Overview

The Federal Financial Relations (National Partnership payments) Determination No. 116 was made in February 2017 by the Treasurer under section 16 of the Federal Financial Relations Act 2009. This legislation addresses the need for ongoing financial support for states and territories in their service delivery efforts, as outlined in the Intergovernmental Agreement on Federal Financial Relations. The determination implements the payment provisions of the IGA, providing for the distribution of National Partnership payments to facilitate reforms and reward jurisdictions that deliver on nationally significant reforms. The determination is not subject to disallowance, ensuring the Commonwealth's obligation to make these payments in a prescribed manner is met. The determination commenced on the date it was made, and it is supported by the understanding that National Partnership payments generally support multiple human rights by funding various service delivery initiatives.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 116, made under section 16 of the Federal Financial Relations Act 2009, applies to the Commonwealth and the States and Territories in Australia. This determination outlines the framework for the implementation of National Partnership payments, which are financial assistance provided by the Commonwealth to support the States' service delivery efforts, facilitate reforms, and reward jurisdictions that achieve nationally significant reforms. These payments are made in accordance with the Intergovernmental Agreement on Federal Financial Relations, which was agreed upon by the Council of Australian Governments on 29 November 2008, and are credited to the COAG Reform Fund established under the COAG Reform Fund Act 2008. The determination is not subject to disallowance under the Legislation Act 2003, allowing the Treasurer to meet the Commonwealth's obligation to make National Partnership payments in a prescribed manner. The determination commenced on the day it was made in February 2017. The determination does not specify any exclusions, exemptions, or thresholds that apply to the National Partnership payments. However, it is noted that the amounts paid to each State vary each month as individual States meet milestones and benchmarks under different National Partnership agreements. The determination extends the application of the FFR Act by implementing the payment provisions in respect of National Partnerships. The Treasurer may also make extraordinary payments if necessary, further extending the application of this determination. The determination applies across the Commonwealth, including all states and territories, and is subject to consultation and public availability as outlined in the Intergovernmental Agreement on Federal Financial Relations.

Key Provisions

The main provisions of the Federal Financial Relations (National Partnership payments) Determination No. 116 (February 2017) focus on the implementation of the Intergovernmental Agreement on Federal Financial Relations (IGA) concerning National Partnership payments (s. 16). This determination specifies how these payments are to be made to the States to support service delivery, reforms, and to reward jurisdictions that have delivered on nationally significant reforms. Payments are scheduled to be made on the 7th of each month, or the first business day thereafter, and can be supplemented with extraordinary payments if necessary (s. 1). These payments are credited to the COAG Reform Fund and then debited to make the grants to the States, as established by the COAG Reform Fund Act 2008 and governed by the Public Governance, Performance and Accountability Act 2013. The Act imposes specific obligations on the Treasurer, who is responsible for crediting amounts to the COAG Reform Fund and ensuring the timely disbursement of National Partnership payments in accordance with the IGA. The Treasurer's determinations are legislative instruments, registered on the Federal Register of Legislation, and exempt from the disallowance provisions of the Legislation Act 2003, allowing for the continued fulfilment of the Commonwealth's obligations under the IGA. Furthermore, the determination highlights the importance of consultation, noting that the IGA was subject to extensive consultation with the States and was agreed upon by the Council of Australian Governments on 29 November 2008. Failure to comply with the obligations outlined in the determination may result in civil or administrative consequences. However, the determination itself does not explicitly detail specific penalties for non-compliance. Given the nature of the payments and their reliance on the IGA, any breach of the obligations could potentially lead to disputes or negotiations between the Commonwealth and the States, but no direct criminal or civil penalties are specified in the determination. The human rights compatibility of these payments is generally upheld, as they support multiple human rights by funding various service delivery initiatives, thus not detrimentally impacting any human rights.