Federal Financial Relations (National Partnership payments) Determination No. 92 (May 2015)

Overview

The Federal Financial Relations (National Partnership payments) Determination No. 92 of 2015 is a legislative instrument that implements the National Partnership payments under the Federal Financial Relations Act 2009. Enacted by the Parliament of Australia, the Act was introduced to provide a structured framework for financial assistance to the states, ensuring ongoing support for service delivery efforts and facilitating reforms in areas of national importance. This legislation is instrumental in maintaining and enhancing federal financial relations, offering general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments, the latter being the focus of this determination. The objective of this determination is to ensure clarity and transparency in the allocation and usage of these payments, thereby supporting the objectives outlined in the Intergovernmental Agreement on Federal Financial Relations. This determination ensures that the payments are made in a prescribed manner, reflecting the commitment of the Commonwealth to the states' service delivery efforts as agreed under the IGA. The payments are credited to the COAG Reform Fund, established under the COAG Reform Fund Act 2008, which is designated as a Special Account for the purposes of the Financial Management and Accountability Act 1997. Notably, the Minister's determinations regarding these payments are legislative instruments that will be registered on the Federal Register of Legislative Instruments but will not be subject to disallowance, ensuring that the Minister can meet the obligations set out in the IGA without procedural hindrance. The commencement of this determination aligns with the effective date of the IGA and subsequent agreements, reinforcing the collaborative approach to economic and social reforms across Australia.

Scope and Application

The Federal Financial Relations (National Partnership Payments) Determination No. 92, 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 the purpose of providing 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. The legislation applies to all states and territories of Australia, as it is part of the broader Intergovernmental Agreement on Federal Financial Relations (IGA) that was signed by all jurisdictions in December 2008. The IGA facilitates the implementation of economic and social reforms in areas of national importance, with the Commonwealth committing to provide ongoing financial support for the states' service delivery efforts through general purpose financial assistance, National Specific Purpose Payments, and National Partnership payments. 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. This ensures that the Minister can meet their obligations under the IGA to make National Partnership payments in a prescribed manner.

Key Provisions

The main operative sections of the Federal Financial Relations (National Partnership Payments) Determination No. 92 (May 2015) revolve around the allocation and disbursement of National Partnership payments, as outlined in section 9(1) of the Federal Financial Relations Act 2009. These payments are intended to provide financial assistance to states in support of specified outputs or projects, facilitating reforms or rewarding jurisdictions that deliver on nationally significant reforms. The determination sets out the framework under which these payments are to be made, ensuring they are used for their intended purposes. Under the Act, the obligations imposed on the parties primarily revolve around the transparent and efficient use of National Partnership payments. The Minister is mandated to credit amounts to the COAG Reform Fund for this purpose, as specified in section 9(1) of the Federal Financial Relations Act 2009. The COAG Reform Fund Act 2008 further stipulates that this fund is a Special Account governed by the Financial Management and Accountability Act 1997, ensuring that the fund's use is subject to stringent financial management practices. Additionally, the Minister is required to make these determinations in a manner that respects the obligations set out in the Intergovernmental Agreement on Federal Financial Relations (IGA), which was extensively consulted on and signed by all jurisdictions in December 2008. In terms of offences and penalties, the legislation does not explicitly detail criminal or civil penalties for breach of the National Partnership payment provisions. However, the importance of adhering to the IGA and the terms of the determinations is underscored by the potential for non-compliance to affect the ongoing relationship and trust between the Commonwealth and the States. Non-compliance or mismanagement of funds could lead to broader financial and governance issues, which might prompt further legislative or regulatory action to address breaches. The determinations themselves are legislative instruments that are registered on the Federal Register of Legislative Instruments, but they are exempt from disallowance, ensuring the Minister can meet the obligations under the IGA without undue legislative hindrance.