Federal Financial Relations (General purpose financial assistance) Determination No. 98 (May 2017)

Overview

The Federal Financial Relations (General purpose financial assistance) Determination No. 98, made in May 2017, was enacted under section 9 of the Federal Financial Relations Act 2009 (FFR Act). This legislation was introduced to address the need for ongoing financial support for the States and Territories' service delivery efforts, as outlined in the Intergovernmental Agreement on Federal Financial Relations (IGA). The IGA provides a framework for collaboration on policy development and service delivery between the Commonwealth and the States. This determination, made by the Minister under the authority of the FFR Act, facilitates the provision of general purpose financial assistance to the States, allowing them to use the funds for any purpose. The objective is to meet the Commonwealth's obligation to make these payments in a prescribed manner, as agreed upon by the Council of Australian Governments on 29 November 2008. The determination came into effect on the day it was made, ensuring the continuity of financial support for the States in accordance with the IGA.

Scope and Application

The Federal Financial Relations (General Purpose Financial Assistance) Determination No. 98 applies to the provision of general purpose financial assistance by the Commonwealth to the States, in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA). The determination is made under section 9 of the Federal Financial Relations Act 2009 and serves to implement the payment provisions of the IGA, excluding Goods and Services Tax (GST) payments. It applies to the Commonwealth, the States, and the Territories, and involves the crediting of funds to the COAG Reform Fund for the distribution of grants to the States, as established by the COAG Reform Fund Act 2008. The Commonwealth is obligated under the IGA to make these payments in a prescribed manner, and the determination ensures that this obligation is fulfilled. While the determination itself is not subject to disallowance, it is registered on the Federal Register of Legislation. The geographic and jurisdictional reach of this legislation is national, as it involves the Commonwealth and all States and Territories within Australia.

Key Provisions

The main operative sections of the Federal Financial Relations (General purpose financial assistance) Determination No. 98 (2017) focus on the implementation of general purpose financial assistance as outlined under the Federal Financial Relations Act 2009 (section 9). This determination specifies the process for the Minister to credit amounts to the COAG Reform Fund for the purpose of providing financial assistance to the States (section 1). These funds are subsequently debited from the COAG Reform Fund to make grants to the States (section 2). The COAG Reform Fund Act 2008 details the establishment and purpose of the COAG Reform Fund, which is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013 (section 3). The determination is registered on the Federal Register of Legislation and, while it is a legislative instrument, it is exempt from the disallowance provisions of the Legislation Act 2003 (section 4). The obligations and requirements imposed by this determination on the parties involved are primarily focused on ensuring compliance with the Intergovernmental Agreement on Federal Financial Relations (IGA). The Commonwealth, through the Minister, is obligated to credit amounts to the COAG Reform Fund and subsequently make grants to the States as stipulated by the IGA (section 1). The States, in turn, are recipients of these grants, which are intended to support their service delivery efforts. The determination also ensures that the Commonwealth's obligation to make these payments is not subject to disallowance, thereby upholding the commitment under the IGA (section 4). Additionally, the determination mandates that any payments made are to be in accordance with the IGA, promoting transparency and accountability in the financial assistance provided to the States. Offences, penalties, or consequences for breach of this determination are not explicitly detailed within the text provided. However, the exemption from the disallowance provisions of the Legislation Act 2003 (section 4) ensures that the Commonwealth's obligation to provide general purpose financial assistance is not subject to disallowance, thereby maintaining the integrity of the financial support framework. While specific penalties are not outlined in the text, any breach of the IGA or failure to comply with the determination could potentially result in legal or political repercussions, given the importance of the intergovernmental financial relationship. The overarching objective is to ensure that the financial assistance provided to the States is used in accordance with the terms of the IGA, thereby supporting their service delivery efforts effectively.