Federal Financial Relations (National Partnership Payments) Determination 2009 No. 11 (November)

Administered by Department of the Treasury

Legislation au F2009L04498 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Federal Financial Relations ACt 2009

Federal Financial Relations (National Partnership payments) Determination 2009 No. 11 (November)

 

The Intergovernmental Agreement on Federal Financial Relations provides a robust foundation for collaboration on policy development and service delivery, and facilitates the implementation of economic and social reforms in areas of national importance.

In agreeing the new framework for federal financial relations, the Commonwealth committed to the provision of ongoing financial support for the States’ service delivery efforts through:

                 general purpose financial assistance, including the ongoing provision of GST payments, to be used by the States for any purpose;

                 National Specific Purpose Payments (National SPPs) to be spent in the key service delivery sectors; and

                 National Partnership payments to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.

The new federal financial framework commenced on 1 January 2009.  The payment provisions of the Intergovernmental Agreement are implemented through the Federal Financial Relations Act 2009

National Partnership payments

The Federal Financial Relations Act 2009 provides for the Minister to credit amounts to the COAG Reform Fund for the purpose of providing financial assistance to the States in the form of National Partnership payments.

                 The COAG Reform Fund Act 2008 established the COAG Reform Fund and specifies that it is a Special Account for the purposes of the Financial Management and Accountability Act 1997.

To improve transparency, the Minister’s determinations in respect of National Partnership payments are legislative instruments and will be registered on the Federal Register of Legislative Instruments, but will not be disallowable.

                 This clarifies that determinations made by the Minister under subsection 9(1) would not otherwise be legislative instruments within the meaning of section 5 of the Legislative Instruments Act 2003. 

                 The Minister has an obligation under the Intergovernmental Agreement to make National Partnership payments in a prescribed manner.  Exemption from the disallowance provisions will allow the Minister to meet this obligation. 

Commencement

The determination commences on the day it was made. 

Overview

The Federal Financial Relations (National Partnership Payments) Determination 2009 No. 11 was enacted in 2009 to address the need for a robust and transparent framework for federal financial relations, facilitating collaboration on policy development and service delivery between the Commonwealth and the states. This legislation was introduced by the Commonwealth Parliament to provide ongoing financial support for the states’ service delivery efforts through National Partnership payments, aligning with the commitments made under the Intergovernmental Agreement on Federal Financial Relations. The policy objective is to enhance the delivery of specified outputs or projects and to support reforms that are of national significance, ensuring that the financial assistance provided is transparent and accountable. The determination ensures that the Minister’s decisions regarding National Partnership payments are legislative instruments, improving transparency and registration on the Federal Register of Legislative Instruments, while clarifying that these determinations are not subject to disallowance.

Scope and Application

The Federal Financial Relations (National Partnership Payments) Determination 2009 applies to the Minister for Finance, who is responsible for crediting amounts to the COAG Reform Fund for National Partnership payments as specified under the Federal Financial Relations Act 2009. These payments are intended to provide financial assistance to the States to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The determination is applicable across the Commonwealth of Australia, aligning with the broader federal financial framework established by the Intergovernmental Agreement on Federal Financial Relations. The COAG Reform Fund, established under the COAG Reform Fund Act 2008, serves as the Special Account through which these payments are facilitated. It is important to note that the Minister's determinations regarding National Partnership payments, while legislative instruments, are exempt from the disallowance provisions, ensuring the Minister can fulfil the obligations under the Intergovernmental Agreement. This determination came into effect on the day it was made, thereby initiating the process of financial support as outlined in the new federal financial framework that commenced on 1 January 2009.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination 2009 (No. 11) implements the provision of National Partnership payments under the Federal Financial Relations Act 2009. Section 9(1) of the Act mandates that the Minister credit amounts to the COAG Reform Fund for the purpose of providing financial assistance to the states in the form of National Partnership payments. This provision is essential for facilitating the agreed reforms and supporting specified outputs or projects. The determination ensures that these payments are made in a prescribed manner as outlined in the Intergovernmental Agreement on Federal Financial Relations. It is important to note that these determinations are legislative instruments and are registered on the Federal Register of Legislative Instruments, though they are exempt from the disallowance provisions under the Legislative Instruments Act 2003. This exemption ensures that the Minister can effectively meet the obligations under the Intergovernmental Agreement without the need for disallowance. The obligations imposed by the Determination include the requirement for the Minister to credit amounts to the COAG Reform Fund in accordance with the Intergovernmental Agreement. This obligation is crucial for the effective implementation of the federal financial framework and the delivery of agreed reforms. Additionally, the Minister's determinations regarding National Partnership payments must be consistent with the provisions of the Federal Financial Relations Act 2009 and the Intergovernmental Agreement on Federal Financial Relations. The determinations must be made in a manner that ensures transparency and accountability, as they are legislative instruments registered on the Federal Register of Legislative Instruments. The Minister must ensure that these payments are used for the specified purposes and are in line with the agreed-upon objectives and reforms. The Act does not explicitly outline specific offences or penalties for breaches of the determinations regarding National Partnership payments. However, breaches of the obligations under the Federal Financial Relations Act 2009 or the Intergovernmental Agreement could potentially lead to legal consequences. The nature and severity of these consequences would depend on the specific circumstances of the breach and the applicable laws. In general, breaches of statutory obligations can result in civil or criminal penalties, including fines and other sanctions. The maximum penalties for breaches would be determined by the relevant laws and regulations governing the specific breach. It is important for the Minister and other parties involved to adhere strictly to the obligations and requirements set out in the determination to avoid any potential legal repercussions.

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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.