Federal Financial Relations (National Partnership Payments) Determination No. 14 (January 2010)

Overview

The Federal Financial Relations Act 2009 was enacted to establish a new framework for federal financial relations, aiming to provide ongoing financial support for state service delivery efforts through various means, including general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. The Act facilitates the implementation of economic and social reforms in areas of national importance, as outlined in the Intergovernmental Agreement on Federal Financial Relations. This framework was intended to ensure a robust foundation for collaboration on policy development and service delivery between the Commonwealth and the states. The Minister is required to credit amounts to the COAG Reform Fund for National Partnership payments, and to make determinations regarding these payments, which are legislative instruments registered on the Federal Register of Legislative Instruments but are exempt from disallowance provisions to ensure the Minister can meet obligations under the Intergovernmental Agreement.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 14, made under the Federal Financial Relations Act 2009, applies to the Minister for Finance who is responsible for crediting amounts to the COAG Reform Fund for National Partnership payments. This determination ensures that these payments are made in a prescribed manner as outlined in the Intergovernmental Agreement on Federal Financial Relations, which commenced on 1 January 2009. The determination clarifies that the Minister’s determinations regarding National Partnership payments are legislative instruments and are registered on the Federal Register of Legislative Instruments. Importantly, these determinations are not subject to disallowance, ensuring the Minister can meet their obligations under the Agreement. The National Partnership payments aim to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that achieve nationally significant reforms, thereby promoting collaboration and efficient service delivery across different sectors and jurisdictions.

Key Provisions

The Federal Financial Relations Act 2009 establishes the framework for National Partnership payments, which are intended to support specific outputs or projects, facilitate reforms, or reward jurisdictions that achieve nationally significant reforms (section 9). Under this Act, the Minister is empowered to credit amounts to the COAG Reform Fund for the purpose of providing financial assistance to the States in the form of National Partnership payments. This fund, established by the COAG Reform Fund Act 2008, is designated as a Special Account for the purposes of the Financial Management and Accountability Act 1997. The obligations under the Act primarily rest with the Minister, who must make National Partnership payments in a prescribed manner as outlined in the Intergovernmental Agreement on Federal Financial Relations (section 9(1)). This commitment ensures ongoing support for States' service delivery efforts, whether through general purpose financial assistance, National Specific Purpose Payments, or targeted National Partnership payments. The Act also mandates that the Minister’s determinations regarding these payments are legislative instruments and must be registered on the Federal Register of Legislative Instruments (section 9(2)). However, these determinations are exempt from the disallowance provisions, allowing the Minister to effectively fulfil the commitment under the Intergovernmental Agreement without the risk of disallowance. The Act imposes a clear requirement on the Minister to adhere to the prescribed manner of making National Partnership payments, as stipulated in the Intergovernmental Agreement. This ensures that the payments are consistent with the agreed framework for federal financial relations and are used effectively to support the intended reforms and service delivery efforts. Additionally, by exempting these determinations from disallowance, the Act facilitates the smooth implementation of the financial support framework, enabling the Minister to meet the obligations under the Intergovernmental Agreement without undue procedural impediments. In terms of consequences for breach, the Act does not specify particular offences or penalties for non-compliance with the provisions regarding National Partnership payments. However, the importance of adhering to the prescribed manner and the commitments under the Intergovernmental Agreement underscores the potential for significant political and reputational consequences if these obligations are not met. Ensuring compliance is therefore critical for maintaining the integrity of the federal financial relations framework and the trust between the Commonwealth and the States.