Overview

The Federal Financial Relations (National Partnership payments) Determination No. 105, issued in April 2016, provides a legislative framework for the administration of National Partnership payments under the Federal Financial Relations Act 2009. This Act, enacted in 2009, was introduced to establish a comprehensive system for federal financial relations between the Commonwealth and the States and Territories. The determination aims to clarify the legal status of payments made under the intergovernmental agreement, ensuring they are not subject to disallowance while enhancing transparency by registering them on the Federal Register of Legislation. This legislative instrument was created to meet the obligations outlined in the Intergovernmental Agreement on Federal Financial Relations, which facilitates collaboration and service delivery across various sectors, and was developed following extensive consultation with the States. The determination also addresses human rights compatibility by affirming that the payments generally support service delivery, thereby promoting multiple human rights without detrimental impacts.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 105, issued under the Federal Financial Relations Act 2009, applies to the financial assistance provided to the states and territories of Australia 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 deliver on nationally significant reforms. The determination clarifies that the Minister’s determinations regarding National Partnership payments are legislative instruments, registered on the Federal Register of Legislation, but are exempt from the disallowance provisions to ensure the Minister can meet the obligations set out in the Intergovernmental Agreement on Federal Financial Relations. The determination applies nationally across Australia, encompassing all states and territories that enter into National Partnership Agreements with the Commonwealth. It is important to note that these payments are subject to consultation and agreement between the Commonwealth and the states, and are designed to enhance collaboration on policy development and service delivery in areas of national importance.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 105 outlines the provisions for National Partnership payments, as stipulated in the Federal Financial Relations Act 2009 (FFR Act) (Section 16). These payments are made to States for specified outputs, projects, or to support reforms and reward jurisdictions that deliver on nationally significant reforms. The payments are credited to the COAG Reform Fund, which is a Special Account under the Public Governance, Performance and Accountability Act 2013 (Section 9). The determinations made by the Minister are legislative instruments and are registered on the Federal Register of Legislation; however, they are exempt from disallowance provisions to ensure the Minister can meet the obligations under the Intergovernmental Agreement on Federal Financial Relations (IGA) (Section 5 of the Legislative Instruments Act 2003). Under the determination, the Commonwealth is obligated to provide financial assistance to the States in the form of National Partnership payments, in accordance with the IGA. This financial assistance is intended to support service delivery in key areas, such as health, education, and infrastructure, and to facilitate reforms in areas of national importance. The States, in turn, are required to meet the milestones and benchmarks set out in the relevant National Partnerships to receive these payments. The IGA, which underpins the National Partnership payments, was subject to extensive consultation with the States and was agreed upon by the Council of Australian Governments (COAG) on 29 November 2008. The IGA is publicly available on the Council for Federal Financial Relations website, and there is ongoing consultation with the States regarding the National Partnership payments as they must sign relevant National Partnerships. The determination does not specify any offences or penalties for breach, as it primarily outlines the framework for making National Partnership payments. However, any failure by the Commonwealth to make payments in accordance with the IGA or by the States to meet the milestones and benchmarks could potentially lead to disputes or negotiations under the IGA. While the determination itself does not impose specific penalties, the IGA may provide for consequences in such cases. It is important to note that the human rights compatibility of the determination and the making of National Partnership payments is difficult to assess due to the varying amounts paid to each state each month, as individual States meet varying milestones and benchmarks under different National Partnerships. However, in general, National Partnerships are expected to promote multiple human rights by facilitating the provision of additional funding to the States to support service delivery in a range of areas. Therefore, neither this determination nor the making of National Partnership payments could be said to have a detrimental impact on any human rights. The determination commences on the day it was made.