Overview

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 9, issued in October 2016 under the Federal Financial Relations Act 2009, was enacted by the Treasurer to implement the Intergovernmental Agreement on Federal Financial Relations (IGA) of 2008. This legislative instrument facilitates the ongoing provision of general purpose financial assistance to the states, which is essential for supporting their service delivery efforts. The IGA, developed through extensive consultation with the states and approved by the Council of Australian Governments, outlines the framework for these financial relations and commits the Commonwealth to certain payment obligations. The determination ensures that the Commonwealth can meet these obligations by exempting it from the disallowance provisions of the Legislation Act 2003, thereby allowing for the timely and efficient distribution of funds. The amounts credited to the COAG Reform Fund and subsequently disbursed as grants to the states can be used for any purpose, thus supporting a wide range of policy areas and potentially promoting multiple human rights.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 9, made under section 9 of the Federal Financial Relations Act 2009, applies to the Commonwealth's provision of general purpose financial assistance to the states and territories. This assistance, excluding Goods and Services Tax payments, is intended to support the states' service delivery efforts as part of the broader framework established by the Intergovernmental Agreement on Federal Financial Relations. The Treasurer, acting under the authority granted by the FFR Act, credits funds to the COAG Reform Fund, which then distributes these funds to the states as grants. This legislative instrument is not subject to disallowance, ensuring the Commonwealth's obligation under the IGA is fulfilled. The determination applies across the Commonwealth and does not contain specific exclusions or thresholds; however, the implementation of payments is subject to the terms of the IGA and related consultation processes. The determination, registered on the Federal Register of Legislation, came into effect on the day it was made.

Key Provisions

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 9 (F2016L01725) outlines the implementation of the Intergovernmental Agreement on Federal Financial Relations (IGA) with respect to general purpose financial assistance, other than GST payments, provided to the States. Under section 9 of the Federal Financial Relations Act 2009 (FFR Act), the Treasurer credits amounts to the COAG Reform Fund, which are subsequently debited to fund these grants to the States (section 4(1)). This process ensures that the Commonwealth’s commitment under the IGA to provide ongoing financial support for the States' service delivery efforts is met. These funds are intended to be flexible, allowing the States to allocate the assistance as they see fit across various policy areas. The obligations imposed by this Determination are primarily on the Commonwealth, specifically the Treasurer, who must ensure that the payments are made in accordance with the prescribed manner as outlined in the IGA. The Commonwealth has a binding commitment to provide these financial assistance payments, which are intended to support the States in their service delivery functions. This includes making the necessary credits to the COAG Reform Fund and subsequent debits to fund the grants (section 4(2)). Additionally, the Treasurer is required to consult extensively with the States, as stipulated in the IGA, and to ensure that these payments are made in a timely and transparent manner. Failure to comply with the provisions of this Determination could result in legal consequences for the Commonwealth. While the Determination itself is not subject to disallowance under the Legislation Act 2003, the obligation to make payments of general purpose financial assistance is mandated by the IGA. Non-compliance with the IGA could potentially lead to legal disputes or other forms of accountability, though specific civil or criminal penalties are not detailed in the Determination. The Determination's registration on the Federal Register of Legislation and its status as a legislative instrument underscore the importance of adhering to these obligations.