Federal Financial Relations (National Partnership payments) Determination No. 93 (June 2015)

Overview

The Federal Financial Relations (National Partnership payments) Determination No. 93, made in June 2015, operates under the Federal Financial Relations Act 2009 to facilitate the implementation of the Intergovernmental Agreement on Federal Financial Relations (IGA). This Act was enacted to address the need for a robust framework for collaboration between the Commonwealth and the states in policy development and service delivery, particularly through the provision of financial assistance to states in key service sectors. The Federal Financial Relations Act 2009 was introduced by the Australian Parliament to establish a structured approach to financial relations between the Commonwealth and the states, ensuring the ongoing support of states' service delivery efforts. The policy objective of this Act, as reflected in the IGA, is to support the delivery of specified outputs or projects, facilitate reforms, and reward jurisdictions that achieve nationally significant reforms. The National Partnership payments, as part of this framework, aim to enhance transparency and ensure that the financial assistance provided is in line with agreed-upon national priorities.

Scope and Application

The Federal Financial Relations (National Partnership Payments) Determination No. 93, issued in June 2015 under the Federal Financial Relations Act 2009, governs the provision of National Partnership payments, which are financial assistances to states for the delivery of specified outputs, projects, reforms, or as rewards for nationally significant reforms. These payments are made to support collaborative efforts in areas of national importance as outlined in the Intergovernmental Agreement on Federal Financial Relations (IGA), which commenced on 1 January 2009. The IGA was extensively consulted with and signed by all states, ensuring a broad consensus on the framework for federal financial relations. The Minister’s determinations regarding these payments are legislative instruments registered on the Federal Register of Legislative Instruments, though they are exempt from disallowance, ensuring the Minister can meet their obligations under the IGA. The Act applies to all states, and the payments are intended to enhance transparency and accountability in federal financial support mechanisms.

Key Provisions

The Federal Financial Relations (National Partnership payments) Determination No. 93 (June 2015) under the Federal Financial Relations Act 2009 establishes the framework for the distribution of National Partnership payments to the States (section 9). These payments are designed to support specific outputs or projects, facilitate reforms, or reward jurisdictions that successfully implement nationally significant reforms. The Minister is responsible for crediting amounts to the COAG Reform Fund for these payments, and these determinations are legislative instruments that are registered on the Federal Register of Legislative Instruments but are exempt from disallowance provisions (section 9(1), Legislative Instruments Act 2003). The obligations under this determination include ensuring that National Partnership payments are made in a prescribed manner, as stipulated by the Intergovernmental Agreement on Federal Financial Relations (IGA). This obligation is explicitly stated in the IGA, which was extensively consulted on and signed by all jurisdictions in December 2008. The Minister's role is to facilitate these payments as per the terms of the IGA, and any determinations made in this regard must be consistent with the IGA’s provisions. The Minister must also consult extensively with the States when making these determinations, as the States are required to sign relevant National Partnership agreements. There are no specific offences, penalties, or consequences outlined in this determination for non-compliance with the requirements to make National Partnership payments. However, failure to adhere to the prescribed manner of making these payments as outlined in the IGA could potentially lead to legal challenges or disputes between the Commonwealth and the States. The IGA itself provides the overarching framework for resolving such issues, and any significant breaches could be addressed through the mechanisms established within the IGA. The Minister's obligation to consult extensively with the States and make payments in a prescribed manner is central to maintaining the integrity of federal financial relations as intended by the IGA.