Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025

Administered by Department of the Treasury

Legislation au F2025L00080 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Competition, Charities and Treasury

Federal Financial Relations Act 2009

Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025

Subsection 16(1) of the Federal Financial Relations Act 2009 (the FFR Act) provides that the Minister may determine amounts to be paid to the States, the Australian Capital Territory or the Northern Territory for the purpose of the Commonwealth making grants of financial assistance to:

•                 support the delivery of agreed outputs or projects;

•                 facilitate State and Territory reforms; and

•                 reward States and Territories for nationally significant reforms.

The purpose of the Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025 (the Determination) is to determine amounts of financial assistance to be paid to the States, the Australian Capital Territory or the Northern Territory for matters detailed in the dot points above.

The Intergovernmental Agreement on Federal Financial Relations (the IGA) provides a foundation for collaboration on policy development and service delivery between the Commonwealth and the States, the Australian Capital Territory and the Northern Territory. As part of the IGA, the Commonwealth has committed to the provision of on-going financial support for the States’ and Territories’ service delivery efforts. This includes the provision of national partnership payments which support the matters detailed in the dot points above.

The Determination gives effect to the Commonwealth’s ongoing obligations under the IGA to make grants of financial assistance.

By way of background, legislative authority is required for the Commonwealth to spend money from the Consolidated Revenue Fund. The Public Governance, Performance and Accountability Act 2013 provides that, if another Act establishes a special account and identifies the purposes of the account, the Consolidated Revenue Fund is appropriated up to the balance of the account at any point in time for expenditure for the purposes of the account.

In this context, the Federation Reform Fund Act 2008 establishes the Federation Reform Fund, a special account, which has the purpose of making grants of financial assistance to States and Territories. The FFR Act requires the Minister, following the making of a determination, to credit funds he or she has determined to the Federation Reform Fund for the purpose of providing financial assistance to the States, the Australian Capital Territory or the Northern Territory.

Under subsection 16(3) of the FFR Act, the total amount credited to the Federation Reform Fund for the purpose of making a grant of national partnership payments in a financial year must not exceed the debit limit determined for that year. The debit limit is set by the annual appropriation Acts. The Determination will not result in total determined amounts for the relevant financial year exceeding the debit limit.

The IGA was subject to extensive consultation with the States and Territories before it was agreed by the former Council of Australian Governments on 29 November 2008. The IGA is publicly available on the Federal Financial Relations website. The Determination is minor and machinery in nature and was not subject to further consultation.

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 subsection 16(5) of the FFR Act and subsection 44(1) of the Legislation Act 2001, the Determination is not subject to disallowance. The Determination is also not subject to sunsetting under subsection 54(1) of the Legislation Act 2003. The exemptions from disallowance and sunsetting are provided 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 an instalment of financial assistance to be provided to a State or Territory based on that State or Territory having satisfied the necessary agreed criteria. The instrument can only authorise financial assistance being paid to a State or Territory where it has been supported by a valid appropriation enacted by the Parliament, further the annual appropriation Bills also include annual debit limits for amounts that may be spent under the delegated general purpose financial assistance or national partnership payments under the FFR Act. The debit limits provide an effective mechanism to limit the expenditure of public money under the Determination and ensures that there is alternative Parliamentary scrutiny of such arrangements.

A Policy Impact Analysis is not required as the instrument is machinery in nature (OIA24-07548).

The Determination commenced immediately after it was 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 (National Partnership Payments—2024-25 Payment No. 8) Determination 2025

Section 1 – Name of the Determination

This section provides that the name of the Determination is the Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025 (the Determination).

Section 2 – Commencement

The Determination commenced immediately after it was registered on the Federal Register of Legislation.

Section 3 – Authority

The Determination is made under the Federal Financial Relations Act 2009 (the Act).

Section 4 – Definitions

This section provides definitions are that used in the Determination.

Section 5 – Determination of national partnership payments

This section specifies amounts to be paid to each of the States, the Australian Capital Territory and the Northern Territory as grants of financial assistance to:

•                 support the delivery of agreed outputs or projects;

•                 facilitate State and Territory reforms; and

•                 reward States and Territories for nationally significant reforms.

Financial assistance provided is based on that State or Territory having satisfied the necessary agreed criteria, and having advised the Commonwealth prior to when the relevant monthly payment falls due.

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 (National Partnership Payments—2024-25 Payment No. 8) Determination 2025

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 instrument determines amounts of national partnership payments to be paid to the States, the Australian Capital Territory or the Northern Territory.

Human rights implications

This Legislative Instrument does not directly engage any of the applicable rights or freedoms.

National partnership agreements set out mutually agreed objectives, outcomes, outputs and performance requirements for the specific services, project or reform to be delivered under that agreement. Each agreement is negotiated between the Commonwealth and the relevant States and Territories. Through the negotiation process, the States and Territories have input into the setting of benchmarks to be used to measure progress in delivering services, projects and reforms. As such, the benchmarks in national partnership agreements are agreed by all parties as achievable and demonstrating the realisation of the mutually-agreed policy objectives.

