Federal Financial Relations (National Partnership payments) Determination No. 28 (December 2010)

Overview

The Federal Financial Relations (National Partnership payments) Determination No. 28, enacted in December 2010, serves to implement the provisions of the Federal Financial Relations Act 2009 concerning National Partnership payments. This legislation was introduced to address the need for a structured and transparent framework for ongoing financial support to the states, facilitating collaboration in key service delivery sectors and promoting economic and social reforms of national importance. The determinations made by the Minister under this Act are legislative instruments, registered on the Federal Register of Legislative Instruments, but are exempt from disallowance provisions, ensuring the Minister can effectively meet the obligations under the Intergovernmental Agreement. The Federal Financial Relations Act 2009, enacted by the Australian Parliament, established the basis for this financial framework, which commenced on 1 January 2009, aiming to enhance transparency and accountability in the provision of financial assistance to the states.

Scope and Application

The Federal Financial Relations Act 2009, as implemented through the Federal Financial Relations (National Partnership payments) Determination No. 28, applies to the provision of financial assistance to the states in the form of National Partnership payments, with these payments being credited to the COAG Reform Fund. This legislation ensures the ongoing support of states in delivering key services and facilitating economic and social reforms, as outlined in the Intergovernmental Agreement on Federal Financial Relations. It applies to the Minister who is responsible for making the National Partnership payments, as well as to the states that are recipients of these payments. The Act does not extend to disallowable legislative instruments, as the Minister’s determinations regarding National Partnership payments are legislative instruments but exempt from disallowance to facilitate the prescribed obligation under the Intergovernmental Agreement. The Act’s jurisdictional reach is national, as it pertains to the collaborative framework for federal financial relations across Australia.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 28 (2010) outlines key provisions for the administration of National Partnership payments under the Federal Financial Relations Act 2009. According to section 9(1) of the Act, the Minister is authorised to credit amounts to the COAG Reform Fund, which was established by the COAG Reform Fund Act 2008, for the purpose of providing financial assistance to the states in the form of National Partnership payments. These payments are intended to support specific outputs, projects, reforms, or to reward jurisdictions that achieve nationally significant reforms. The obligations imposed by this determination are primarily on the Minister, who must ensure that the National Partnership payments are made in accordance with the terms set out in the Intergovernmental Agreement on Federal Financial Relations. The Minister's determinations regarding these payments are legislative instruments and are registered on the Federal Register of Legislative Instruments. Notably, these determinations are exempt from the disallowance provisions under section 5 of the Legislative Instruments Act 2003, allowing for the Minister to meet their obligations without the risk of the determinations being disallowed. In terms of consequences for non-compliance, the Explanatory Statement does not specify explicit offences, penalties, or civil/criminal consequences for breach of the provisions outlined in the determination. However, the importance of adhering to the Intergovernmental Agreement's framework for federal financial relations implies that any failure to comply with the obligations could lead to broader implications, such as disputes or negotiations under the federal financial relations mechanism. The overarching aim is to ensure the effective and transparent delivery of National Partnership payments, thereby supporting the collaborative policy development and service delivery efforts across jurisdictions.