EXPLANATORY STATEMENT
Issued by authority of the Assistant Minister for Competition, Charities and Treasury
Federal Financial Relations Act 2009
Federal Financial Relations (Housing, Homelessness and Housing Affordability Payments for 2021-22) Determination 2023
Subsection 15C(2) of the Federal Financial Relations Act 2009 (the Act) provides that the Minister may determine that an amount specified in the determination is to be paid to a State, the Australian Capital Territory or the Northern Territory (States and Territories) for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with an agreement between the Commonwealth and one or more States and Territories, relating to housing, homelessness or housing affordability.
The purpose of the Federal Financial Relations (Housing, Homelessness and Housing Affordability Payments for 2021-22) Determination 2023 (the Determination) is to specify the amounts to be paid to each State and Territory for the 2021-22 financial year.
Under the Intergovernmental Agreement on Federal Financial Relations (the IGA) and the Act, the Commonwealth provides payments to support the States and Territories to deliver programs, services and reforms with respect to a number of subject matters, including (but not limited to) housing, homelessness and housing affordability matters. The details of the funding arrangements and the conditions the States and Territories must meet to receive Commonwealth funding are set out in the National Housing and Homelessness Agreement (the NHHA) and in related bilateral agreements between the Commonwealth and each of the States and Territories.
The amounts specified in the Determination to be paid to each State and Territory have been calculated in accordance with the NHHA.
Advance payments relating to housing, homelessness or housing affordability are made throughout the financial year based on estimates of each jurisdiction’s anticipated entitlement for that year. Any adjustment between the advances paid to a jurisdiction and the jurisdiction’s determined entitlement is made in the first practicable payment after the Determination is made.
The IGA and the NHHA were subject to extensive consultation with the States and Territories and were signed by all jurisdictions. Both agreements are publicly available on the website of the Council on Federal Financial Relations. Ongoing consultation with the States and Territories on federal financial relations occurs regularly.
Details of the Determination are set out in Attachment A.
The Determination is a legislative instrument for the purposes of the Legislation Act 2003. In accordance with subsections 44(1) and 54(1) of the Legislation Act 2003, the Determination is not subject to disallowance or sunsetting under the Act and the Legislation Act 2003 on the grounds that the instrument is part of an intergovernmental scheme and gives effect to agreements between the Commonwealth and each of the States, the Australian Capital Territory and the Northern Territory. The instrument’s operation is effectively mechanical in that it simply details financial assistance to be provided to a State or Territory based on that State or Territory having satisfied the necessary agreed criteria.
A Policy Impact Analysis is not required as the Determination is machinery in nature.
The Determination commences the day after it is registered on the Federal Register of Legislation.
A statement of Compatibility with Human Rights is at Attachment B.
ATTACHMENT A
Details of the Federal Financial Relations (Housing, Homelessness and Housing Affordability Payments for 2021-22) Determination 2023
This Attachment sets out further details of the Determination.
Section 1 – Name
This section specifies the name of the Determination is the Federal Financial Relations (Housing, Homelessness and Housing Affordability Payments for 2021-22) Determination 2023.
Section 2 – Commencement
This section prescribes that the Determination commences the day after it is registered on the Federal Register of Legislation.
Section 3 – Authority
This section provides that the Determination is made under the Federal Financial Relations Act 2009.
Section 4 – Definitions
This section provides definitions for the purposes of the Determination.
Section 5 – Housing, homelessness and housing affordability payments for 2021-22
This section sets out the amounts required to be paid by the Commonwealth in respect of the 2021-22 financial year to each State and Territory in accordance with the National Housing and Homelessness Agreement and in related bilateral agreements between the Commonwealth and each of the States and Territories.
ATTACHMENT B
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Federal Financial Relations (Housing, Homelessness and Housing Affordability Payments for 2021-22) Determination 2023
This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Legislative Instrument
The purpose of the Federal Financial Relations (Housing, Homelessness and Housing Affordability Payments for 2021-22) Determination 2023 is to specify the amounts to be paid to each State and Territory for the 2021-22 financial year for the purpose expenditure in accordance with an agreement between the Commonwealth and one or more States and Territories, relating to housing, homelessness or housing affordability.
Human rights implications
This Legislative Instrument engages the right to an adequate standard of living, including housing, as referred to in Article 11.1 of the International Covenant on Economic, Social and Cultural Rights (done at New York on 16 December 1966 ([1976] ATS 5)).
This Instrument supports the right to adequate housing by providing funding to support the States and Territories to deliver programs, services and reforms with respect housing, homelessness and housing affordability matters.
Total Commonwealth funding in support of the States’ and Territories’ delivery of programs, services and reforms with respect to housing, homelessness and housing affordability matters has been increased for 2021-22 in line with the Intergovernmental Agreement on Federal Financial Relations, the National Housing and Homelessness Agreement and in related bilateral agreements between the Commonwealth and each of the States and Territories.
Conclusion
This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.