Federal Financial Relations (National Partnership payments) Determination No. 80 (June 2014)

Overview

The Federal Financial Relations (National Partnership Payments) Determination No. 80, made in June 2014 under the Federal Financial Relations Act 2009, aims to provide financial assistance to the states in the form of National Partnership payments. The determination was enacted by the Australian Parliament to address the need for a robust framework for collaboration between the Commonwealth and the states on policy development and service delivery, particularly in areas of national importance. The Intergovernmental Agreement on Federal Financial Relations (the IGA), which underpins this legislation, commits the Commonwealth to ongoing financial support for the states' service delivery efforts through various forms of assistance, including general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. These payments are intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The determinations made by the Minister are legislative instruments and are subject to registration on the Federal Register of Legislative Instruments, though they are exempt from the disallowance provisions to allow the Minister to meet the obligations under the IGA.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 80, made in June 2014, applies to the implementation of National Partnership payments as outlined in the Intergovernmental Agreement on Federal Financial Relations (IGA). This determination specifically governs the crediting of amounts to the COAG Reform Fund to provide financial assistance to the States in the form of National Partnership payments, as stipulated under the Federal Financial Relations Act 2009. The legislation applies to all states and territories in Australia, thereby establishing a national framework for these payments. The primary purpose of these payments is to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The determination ensures that the payments are made in a manner consistent with the obligations under the IGA, which was extensively consulted on and signed by all jurisdictions. The legislation does not extend to disallowable instruments, facilitating the Minister's obligation to make National Partnership payments.

Key Provisions

The Federal Financial Relations (National Partnership Payments) Determination No. 80, which was made in June 2014, specifies the provisions for National Partnership payments under the Federal Financial Relations Act 2009. According to section 9(1) of the Act, the Minister is required to credit amounts to the COAG Reform Fund to provide financial assistance to the States in the form of National Partnership payments. These payments are intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms. The amounts credited to the COAG Reform Fund are specified in the determination and are registered on the Federal Register of Legislative Instruments. It is important to note that the Minister's determinations in respect of National Partnership payments are legislative instruments and will be registered on the Federal Register of Legislative Instruments, but will not be disallowable (section 9(4)). The obligations and requirements imposed by the Act on the parties it governs are primarily focused on the provision of National Partnership payments. The Commonwealth is required to credit amounts to the COAG Reform Fund, while the States are required to use the funds for the specified purposes outlined in the National Partnership agreements. The Act also requires extensive consultation with the States on National Partnership payments, as all parties are required to sign the National Partnership agreement. The determination is subject to the Intergovernmental Agreement on Federal Financial Relations (IGA), which was signed by all jurisdictions in December 2008 and is publicly available on the Council for Federal Financial Relations website. There are no specific offences, penalties, or civil/criminal consequences outlined in the determination for breach of the provisions. However, failure to comply with the requirements of the IGA or the National Partnership agreements may have implications for the ongoing provision of National Partnership payments and the overall framework for federal financial relations. It is worth noting that the Minister's determinations in respect of National Partnership payments are not subject to disallowance, which allows the Minister to meet their obligation under the IGA to make National Partnership payments in a prescribed manner.