Overview

The Federal Financial Relations (National Partnership payments) Determination No. 112, made in October 2016, is an instrumental legislative instrument introduced to facilitate the ongoing financial support provided by the Commonwealth to the States and Territories for specified outputs, projects, and reforms. Enacted by the Treasurer under section 16 of the Federal Financial Relations Act 2009, the determination operationalises the intergovernmental agreement on federal financial relations, ensuring that National Partnership payments are made in a prescribed manner as stipulated by the Intergovernmental Agreement on Federal Financial Relations. The determination, while not subject to disallowance, is registered on the Federal Register of Legislation and aims to uphold the Commonwealth's commitment to supporting the states in their service delivery efforts and reforms. The policy objective underpinning this determination is to foster collaboration and ensure efficient service delivery across the nation through targeted financial assistance. The determination was developed following extensive consultation with the states, reflecting the collaborative approach inherent in the Council of Australian Governments framework. By crediting amounts to the COAG Reform Fund and subsequently making grants to the states, the determination ensures that the Commonwealth's financial obligations under the IGA are met. The Statement of Compatibility with Human Rights indicates that the determination, by supporting a range of policy areas, generally aligns with human rights objectives without detrimental impact. The determination came into effect on the day it was made, ensuring immediate implementation of the financial support framework.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 112 applies to the financial assistance provided to the States and Territories in the form of National Partnership payments, as stipulated under the Federal Financial Relations Act 2009. This determination is integral to the implementation of the Intergovernmental Agreement on Federal Financial Relations, which facilitates collaboration and financial support between the Commonwealth and the States in service delivery, policy development, and reform initiatives. The determination applies to the Treasurer, who is responsible for crediting the COAG Reform Fund with amounts designated for these payments and subsequently debiting the fund to distribute the grants to the States. The geographical reach of this determination is national, encompassing all States and Territories within Australia, as it concerns the overarching financial relations framework established by the Commonwealth to support the States’ service delivery efforts. The determination is exempt from disallowance under the Legislation Act 2003, ensuring that the Commonwealth’s obligation to make National Partnership payments is upheld without legislative impediments.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 112 (2016) outlines the provisions for National Partnership payments under the Federal Financial Relations Act 2009 (FFR Act). Section 16 of the FFR Act allows the Minister, currently the Treasurer, to credit funds to the COAG Reform Fund for the purpose of providing financial assistance to the States. These National Partnership payments aim to support the delivery of specified outputs or projects, facilitate reforms, and reward jurisdictions that deliver nationally significant reforms. The amounts credited to the COAG Reform Fund are subsequently debited to make the grants to the States. This fund is a Special Account as per the COAG Reform Fund Act 2008 and is subject to the Public Governance, Performance and Accountability Act 2013. The obligations under this determination require the Commonwealth to make National Partnership payments in a manner prescribed by the Intergovernmental Agreement on Federal Financial Relations (IGA). This obligation is supported by an exemption from the disallowance provisions of the Legislation Act 2003, allowing the Treasurer to ensure these payments are made as required. Extensive consultation with the States was undertaken during the development of the IGA, and both the IGA and individual National Partnership agreements are publicly available. The determination itself is a legislative instrument registered on the Federal Register of Legislation and is not subject to disallowance. There are no specific offences, penalties, or civil/criminal consequences detailed within the determination for breaches of the National Partnership payments provisions. However, the Commonwealth's obligation to make these payments is legally binding under the IGA, and failure to comply could lead to legal actions or disputes between the Commonwealth and the States. The focus of the determination is on facilitating the flow of funds to support agreed policy initiatives and reforms rather than on punitive measures for non-compliance.