Overview

The Federal Financial Relations (National Partnership payments) Determination No. 114, made in December 2016 under the Federal Financial Relations Act 2009, addresses the need for ongoing financial support for the States and Territories in delivering specified outputs and projects, facilitating reforms, and rewarding jurisdictions that implement nationally significant reforms. This determination was enacted by the Treasurer, in accordance with the Intergovernmental Agreement on Federal Financial Relations, to ensure that the Commonwealth meets its obligations under the Agreement to provide National Partnership payments. The primary policy objective is to enhance collaboration and service delivery across the federal financial relations framework, supporting various human rights through the funding of service delivery in multiple policy areas. The determination came into effect on the day it was made, and while it is not subject to disallowance, it is registered on the Federal Register of Legislation.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 114, made under the Federal Financial Relations Act 2009, applies to the Commonwealth government and the States and Territories, facilitating the provision of financial assistance through National Partnership payments. These payments support the States in delivering specified outputs or projects, undertaking reforms, and achieving nationally significant outcomes as agreed upon in the Intergovernmental Agreement on Federal Financial Relations. The determination establishes the criteria and manner in which these payments are to be made, ensuring compliance with the obligations outlined in the IGA. The reach of this legislation is national, applying across all States and Territories in Australia. While the determination itself is not disallowable, it is subject to the approval and ongoing review processes as per the IGA, and the amounts credited to the COAG Reform Fund are managed according to the provisions of the COAG Reform Fund Act 2008 and the Public Governance, Performance and Accountability Act 2013. The determination does not explicitly outline any exclusions or thresholds, but the specific conditions and payments are subject to individual National Partnership agreements.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 114 (December 2016) provides the framework for the Commonwealth's National Partnership payments to the States and Territories. The determination is issued under section 16 of the Federal Financial Relations Act 2009 (FFR Act) (section 1). The amounts credited to the COAG Reform Fund under this determination are intended to support States' service delivery efforts, facilitate reforms, and reward jurisdictions that achieve nationally significant reforms (section 1). The amounts are debited from the COAG Reform Fund to make the grants to the States (section 1). The determination is not subject to disallowance, which ensures that the Commonwealth's obligation under the Intergovernmental Agreement on Federal Financial Relations to make these payments in a prescribed manner is met (section 1). Under this determination, the Commonwealth is obligated to make National Partnership payments to the States in accordance with the specific terms and conditions set out in the determination (section 1). The determination outlines the eligibility criteria, payment schedules, and reporting requirements for the payments. The States, in turn, must meet the milestones and benchmarks set out in the individual National Partnership agreements to receive the payments (section 1). The determination also requires the Commonwealth to consult with the States and Territories during the development process and to make the determination publicly available (section 1). The IGA was subject to extensive consultation with the States and was agreed by the Council of Australian Governments on 29 November 2008 (section 1). The IGA and individual National Partnership agreements are publicly available on the Council for Federal Financial Relations website (section 1). Breaching the terms and conditions of this determination may have legal consequences for the Commonwealth or the States, depending on the nature and severity of the breach. For example, if a State fails to meet the milestones and benchmarks required to receive a payment, it may be ineligible for future payments under the relevant National Partnership agreement (section 1). The determination does not specify any particular offences, penalties, or civil or criminal consequences for breach. However, the FFR Act and other relevant legislation may provide for such consequences in certain circumstances (section 1). The maximum penalties for offences under the FFR Act are set out in the legislation and may include fines and imprisonment (section 1). The Commonwealth is also subject to the general law, which may provide for civil or criminal liability for breaches of contract or other legal obligations (section 1).