Determination is made under section 9 of the Federal Financial Relations Act 2009, with the purpose of supporting the states' service delivery efforts. The funds are to be credited to the COAG Reform Fund before being paid to the states, with specific terms and conditions set out in Schedule D — Payment Arrangements to the Intergovernmental Agreement. The Determination includes a summary of the relevant provisions for general purpose financial assistance in Schedule 1, which details the purpose and relevant agreements for each payment title. The total amount of general purpose financial assistance to be credited to the COAG Reform Fund for the 2013-14 financial year must not exceed $1,500,000,000, as stipulated in the Act. The Determination does not apply to the disallowance provisions of the Legislative Instruments Act 2003.

Key Provisions

This determination, the Federal Financial Relations (General Purpose Financial Assistance) Determination No. 55 (October 2013), was made under section 9 of the Federal Financial Relations Act 2009 and provides financial support for the states' service delivery efforts through general purpose financial assistance (sections 5 and 10). The Commonwealth credits the COAG Reform Fund with a specific amount determined under subsection 9(1) of the Act, which is to be used for general purpose financial assistance to the states (section 6). This determination specifies the amounts to be credited to the COAG Reform Fund before payment to the states on 21 October 2013, as detailed in Table 1 (section 10). The obligation under this determination is to credit the specified amount to the COAG Reform Fund, as outlined in Table 1, for the purpose of providing general purpose financial assistance to the states (section 6). The determination also requires that the total amount credited to the COAG Reform Fund for general purpose financial assistance in the 2013-14 financial year does not exceed $1,500,000,000 (section 13). The terms and conditions for all payments of general purpose financial assistance are provided in 'Schedule D — Payment Arrangements' to the Intergovernmental Agreement (section 7). The total amount determined for payment of general purpose financial assistance to date in the 2013-14 financial year does not exceed the general drawing rights limit (section 15). The Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for breach in this determination. However, the requirement to adhere to the specified drawing rights limit and credit the COAG Reform Fund with the determined amounts is critical. Non-compliance with these requirements could result in legal scrutiny or administrative consequences. It is also important to note that the determination is exempt from section 42 (disallowance) of the Legislative Instruments Act 2003 (section 4).