Federal Financial Relations (National Partnership payments) Determination No. 121 (29 June 2017)

Overview

The Federal Financial Relations (National Partnership Payments) Determination No. 121, enacted in 2017, is a legislative instrument under section 16 of the Federal Financial Relations Act 2009. This determination was introduced to formalise the Commonwealth’s commitment to providing ongoing financial support to the States and Territories for their service delivery efforts, as stipulated in the Intergovernmental Agreement on Federal Financial Relations (IGA). The IGA, which was agreed upon by the Council of Australian Governments on 29 November 2008, outlines the framework for collaboration between the Commonwealth and the States in policy development and service delivery. National Partnership payments, which are a key component of this framework, are designed to support the delivery of specified outputs or projects, facilitate reforms, and reward jurisdictions that achieve nationally significant reforms. The determination ensures that the Commonwealth meets its obligations under the IGA to make these payments in a prescribed manner, and it is not subject to disallowance provisions. The payments are made monthly on the 7th, or the first business day thereafter, with the possibility of extraordinary payments if necessary. The amounts paid to each State vary based on their progress in meeting milestones and benchmarks under the various National Partnership agreements.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 121 made under section 16 of the Federal Financial Relations Act 2009 applies to the provision of National Partnership payments by the Commonwealth to the States and Territories for the support of specified outputs or projects, facilitating reforms, and rewarding jurisdictions that deliver on nationally significant reforms. This determination implements the payment provisions outlined in the Intergovernmental Agreement on Federal Financial Relations, which was developed to enhance collaboration on policy and service delivery between the Commonwealth and the States. The payments are credited to the COAG Reform Fund, established under the COAG Reform Fund Act 2008, and subsequently debited to make the payments to the States. The scope of the Act is national, extending across all states and territories within Australia, and its application is not subject to disallowance. This ensures that the Commonwealth’s commitment to the financial support of the states' service delivery efforts is met as per the IGA. The determination commenced on the day it was made, and no exemptions or exclusions are specified, though individual agreements may contain specific terms and conditions.

Key Provisions

The main operative sections of the Federal Financial Relations (National Partnership payments) Determination No. 121 (F2017L00939) involve the provision of financial assistance to the states through National Partnership payments, as outlined in section 16 of the Federal Financial Relations Act 2009 (FFR Act). This determination facilitates the ongoing financial support for state service delivery efforts, as committed under the Intergovernmental Agreement on Federal Financial Relations (IGA). It specifies the crediting of amounts to the COAG Reform Fund and the subsequent debiting of these amounts to make payments to the states. This process ensures that the Commonwealth fulfils its obligation under the IGA to make these payments in a prescribed manner. The determination imposes certain obligations and requirements on the parties involved. Firstly, the Minister, who can be any Treasury portfolio Minister, is responsible for crediting the amounts to the COAG Reform Fund for the purpose of providing financial assistance to the states. Once these amounts are credited, they are debited from the fund to make the payments to the states. The Treasurer’s determinations in respect of National Partnership payments are legislative instruments and are registered on the Federal Register of Legislation. Importantly, these determinations are not subject to disallowance, ensuring that the obligation to make National Partnership payments is consistently met. Additionally, the Commonwealth is obligated to make these payments in accordance with the IGA, which has been subject to extensive consultation with the states and agreed upon by the Council of Australian Governments. Under this determination, there are no specific offences, penalties, or civil/criminal consequences for breach outlined in the text. However, the determination’s exemption from the disallowance provisions of the Legislation Act 2003 ensures that the Minister can effectively carry out the Commonwealth’s obligations under the IGA without the risk of the determination being disallowed. This helps maintain the integrity and continuity of the financial support provided to the states through National Partnership payments. Additionally, the public availability of the IGA and individual National Partnership agreements on the Council for Federal Financial Relations website ensures transparency and accountability in the process.