Overview

The Federal Financial Relations (National Partnership payments) Determination No. 111, made in September 2016 under the authority of the Treasurer, was introduced to address the need for a robust framework for collaboration and financial support between the Commonwealth and the States and Territories in service delivery and economic and social reforms. This determination was enacted to provide further clarity and governance over National Partnership payments, which are a key component of the financial support system established by the Intergovernmental Agreement on Federal Financial Relations (IGA). The policy objective, as outlined in the IGA, is to facilitate the implementation of reforms and support service delivery through financial assistance. The determination ensures that these payments, which are used to support specified outputs, projects, reforms, or to reward jurisdictions for nationally significant reforms, are made in a transparent and accountable manner, as they are legislative instruments subject to registration on the Federal Register of Legislation but exempt from disallowance. This legislative framework aims to promote efficient and transparent financial relations between the Commonwealth and the States, ensuring that the payments are made in accordance with the obligations set out in the IGA.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 111 applies to the Minister for Finance who is required 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 Act applies nationally across the Commonwealth, states, and territories of Australia as part of the broader framework established by the Intergovernmental Agreement on Federal Financial Relations. The Act is designed to support the delivery of specified outputs or projects, facilitate reforms, and reward jurisdictions that deliver on nationally significant reforms. The Act is not subject to disallowance, which allows the Minister to meet the obligation of making National Partnership payments in a prescribed manner as per the IGA. There are no stated exclusions or thresholds in the Act, but it is noted that the amounts paid to each state vary each month based on individual States meeting varying milestones and benchmarks under different National Partnerships. The Act commenced on the day it was made and extends the application of the Federal Financial Relations Act 2009 through subordinate instruments.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 111, under Section 16 of the Federal Financial Relations Act 2009, outlines the framework for National Partnership payments. These payments are designed to provide financial assistance to states for specified outputs, projects, reforms, or rewards for nationally significant reforms. The determination clarifies that such payments, made by the Minister under subsection 9(1), are legislative instruments and must be registered on the Federal Register of Legislation. Importantly, these determinations are exempt from disallowance, ensuring the Minister can meet obligations under the Intergovernmental Agreement on Federal Financial Relations (IGA). This agreement, reached after extensive consultation with the states and approved by the Council of Australian Governments (COAG) on 29 November 2008, is publicly accessible on the Council for Federal Financial Relations website. The obligations under this Act primarily concern the Minister, who is tasked with crediting amounts to the COAG Reform Fund for National Partnership payments. The determination specifies that these payments must be made in a prescribed manner, consistent with the IGA. The COAG Reform Fund, established under the COAG Reform Fund Act 2008, is a Special Account as defined by the Public Governance, Performance and Accountability Act 2013. Furthermore, the determination mandates that there must be extensive consultation with the states, as they are required to sign relevant National Partnerships agreements. In terms of potential breaches and consequences, the Act does not explicitly detail specific offences, penalties, or civil/criminal consequences for non-compliance with the National Partnership payments provisions. However, the legislative framework is designed to ensure transparency and accountability, with the Minister’s determinations being legislative instruments subject to registration and public scrutiny. Non-compliance with the requirements outlined in the IGA or the determination could potentially lead to legal or political repercussions, although these are not explicitly stated in the provided text. The determination itself is effective from the date of its issuance, ensuring immediate applicability of its provisions.