EXPLANATORY STATEMENT
Issued by authority of the Treasurer
Federal Financial Relations Act 2009
Federal Financial Relations (National Partnership payments) Determination No. 113 (November 2016)
The Intergovernmental Agreement on Federal Financial Relations (the IGA) provides a foundation for collaboration on policy development and service delivery between the Commonwealth and the States and Territories (the States).
When developing this federal financial relations framework, the Commonwealth committed to the provision of ongoing financial support for the States’ service delivery efforts. This includes the provision of National Partnership payments to support the delivery of specified outputs or projects, to facilitate reforms, and to reward jurisdictions that deliver on nationally significant reforms.
The IGA’s payment provisions in respect of National Partnerships are implemented by way of a determination by the Treasurer under section 16 of the Federal Financial Relations Act 2009 (the FFR Act).
National Partnership payments
The FFR Act provides for the Minister (under current arrangements, the Treasurer) 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. Once the amounts are credited to the COAG Reform Fund they are debited from the fund to make the grants to the States.
The COAG Reform Fund Act 2008 established the COAG Reform Fund and provides that it is a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013.
The Treasurer’s determinations in respect of National Partnership payments are legislative instruments and are registered on the Federal Register of Legislation, but are not disallowable. The Commonwealth has an obligation under the IGA to make National Partnership payments in a prescribed manner. Exemption from the disallowance provisions of the Legislation Act 2003 allows the Treasurer to ensure that this obligation is met.
Consultation
The IGA was subject to extensive consultation with the States and was agreed by the Council of Australian Governments on 29 November 2008. The IGA and individual National Partnership agreements are publicly available on the Council for Federal Financial Relations website.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
It is difficult to assess the human rights compatibility of either the determination or the making of National Partnership payments. The amounts paid to each State vary each month as individual States meet milestones and benchmarks under different National Partnership agreements. However, in general, National Partnership payments support multiple human rights by funding service delivery in a range of policy areas. Consequently, neither this determination nor the making of National Partnership payments more generally could be said to have a detrimental impact on any human right.
Commencement
The determination commenced on the day it was made.