EXPLANATORY STATEMENT
Federal Financial Relations ACt 2009
National Specific Purpose Payment Determination 2009-10
The Intergovernmental Agreement on Federal Financial Relations provides a robust foundation for collaboration on policy development and service delivery, and facilitates the implementation of economic and social reforms in areas of national importance.
In agreeing the new framework for federal financial relations, the Commonwealth committed to the provision of ongoing financial support for the States’ service delivery efforts through:
• general purpose financial assistance, including the ongoing provision of GST payments, to be used by the States for any purpose;
• National Specific Purpose Payments (National SPPs) to be spent in the key service delivery sectors; and
• National Partnership payments to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
The new federal financial framework commenced on 1 January 2009. The payment provisions of the Intergovernmental Agreement are implemented through the Federal Financial Relations Act 2009.
National Specific Purpose Payments (National SPPs)
The Commonwealth provides National SPPs to the States and Territories as a financial contribution to support State and Territory service delivery in the areas of healthcare, schools, skills and workforce development, disability, and affordable housing.
The Federal Financial Relations Act 2009 provides for the Minister to determine for each financial year, the total amount and the manner in which National SPPs are distributed between the States and Territories.
Advance payments in respect of the National SPPs are provided throughout the financial year based on estimates of each jurisdiction’s anticipated entitlement. Any variation between the advances paid to a jurisdiction and the jurisdiction’s determined entitlement is provided in the first practicable payment in the subsequent financial year.
To improve transparency, the Minister’s determinations in respect of National SPPs are legislative instruments and will be registered on the Federal Register of Legislative Instruments.
Commencement
The determination commences on the day it was made.