Federal Financial Relations (National Partnership Payments) Determination 2009 No. 13 (December)

Administered by Department of the Treasury

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EXPLANATORY STATEMENT

Federal Financial Relations ACt 2009

Federal Financial Relations (National Partnership payments) Determination 2009 No. 13 (December)

 

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. 13 was enacted to implement the payment provisions of the Intergovernmental Agreement on Federal Financial Relations, which commenced on 1 January 2009. This Act, introduced by the Parliament of Australia, aims to provide financial assistance to the States in the form of National Partnership payments, thereby supporting the delivery of specified outputs or projects, facilitating reforms, or rewarding jurisdictions that successfully implement nationally significant reforms. The payments are credited to the COAG Reform Fund, which was established under the COAG Reform Fund Act 2008 and designated as a Special Account for the purposes of the Financial Management and Accountability Act 1997. The determinations made by the Minister under this Act are legislative instruments and are subject to registration on the Federal Register of Legislative Instruments. However, they are exempt from disallowance, ensuring that the Minister can fulfill the obligation to make National Partnership payments as prescribed under the Intergovernmental Agreement.

Scope and Application

The Federal Financial Relations (National Partnership Payments) Determination 2009 applies to the provision of National Partnership payments as outlined in the Federal Financial Relations Act 2009. This legislation targets the Commonwealth Minister who is responsible for crediting amounts to the COAG Reform Fund for the purpose of providing financial assistance to the States in the form of National Partnership payments. These payments are intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that implement nationally significant reforms. The Act applies across Australia, as it is part of the Commonwealth’s legislative framework designed to improve federal financial relations with the states. The payments are made in accordance with the Intergovernmental Agreement on Federal Financial Relations, which commenced on 1 January 2009. While the Minister's determinations regarding these payments are legislative instruments and are registered on the Federal Register of Legislative Instruments, they are exempt from disallowance provisions, ensuring that the Minister can meet the obligations under the Intergovernmental Agreement without hindrance.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination 2009 (No. 13) outlines the provisions for National Partnership payments under the Federal Financial Relations Act 2009. According to section 9 of the Act, the Minister credits amounts to the COAG Reform Fund to provide financial assistance to states as National Partnership payments. This determination ensures that these payments are made in a prescribed manner as agreed upon in the Intergovernmental Agreement on Federal Financial Relations. These payments are intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. Under the Act, the Minister is obligated to make National Partnership payments in a manner prescribed by the Intergovernmental Agreement. The determination emphasizes that these payments are not subject to disallowance, which ensures that the Minister can meet these obligations without interference. The payments are credited to the COAG Reform Fund, which was established by the COAG Reform Fund Act 2008 and is considered a Special Account under the Financial Management and Accountability Act 1997. The legislation also mandates that the Minister’s determinations regarding National Partnership payments be registered on the Federal Register of Legislative Instruments, thereby improving transparency. The Act imposes specific obligations on the Minister to ensure that National Partnership payments are made correctly and in accordance with the Intergovernmental Agreement. The Minister must credit the appropriate amounts to the COAG Reform Fund, and these payments must be used for the purposes outlined in the agreement, such as supporting service delivery, facilitating reforms, or rewarding jurisdictions that achieve significant reform outcomes. Furthermore, by exempting these determinations from disallowance, the Act ensures that the Minister’s actions are not subject to legislative challenge, allowing for uninterrupted financial support to states as per the agreement. Breaching the obligations set out in the Act could lead to significant consequences. Although the specific offences and penalties are not detailed in the determination, breaches of similar legislative instruments under the Federal Financial Relations Act 2009 or related acts could result in substantial civil or criminal penalties. For example, if the Minister fails to make the prescribed payments, it could be considered a breach of the Intergovernmental Agreement, potentially leading to legal action or financial penalties. The exact penalties would depend on the nature of the breach and could include fines or other sanctions as prescribed by relevant legislation.

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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.