The States and Territories meet the overwhelming majority of performance requirements in national partnership agreements. The associated funding is then paid in accordance with determinations made under the FFR Act, such as the Determination, consistent with the terms and conditions of the relevant agreement. The setting of performance requirements promotes the progressive realisation of certain human rights by creating an incentive for the efficient delivery of services, projects and reforms in sectors such as health, education, housing and community services. For example, determinations may include payments that support:

•                 the rights of people with disabilities to full and effective participation and inclusion in society (Article 3, Convention on the Rights of Persons with Disabilities);

•                 the right to education (Article 13, International Covenant on Economic, Social and Cultural Rights; Article 28, Convention of the Rights of the Child; Article 24, Convention on the Rights of Persons with Disabilities);

•                 the right to be physically and mentally healthy (Article 12, International Covenant on Civil and Political Rights);

•                 the right to adequate housing (Article 11, International Covenant on Civil and Political Rights);

•                 realisation of the right to work through vocational training (Article 6, International Covenant on Economic, Social and Cultural Rights; Article 27, Convention on the Rights of Persons with Disabilities); and

•                 the right to an adequate standard of living (Article 11, International Covenant on Civil and Political Rights).

It is difficult to assess the human rights compatibility of the making of payments of financial assistance to each State or Territory as the States and Territories are responsible for the delivery of those services.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025, issued under the authority of the Assistant Minister for Competition, Charities and Treasury, was enacted to determine the amounts of financial assistance to be paid to the States, the Australian Capital Territory and the Northern Territory for agreed outputs or projects, facilitating reforms, and rewarding nationally significant reforms. This Determination adheres to the Federal Financial Relations Act 2009, which outlines the framework for the Commonwealth’s provision of grants to support state and territory initiatives. The Commonwealth's commitment to these payments is rooted in the Intergovernmental Agreement on Federal Financial Relations, which fosters collaboration between the Commonwealth and the States, the Australian Capital Territory, and the Northern Territory. This Determination ensures the Commonwealth's ongoing obligations under the IGA are met, with the funding being appropriated from the Federation Reform Fund established under the Federation Reform Fund Act 2008. The Determination is not subject to disallowance or sunsetting, as it is considered minor and machinery in nature, reflecting its role in operationalising intergovernmental agreements rather than introducing new policy. The instrument's compatibility with human rights has been affirmed, as the payments are designed to support the progressive realisation of various human rights through agreed benchmarks and performance requirements.

Scope and Application

The Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025 applies to the States, the Australian Capital Territory, and the Northern Territory of Australia. It pertains to the determination of financial assistance amounts that the Commonwealth government will provide to these entities to support the delivery of agreed outputs or projects, facilitate state and territory reforms, and reward states and territories for nationally significant reforms. The scope of the Act encompasses all jurisdictions within Australia and is governed by the Federal Financial Relations Act 2009, which mandates the Minister to determine the amounts of these payments. The Act specifies the criteria that must be satisfied by the states and territories to qualify for these grants, including the need for prior advice to the Commonwealth before the monthly payment falls due. The Determination is exempt from disallowance and sunsetting provisions under the Legislation Act 2003, as it pertains to an intergovernmental scheme and reflects agreements between the Commonwealth and the states, territories, and the Australian Capital Territory. The instrument is subject to the debit limits set by the annual appropriation Acts, ensuring that the expenditure does not exceed the authorised limits.

Key Provisions

The Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025 (section 5) specifies the amounts of financial assistance to be paid to the States, the Australian Capital Territory, and the Northern Territory. This financial assistance is intended to support the delivery of agreed outputs or projects, facilitate state and territory reforms, and reward states and territories for nationally significant reforms (section 1). The payments are contingent on the states or territories having met the agreed criteria and having informed the Commonwealth before the due date of the monthly payment (section 5). The determination is made under the authority of the Federal Financial Relations Act 2009 (section 3), and it is not subject to disallowance or sunsetting (sections 16(5) and 54(1) of the Federal Financial Relations Act 2009 and section 44(1) of the Legislation Act 2003). The Determination imposes several obligations on the parties involved. Firstly, it requires states and territories to meet the agreed criteria for receiving the national partnership payments (section 5). This involves ensuring that they have fulfilled the necessary conditions and benchmarks set out in the relevant national partnership agreements. Secondly, it mandates that states and territories provide timely notification to the Commonwealth before the due date of each monthly payment (section 5). This requirement ensures that the Commonwealth can accurately allocate the financial assistance based on the states' and territories' compliance with the agreed criteria. Failure to comply with the obligations set forth in the Determination can result in civil or criminal consequences. However, the Determination itself does not explicitly outline specific penalties for non-compliance. The primary mechanism for ensuring compliance lies in the annual appropriation Bills, which include annual debit limits for amounts that may be spent under the delegated general purpose financial assistance or national partnership payments under the Federal Financial Relations Act 2009. These debit limits provide a means to limit the expenditure of public money under the Determination and ensure that there is alternative parliamentary scrutiny of such arrangements. Additionally, any breaches of the terms and conditions of the national partnership agreements could potentially lead to disputes or legal actions between the Commonwealth and the states or territories. In summary, the Federal Financial Relations (National Partnership Payments—2024-25 Payment No. 8) Determination 2025 outlines the amounts of financial assistance to be provided to the States, the Australian Capital Territory, and the Northern Territory to support agreed outputs, reforms, and nationally significant reforms. It imposes obligations on the states and territories to meet the agreed criteria and provide timely notification to the Commonwealth. While the Determination does not specify particular penalties for non-compliance, the annual appropriation Bills and the terms of the national partnership agreements provide mechanisms to ensure adherence to the requirements set out in the Determination.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.