Federal Financial Relations (National Partnership payments) Determination No. 90 (March 2015)

Overview

The Federal Financial Relations (National Partnership payments) Determination No. 90, issued in March 2015, is part of the legislative framework established by the Federal Financial Relations Act 2009. This Act was enacted to facilitate a robust and collaborative approach to federal financial relations, aiming to support the states in their service delivery efforts through various forms of financial assistance. The Act provides for the provision of general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments, all aimed at facilitating economic and social reforms in areas of national importance. The National Partnership payments are designed to support the delivery of specified outputs or projects, encourage reforms, and reward jurisdictions that achieve nationally significant reforms. The determination by the Minister is a legislative instrument, registered on the Federal Register of Legislative Instruments, and exempt from disallowance to ensure the Minister can meet their obligations under the Intergovernmental Agreement on Federal Financial Relations. This agreement, signed by all jurisdictions in December 2008, was the result of extensive consultation and is publicly available.

Scope and Application

The Federal Financial Relations (National Partnership payments) Determination No. 90, made under the Federal Financial Relations Act 2009, applies to the provision of financial assistance to the states in the form of National Partnership payments. These payments are designed to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver on nationally significant reforms, as part of the broader federal financial relations framework. The Act applies to the Minister for Finance, who is responsible for crediting amounts to the COAG Reform Fund for this purpose. The COAG Reform Fund, established under the COAG Reform Fund Act 2008, serves as a Special Account for these payments under the Financial Management and Accountability Act 1997. This determination clarifies that the Minister's determinations regarding National Partnership payments, although legislative instruments, will be registered on the Federal Register of Legislative Instruments but will not be subject to disallowance provisions. This exemption allows the Minister to meet the obligation under the Intergovernmental Agreement on Federal Financial Relations to make National Partnership payments in a prescribed manner. The determination commenced on the day it was made, and it is applicable to all states that have signed the relevant National Partnership agreements as part of the extensive consultation process that preceded the agreement.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 90 outlines the framework under which National Partnership payments are made as part of the intergovernmental agreement on federal financial relations. Under Section 9(1) of the Federal Financial Relations Act 2009, the Minister for Finance 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. These payments are intended to support the delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that achieve nationally significant reforms. The obligations imposed on the parties by this determination include the requirement for the Minister to make these payments in a prescribed manner as stipulated in the Intergovernmental Agreement on Federal Financial Relations (IGA). The Minister is also required to consult extensively with the States, which must sign relevant National Partnership agreements before payments are made. This process ensures that the payments are aligned with nationally significant reforms and agreed-upon objectives. In terms of enforcement, the determination clarifies 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. Importantly, these determinations are exempt from the disallowance provisions under the Legislative Instruments Act 2003, ensuring that the Minister can meet the obligations outlined in the IGA without hindrance. Offences or breaches of the provisions within this determination may not be explicitly outlined in the explanatory statement, but the general legal framework allows for enforcement through administrative and judicial processes. Penalties for non-compliance could include financial penalties or legal action to compel compliance with the IGA, ensuring that the National Partnership payments are made as required. The maximum penalties for such breaches would be in line with those prescribed under the relevant Acts governing financial management and legislative instruments.