Federal Financial Relations (National Partnership Payments) Determination No. 39 (September 2011)

Overview

The Federal Financial Relations Act 2009 was enacted to establish a new framework for federal financial relations, facilitating collaboration between the Commonwealth and the states on policy development and service delivery. This Act aims to provide on-going financial support to the states for service delivery efforts, encompassing general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. These payments support the delivery of specified outputs, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The Act was enacted by the Commonwealth Parliament to ensure a robust foundation for economic and social reforms in areas of national importance. The primary policy objective is to enhance transparency and accountability in the allocation and management of federal financial support to the states, thereby fostering cooperative federalism and improving service delivery across Australia. The Federal Financial Relations (National Partnership payments) Determination No. 39, made in September 2011, further clarifies the implementation of National Partnership payments. These payments are credited to the COAG Reform Fund, established under the COAG Reform Fund Act 2008, which is a Special Account as defined by the Financial Management and Accountability Act 1997. The Minister’s determinations regarding these payments are legislative instruments and are registered on the Federal Register of Legislative Instruments, although they are exempt from disallowance provisions. This exemption allows the Minister to meet the obligations under the Intergovernmental Agreement to make National Partnership payments in a prescribed manner, ensuring the timely and effective provision of financial assistance to the states.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 39 (September 2011) applies to the implementation of National Partnership payments under the Federal Financial Relations Act 2009, which is part of the broader framework established by the Intergovernmental Agreement on Federal Financial Relations. This Act facilitates the provision of financial assistance to states for service delivery and reform efforts in areas of national importance. The payments are intended to support specified outputs or projects, reforms, or to reward jurisdictions that deliver on significant reforms. The COAG Reform Fund Act 2008 establishes the COAG Reform Fund as a Special Account under the Financial Management and Accountability Act 1997. Determinations made by the Minister regarding these payments are legislative instruments and will be registered on the Federal Register of Legislative Instruments, though they are exempt from disallowance provisions to ensure the Minister can meet their obligations under the Intergovernmental Agreement. The determination took effect on the day it was made.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 39, made under the Federal Financial Relations Act 2009, outlines the framework for National Partnership payments. These payments are intended to provide financial assistance to states for specified outputs or projects, to facilitate reforms, or to reward jurisdictions that deliver on nationally significant reforms (section 1). The determination, which commenced on the day it was made, involves crediting amounts to the COAG Reform Fund for this purpose. This fund was established under the COAG Reform Fund Act 2008 and is designated as a Special Account under the Financial Management and Accountability Act 1997 (section 2). The obligations imposed by this legislation include the Minister’s duty to credit the COAG Reform Fund with amounts intended for National Partnership payments, as specified in the determination (section 3). The Minister is obligated to adhere to the prescribed manner outlined in the Intergovernmental Agreement for making these payments. Additionally, the determinations made by the Minister under section 9(1) of the Act are legislative instruments and must be registered on the Federal Register of Legislative Instruments. Importantly, these determinations are exempt from disallowance, which allows the Minister to meet the obligation to make National Partnership payments without the risk of the determination being disallowed by either House of Parliament (section 4). The determination also outlines the consequences for non-compliance. While specific offences and penalties are not detailed within the explanatory statement, breaches of the obligations under the Federal Financial Relations Act 2009 could potentially lead to civil or criminal consequences, depending on the nature of the breach. The maximum penalties for such breaches would be determined by the relevant legislation and the courts. The legislation’s focus on transparency and accountability underscores the importance of adhering to the outlined provisions to ensure the effective implementation of federal financial relations and the intended support for state-level service delivery efforts.