Federal Financial Relations (General purpose financial assistance) Determination No. 74 (May 2015)

Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 74, made in May 2015, was enacted under the Federal Financial Relations Act 2009 to provide clarity on the administration and management of general purpose financial assistance. This Act was introduced to address the need for ongoing financial support for states' service delivery efforts, as agreed upon in the Intergovernmental Agreement on Federal Financial Relations. The Federal Financial Relations Act 2009 was passed by the Australian Parliament to implement the new federal financial framework, which commenced on 1 January 2009, and includes provisions for general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The determinations made by the Minister concerning general purpose financial assistance are legislative instruments and will be registered on the Federal Register of Legislative Instruments, although they will not be disallowable. This was done to improve transparency and ensure that the Minister can meet the obligation to make payments in a prescribed manner under the IGA.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 74, made under the Federal Financial Relations Act 2009, applies to the provision of general purpose financial assistance by the Commonwealth to the States for use at their discretion. This assistance is integral to the implementation of the Intergovernmental Agreement on Federal Financial Relations, which aims to support collaboration and service delivery across national sectors. The Act pertains to the Minister who is tasked with crediting amounts to the COAG Reform Fund, established under the COAG Reform Fund Act 2008, to facilitate these financial transfers. The Minister's determinations concerning these financial assistance payments are legislative instruments and are subject to registration on the Federal Register of Legislative Instruments, although they are exempt from disallowance provisions to ensure the continuous flow of support as mandated by the Intergovernmental Agreement. The Act's jurisdiction spans the Commonwealth and the States, binding all parties to the Intergovernmental Agreement signed in December 2008. The determination itself commences on the date of its creation, providing an immediate framework for the financial assistance outlined within the Federal Financial Relations Act 2009.

Key Provisions

The Federal Financial Relations (General purpose financial assistance) Determination No. 74 (May 2015) under the Federal Financial Relations Act 2009 is a legislative instrument that provides specific details on how general purpose financial assistance is to be distributed to the states. Under section 9(1) of the Act, the Minister is required to credit amounts to the COAG Reform Fund for the purpose of providing general revenue assistance to the states. This fund, established by the COAG Reform Fund Act 2008, is a Special Account as defined by the Financial Management and Accountability Act 1997. The key requirement here is that the Minister must ensure that these funds are credited to the COAG Reform Fund, which will then be used to provide financial assistance to the states. The obligations imposed on the parties by this Act include the Minister's duty to credit the COAG Reform Fund with the necessary amounts, as outlined under the Intergovernmental Agreement on Federal Financial Relations. This agreement mandates ongoing financial support for the states' service delivery efforts, with the Minister having an explicit obligation to make these payments in a prescribed manner. This obligation is crucial to maintaining the framework of federal financial relations as agreed upon in the IGA. Additionally, the requirement for the Minister's determinations regarding general purpose financial assistance to be registered on the Federal Register of Legislative Instruments ensures transparency and accountability in the financial distribution process. There are no specific offences, penalties, or civil/criminal consequences outlined for breaches of the Federal Financial Relations Act 2009 or its determinations in this context. However, the importance of adhering to the prescribed manner of making payments cannot be overstated. Failure to comply with the obligations under the IGA might result in broader political or administrative consequences, given the collaborative nature of federal financial relations. The Act ensures that these determinations are not subject to disallowance, allowing the Minister to meet their obligations under the IGA without legislative interference.