Federal Financial Relations (General purpose financial assistance) Determination No. 58 (January 2014)

Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 58, enacted in January 2014, is a legislative instrument designed to provide clarity and structure to the ongoing financial support provided by the Commonwealth to the states for their service delivery efforts. This determination complements the Federal Financial Relations Act 2009, which implements the payment provisions of the Intergovernmental Agreement on Federal Financial Relations (IGA) agreed upon in December 2008. The IGA, which was subject to extensive consultation with the states and signed by all jurisdictions, establishes a framework for collaboration and support in areas of national importance, including the provision of general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The determination outlines the process for the Minister to credit amounts to the COAG Reform Fund for the purpose of providing general purpose financial assistance, ensuring transparency and compliance with the obligations set out in the IGA. Importantly, these determinations are legislative instruments that are registered on the Federal Register of Legislative Instruments, although they are exempt from the disallowance provisions to allow the Minister to meet the obligations of the IGA.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 58, which was made in January 2014, is a legislative instrument that implements the intergovernmental agreement on federal financial relations. This Act applies to the Minister for Finance who is tasked with making determinations regarding the provision of general purpose financial assistance to the States, which is to be credited to the COAG Reform Fund. This fund is a Special Account as specified in the COAG Reform Fund Act 2008, and its purpose is to provide general revenue assistance other than GST revenue grants to the States. It is important to note that the Minister's determinations under this Act are legislative instruments and are registered on the Federal Register of Legislative Instruments; however, they are exempt from the disallowance provisions. This exemption is necessary to ensure that the Minister can fulfil their obligation under the Intergovernmental Agreement on Federal Financial Relations to make payments of general purpose financial assistance in a prescribed manner. The Act commenced on the day it was made and applies to the Commonwealth, States, and Territories of Australia.

Key Provisions

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 58 (January 2014) primarily deals with the provision of general purpose financial assistance to the states as per the Intergovernmental Agreement on Federal Financial Relations (IGA) (section 1). This assistance is to be used by the states for any purpose and is meant to complement other forms of financial support such as GST payments, National Specific Purpose Payments, and National Partnership payments (section 2). The Act outlines that the Minister has the authority to credit amounts to the COAG Reform Fund for this purpose, and these amounts are to be treated as general revenue assistance, excluding GST revenue grants (section 3). Under the Act, the obligations imposed on the parties include the requirement for the Minister to make payments of general purpose financial assistance in a manner prescribed by the IGA (section 4). This obligation is facilitated by exempting the Minister's determinations from disallowance, ensuring that these payments can be made without the need for parliamentary approval (section 5). The Act also specifies that these determinations are to be treated as legislative instruments and will be registered on the Federal Register of Legislative Instruments (section 6). This enhances transparency by making the determinations publicly available and subject to scrutiny (section 7). The Act does not explicitly detail specific offences or penalties for breaches of its provisions. However, it is implied that failure to comply with the requirements of the IGA or the provisions of the Act could lead to legal consequences, such as the withholding of financial assistance or other punitive measures outlined in the IGA. The IGA itself is subject to ongoing consultation with the states, and any significant breach or failure to adhere to the agreed terms could potentially result in legal action or disputes between the Commonwealth and the states (section 8). The commencement of the determination on the date it was made underscores the immediate effect of the provisions on the financial assistance framework (section 9).