Federal Financial Relations (National Partnership Payments) Determination 2009 No. 12 (November)

Overview

The Federal Financial Relations (National Partnership payments) Determination 2009 was enacted to implement the provisions of the Intergovernmental Agreement on Federal Financial Relations, which provides a framework for collaboration on policy development and service delivery between the Commonwealth and the States. This legislation was introduced to address the need for a structured financial support mechanism for the States' service delivery efforts, in line with the new federal financial relations framework that commenced on 1 January 2009. The policy objective outlined in the Act is to facilitate economic and social reforms in areas of national importance through the provision of National Partnership payments. These payments are intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The Act is an instrument of the Commonwealth Parliament and provides for the Minister to credit amounts to the COAG Reform Fund for the purpose of providing National Partnership payments to the States. This determination ensures that payments are made in a prescribed manner, enhancing transparency and accountability.

Scope and Application

The Federal Financial Relations (National Partnership Payments) Determination 2009 applies to the Minister who is responsible for the administration of the Federal Financial Relations Act 2009, and specifically relates to the provision of financial assistance to the States in the form of National Partnership payments. This assistance is intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The Act applies to all Australian states and territories as part of the Commonwealth’s commitment under the Intergovernmental Agreement on Federal Financial Relations. The payments are credited to the COAG Reform Fund, which is established under the COAG Reform Fund Act 2008 and is a Special Account for the purposes of the Financial Management and Accountability Act 1997. The determinations made by the Minister in respect of National Partnership payments are legislative instruments and will be registered on the Federal Register of Legislative Instruments; however, they are exempt from disallowance to allow the Minister to meet the obligation to make payments in a prescribed manner under the Intergovernmental Agreement.

Key Provisions

The Federal Financial Relations (National Partnership Payments) Determination 2009 outlines the provisions for National Partnership payments, which are financial assistance provided by the Commonwealth to the States under the Federal Financial Relations Act 2009 (section 9). These payments aim to support specific outputs, projects, reforms, or reward jurisdictions that deliver on nationally significant reforms. The payments are credited to the COAG Reform Fund, which is a Special Account under the Financial Management and Accountability Act 1997 (section 1). Under this legislation, the Minister for Finance is required to make determinations regarding the National Partnership payments (section 9(1)). These determinations specify the conditions, amounts, and purposes of the payments. Importantly, these determinations are legislative instruments and must be registered on the Federal Register of Legislative Instruments (section 5(1)). However, unlike some other legislative instruments, these determinations are exempt from the disallowance provisions, ensuring that the Minister can fulfil the obligations set out in the Intergovernmental Agreement on Federal Financial Relations (section 5(2)). The obligations imposed by this Act on the parties involved primarily concern the Commonwealth and the States. The Commonwealth, through the Minister for Finance, is obliged to make the National Partnership payments in accordance with the determinations, ensuring they align with the objectives of the Intergovernmental Agreement (section 9(1)). The States, on the other hand, are required to use the funds for the purposes specified in the determinations, which must support nationally agreed reforms and service delivery initiatives. Breaches of the obligations under this Act can lead to civil or criminal consequences, depending on the nature of the breach. While the specific offences and penalties are not detailed in the Explanatory Statement, it is understood that violations of the terms and conditions of the National Partnership payments could result in financial penalties or legal action. The exact penalties would be determined based on the severity of the breach and the relevant laws governing financial administration and accountability.