Federal Financial Relations (National Partnership payments) Determination No. 120 (June 2017)

Overview

The Federal Financial Relations (National Partnership Payments) Determination No. 120, enacted in 2017, was introduced to facilitate the administration and disbursement of National Partnership payments as per the Intergovernmental Agreement on Federal Financial Relations (IGA). This legislation was established under section 16 of the Federal Financial Relations Act 2009, by the Australian Parliament, with the overarching policy objective of supporting the States' service delivery efforts. The determination mandates that these payments are to be made on the 7th of each month, or the first business day thereafter, to the Commonwealth's COAG Reform Fund, from which the payments are debited to the respective States. This process ensures that the Commonwealth meets its obligations under the IGA to provide ongoing financial support for nationally significant reforms and specified outputs or projects. The determination is not subject to disallowance, which ensures the continuous flow of financial assistance to the States as agreed under the IGA.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 120, made under section 16 of the Federal Financial Relations Act 2009, pertains to the provision of financial assistance to the States and Territories through National Partnership payments. These payments are made in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA), which facilitates collaboration between the Commonwealth and the States on policy development and service delivery. The determination applies to the Minister for Treasury, who can be any Treasury portfolio Minister, and the States and Territories, who are the recipients of these payments. The payments are credited to the COAG Reform Fund and subsequently debited to make payments to the States. The geographic reach of this determination is national, covering all States and Territories within Australia. There are no stated exclusions or exemptions, but the amounts paid to each State vary based on their performance under individual National Partnership agreements. The determination is not subject to disallowance under the Legislation Act 2003, ensuring that the Commonwealth's obligation to make these payments is upheld. The determination came into effect on the day it was made, and its provisions can be extended or modified through subordinate instruments as necessary.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 120 (2017) establishes the framework for the Commonwealth's provision of National Partnership payments to States and Territories, pursuant to section 16 of the Federal Financial Relations Act 2009 (FFR Act) (s 16). These payments are intended to support the delivery of specified outputs, facilitate reforms, and reward jurisdictions that achieve nationally significant reforms. Under this determination, payments are made on the 7th of each month, or the first business day thereafter, with the possibility of extraordinary payments if required. The payments are made from the COAG Reform Fund, established under the COAG Reform Fund Act 2008, and are debited from this fund to credit the relevant State accounts. The determination imposes several obligations on the Commonwealth and the States. The Commonwealth must ensure that National Partnership payments are made in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA), which was extensively consulted on and agreed to by the Council of Australian Governments on 29 November 2008. Each State must meet specific milestones and benchmarks under their respective National Partnership agreements to receive the payments. The determination is a legislative instrument, registered on the Federal Register of Legislation, and is exempt from the disallowance provisions of the Legislation Act 2003 to ensure the Commonwealth can meet its obligations under the IGA. Failure to comply with the provisions of this determination may lead to civil or criminal consequences, although specific offences and penalties are not detailed in the explanatory statement. However, the IGA and individual National Partnership agreements are publicly available on the Council for Federal Financial Relations website, indicating a commitment to transparency and accountability. The amounts paid to each State vary as they meet different milestones and benchmarks, and while it is difficult to assess the human rights compatibility of these payments specifically, generally they support a wide range of service delivery areas that contribute to multiple human rights. Overall, the determination aims to facilitate ongoing financial support for States' service delivery efforts, in line with the commitments made under the IGA. It ensures that payments are made in a prescribed manner, with the Commonwealth's obligation to meet these payments being paramount. The determination commenced on the day it was made, reflecting the immediate implementation of the Commonwealth's commitment to the States under the IGA.