Overview

The Federal Financial Relations Act 2009 was enacted to provide a framework for the provision of ongoing financial support for the states' service delivery efforts, including National Partnership payments, through the Intergovernmental Agreement on Federal Financial Relations. This Act aims to facilitate reforms and reward jurisdictions that deliver on nationally significant reforms. The determinations regarding National Partnership payments are made by the Treasurer under section 16 of the FFR Act, implementing the payment provisions of the IGA. These determinations are legislative instruments and are registered on the Federal Register of Legislation, although they are exempt from the disallowance provisions of the Legislation Act 2003. The payments are made on the 7th of each month, or the first business day thereafter, and can include extraordinary payments if necessary. The process of making National Partnership payments is subject to extensive consultation with the states and is overseen by the Council of Australian Governments.

Scope and Application

The Federal Financial Relations (National Partnership Payments) Determination No. 115, made under section 16 of the Federal Financial Relations Act 2009, applies to the process of making National Partnership payments from the Commonwealth to the States and Territories in accordance with the Intergovernmental Agreement on Federal Financial Relations. These payments are intended to support service delivery efforts and reforms in specified areas, and the determination ensures that the Commonwealth fulfills its commitment to providing ongoing financial support to the States. The determination applies to the Treasurer and the relevant State and Territory governments, as well as to the COAG Reform Fund, which is established under the COAG Reform Fund Act 2008. The payments are made on a monthly basis, with the possibility of extraordinary payments if necessary, and the determination is not subject to disallowance, ensuring the Commonwealth's obligation is upheld. The scope of the Act extends to all States and Territories of Australia, reflecting a national jurisdictional reach that supports federal financial relations and collaborative policy development. The determination does not specify exclusions, exemptions, or thresholds beyond those outlined in the IGA and the relevant National Partnership agreements.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 115 (January 2017) under the Federal Financial Relations Act 2009 (FFR Act) sets out the framework for the provision of National Partnership payments. These payments, as outlined in section 16 of the FFR Act, are intended to support the States in delivering specified outputs or projects and facilitating reforms (s. 16(1)). The determination specifies the manner in which these payments are to be made, ensuring they align with the Intergovernmental Agreement on Federal Financial Relations (IGA) and the COAG Reform Fund Act 2008. Essentially, the Treasurer is mandated to credit amounts to the COAG Reform Fund to provide financial assistance to the States in the form of National Partnership payments (s. 16(2)). Once credited, these amounts are debited from the COAG Reform Fund to make the grants to the States (s. 16(3)). The obligations imposed by this determination on the parties governed by it are primarily centred on the Commonwealth's responsibility to make the National Partnership payments in accordance with the IGA. The Commonwealth must ensure that these payments are made on the 7th of each month or the first business day thereafter, and extraordinary payments can be made if necessary (s. 16(4)). This obligation is reinforced by the requirement for the Treasurer to credit the necessary amounts to the COAG Reform Fund (s. 16(2)). The determination also mandates that extensive consultation has taken place with the States and that the IGA, along with individual National Partnership agreements, are publicly available (s. 16(5)). The Commonwealth must also ensure that these payments are made in a manner that does not detrimentally impact any human rights, as assessed under the Human Rights (Parliamentary Scrutiny) Act 2011. Breach of the obligations under this determination could result in significant consequences. While specific offences are not detailed in the determination, failure to comply with the IGA could lead to legal challenges from the States, given the Commonwealth's commitment to the provision of on-going financial support. Additionally, the determination is exempt from the disallowance provisions of the Legislation Act 2003, allowing the Treasurer to ensure that the Commonwealth's obligation to make National Partnership payments is met (s. 16(6)). Any failure to adhere to the payment schedule or the consultation process could potentially undermine the collaborative framework established by the IGA. The determination does not specify particular civil or criminal penalties for breaches, but any failure to meet the obligations could result in financial implications for the Commonwealth and potentially impact the delivery of services in the States.