Overview

The Federal Financial Relations (National Partnership payments) Determination No. 113, made in November 2016 by the Treasurer under the authority of section 16 of the Federal Financial Relations Act 2009, was introduced to implement the payment provisions of the Intergovernmental Agreement on Federal Financial Relations, which aims to support collaboration between the Commonwealth and the States and Territories in policy development and service delivery. The determination facilitates the provision of ongoing financial support for the States' service delivery efforts, including National Partnership payments that assist in the delivery of specified outputs or projects, facilitate reforms, and reward jurisdictions for nationally significant reforms. The Intergovernmental Agreement on Federal Financial Relations, which underpins this determination, was subject to extensive consultation with the States and was agreed by the Council of Australian Governments on 29 November 2008. The Commonwealth's obligation to make National Partnership payments in a prescribed manner is met through this determination, which is exempt from the disallowance provisions of the Legislation Act 2003 to ensure this commitment is upheld.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 113, made under section 16 of the Federal Financial Relations Act 2009, governs the provision of National Partnership payments by the Commonwealth to the States and Territories. These payments are integral to the Intergovernmental Agreement on Federal Financial Relations, aimed at fostering collaboration and providing ongoing financial support for service delivery and policy reforms. The determination, made by the Treasurer, is a legislative instrument and is registered on the Federal Register of Legislation, though it is exempt from disallowance provisions to ensure compliance with the Commonwealth’s obligations under the IGA. It applies to the States and Territories, providing them with financial assistance to achieve specified outputs or projects, facilitate reforms, and reward jurisdictions that successfully implement nationally significant reforms. The amounts allocated to each State vary based on their progress under different National Partnership agreements, which are developed through extensive consultation with the States and are publicly available. The determination came into effect on the day it was made.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 113 under section 16 of the Federal Financial Relations Act 2009 (FFR Act) outlines the specific provisions for National Partnership payments, which are financial aids provided to the States and Territories for the delivery of specified outputs or projects, facilitating reforms, and rewarding jurisdictions that undertake nationally significant reforms (s. 16). The determination enables the Minister, currently the Treasurer, to credit the COAG Reform Fund with amounts intended for National Partnership payments, which are then debited from the fund to make grants to the States (s. 16). The obligations imposed by this Act on the parties include the Commonwealth's commitment to provide ongoing financial support to the States, ensuring that the National Partnership payments are made in a prescribed manner in line with the Intergovernmental Agreement on Federal Financial Relations (IGA). The Treasurer has the authority to credit amounts to the COAG Reform Fund for National Partnership payments, and the fund itself is a Special Account as established by the COAG Reform Fund Act 2008 and governed by the Public Governance, Performance and Accountability Act 2013. The determinations made by the Treasurer are legislative instruments registered on the Federal Register of Legislation, and the exemption from disallowance provisions under the Legislation Act 2003 ensures the obligation to make payments is met. Under the Act, any breach of the provisions regarding National Partnership payments could lead to civil or criminal consequences. However, the Explanatory Statement does not specify the exact nature of these consequences or any penalties. It is noted that the determinations are not disallowable, which means they cannot be formally annulled by a resolution of either House of Parliament, ensuring the continuity and reliability of the National Partnership payments as per the IGA. The amounts paid to each State are subject to change based on individual States meeting milestones and benchmarks under various National Partnership agreements, but the overarching objective remains the support of human rights through the funding of service delivery in various policy areas.