Federal Financial Relations (National Partnership Payments) Determination 2009 No. 8 (September)

Overview

The Federal Financial Relations Act 2009 was enacted to provide a framework for federal financial relations, ensuring that financial support from the Commonwealth to the states is appropriately structured and managed. This Act addresses the need for a robust and transparent mechanism for delivering financial assistance to states, as agreed upon in the Intergovernmental Agreement on Federal Financial Relations. The Act was enacted by the Parliament of Australia to facilitate collaboration and implementation of economic and social reforms in areas of national importance. Its policy objective is to provide ongoing financial support for the states' service delivery efforts through general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. These payments aim to support specified outputs, facilitate reforms, and reward jurisdictions that deliver on nationally significant reforms. The Act ensures that the Minister’s determinations regarding National Partnership payments are legislative instruments and are registered on the Federal Register of Legislative Instruments, thereby improving transparency while clarifying that these determinations are not subject to disallowance. This allows the Minister to meet the obligation under the Intergovernmental Agreement to make National Partnership payments in a prescribed manner.

Scope and Application

The Federal Financial Relations Act 2009 applies to the implementation of financial arrangements between the Australian Commonwealth and the states, focusing on National Partnership payments as part of the new federal financial framework. These payments are intended to support specific outputs, projects, reforms, or to reward jurisdictions that successfully implement nationally significant reforms. The Act is applicable to all Australian states and territories, facilitating a coordinated approach to economic and social reforms in areas deemed of national importance. The scope of the Act extends to the establishment and administration of the COAG Reform Fund, as outlined in the COAG Reform Fund Act 2008, which is a Special Account under the Financial Management and Accountability Act 1997. The Minister’s determinations regarding National Partnership payments are legislative instruments and are subject to registration on the Federal Register of Legislative Instruments. Notably, these determinations are exempt from the disallowance provisions, allowing the Minister to effectively meet their obligations under the Intergovernmental Agreement. The Act commenced on 1 January 2009, with the determination itself taking effect on the day it was made.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination 2009 (No. 8) under the Federal Financial Relations Act 2009 outlines the framework for 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 (section 1). The determinations made by the Minister regarding these payments are legislative instruments and will be registered on the Federal Register of Legislative Instruments, but they will not be subject to disallowance (section 2). This exemption from disallowance ensures that the Minister can meet the obligations under the Intergovernmental Agreement to make these payments in a prescribed manner. The determination imposes obligations on the Minister to credit amounts to the COAG Reform Fund for the purpose of providing financial assistance to the States (section 3). It also specifies that the COAG Reform Fund is a Special Account under the Financial Management and Accountability Act 1997 (section 4). This ensures that the funds are managed according to the requirements of that Act, thereby providing transparency and accountability in the use of these payments. The Minister must ensure that the payments are made in accordance with the terms of the Intergovernmental Agreement, which includes providing for the specified outputs or projects and supporting nationally significant reforms. There are no specific offences, penalties, or consequences for breach outlined in the determination itself. However, failure to comply with the requirements of the Federal Financial Relations Act 2009 or the Intergovernmental Agreement could potentially lead to legal challenges or disputes over the allocation or use of funds. The determination clarifies that the Minister's determinations regarding National Partnership payments are legislative instruments and are exempt from disallowance, which ensures that the Minister can continue to meet the obligations under the Intergovernmental Agreement without undue interference.