EXPLANATORY STATEMENT
Federal Financial Relations (National Partnership Payments) Determination No. 123 (August 2017)
This determination is made under section 16 of the Federal Financial Relations Act 2009 (FFR Act).
Background
The Intergovernmental Agreement on Federal Financial Relations (the IGA) provides a foundation for collaboration on policy development and service delivery between the Commonwealth and the States and Territories (the States).
When developing this framework, the Commonwealth committed to the provision of on‑going financial support for the States’ service delivery efforts. This includes the provision of National Partnership payments to support the delivery of specified outputs or projects, to facilitate reforms, and to reward jurisdictions that deliver on nationally significant reforms. Under the IGA, National Partnership payments are made on the 7th of each month, or the first business day thereafter. Extraordinary payments can be made if necessary.
The IGA’s payment provisions in respect of National Partnerships are implemented by way of a determination by the Treasurer under section 16 of the FFR Act.
National Partnership payments
The FFR Act (s 16) provides that the Minister (who can be any Treasury portfolio Minister) may credit amounts to the COAG Reform Fund for the purpose of providing financial assistance to the States in the form of National Partnership payments. Once the amounts are credited to the COAG Reform Fund they are debited from the fund to make the payments to the States.
The COAG Reform Fund Act 2008 establishes the COAG Reform Fund and provides that it is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.
The Treasurer’s determinations in respect of National Partnership payments are legislative instruments and are registered on the Federal Register of Legislation, but are not disallowable. The Commonwealth has an obligation under the IGA to make National Partnership payments in a prescribed manner. Exemption from the disallowance provisions of the Legislation Act 2003 allows the Minister to ensure that this obligation is met.
Consultation
The IGA was subject to extensive consultation with the States and was agreed by the Council of Australian Governments on 29 November 2008. The IGA and individual National Partnership agreements are publicly available on the Council for Federal Financial Relations website.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
It is difficult to assess the human rights compatibility of either the determination or the making of National Partnership payments more generally. The amounts paid to each State vary each month as individual States meet milestones and benchmarks under different National Partnership agreements. However, in general, National Partnership payments support multiple human rights by funding service delivery in a wide range of policy areas. Consequently, neither this determination nor the making of National Partnership payments more generally could be said to have a detrimental impact on any human right.
Commencement
The determination commenced on the day it was made.
Overview
The Federal Financial Relations (National Partnership Payments) Determination No. 123, made in August 2017, is an instrument under the Federal Financial Relations Act 2009 (FFR Act). This determination was enacted to formalise the ongoing financial support provided by the Commonwealth to the States and Territories for their service delivery efforts, in line with the Intergovernmental Agreement on Federal Financial Relations (IGA). It addresses the need for a structured framework to manage National Partnership payments, ensuring that financial assistance is provided to support specific outputs, facilitate reforms, and incentivise the delivery of nationally significant reforms. The determination was made by the Treasurer under section 16 of the FFR Act and is aimed at fulfilling the Commonwealth's obligation to make National Partnership payments as prescribed by the IGA. The policy objective is to foster collaboration and support for policy development and service delivery across jurisdictions, while ensuring that payments are made in a timely and consistent manner.
Scope and Application
The Federal Financial Relations (National Partnership Payments) Determination No. 123 (August 2017) applies to the Commonwealth of Australia and the States and Territories, providing the mechanism for the Commonwealth to make National Partnership payments to support service delivery and reforms as agreed under the Intergovernmental Agreement on Federal Financial Relations (IGA). This determination is made under section 16 of the Federal Financial Relations Act 2009 (FFR Act) and implements the payment provisions outlined in the IGA. The payments are intended to facilitate reforms and reward jurisdictions that deliver on nationally significant reforms, with the amounts varying according to the milestones and benchmarks set in individual National Partnership agreements. This determination, as a legislative instrument, is registered on the Federal Register of Legislation, but it is exempt from the disallowance provisions of the Legislation Act 2003, allowing the Minister to meet the Commonwealth’s obligation under the IGA. The geographic reach of this determination is national, encompassing all States and Territories of Australia.
Key Provisions
The Federal Financial Relations (National Partnership Payments) Determination No. 123, made under section 16 of the Federal Financial Relations Act 2009 (FFR Act), outlines the specific provisions for National Partnership payments. These payments are intended to support the States and Territories in delivering specified outputs or projects and facilitating reforms. The Minister, who can be any Treasury portfolio Minister, credits amounts to the COAG Reform Fund for this purpose (s 16 FFR Act). The COAG Reform Fund Act 2008 establishes this fund as a special account under the Public Governance, Performance and Accountability Act 2013. Payments are made from this fund to the States, ensuring a formalised structure for financial assistance.
The obligations under this determination include the requirement for the Commonwealth to make National Partnership payments in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA). This agreement was extensively consulted on and agreed to by the Council of Australian Governments on 29 November 2008. The Minister’s role is to ensure that the Commonwealth’s obligation to provide these payments is fulfilled, a responsibility that is facilitated by the exemption from disallowance provisions under the Legislation Act 2003. The IGA and individual National Partnership agreements are publicly available, ensuring transparency and accountability in the process.
In terms of potential breaches and consequences, the determination itself does not explicitly list offences or penalties for non-compliance with the National Partnership payment provisions. However, the underlying legal framework, including the FFR Act and the COAG Reform Fund Act 2008, provides a basis for enforcing compliance. Failure to adhere to the IGA’s provisions could lead to legal actions or other consequences under the applicable legislation. The determination’s focus is on facilitating compliance and ensuring that payments are made in a prescribed manner, with the overarching aim of supporting States in their service delivery efforts.