Overview

The Federal Financial Relations (National Specific Purpose Payments) Determination 2013-14 No. 2 was enacted in 2013 to specify the amount for the Disability National Specific Purpose Payment (National SPP) for the financial year 2013-14, in accordance with the Federal Financial Relations Act 2009. This determination was introduced to address the need for clear and defined financial support for state and territory service delivery in key sectors such as schools, skills and workforce development, disability, and housing, as agreed under the Intergovernmental Agreement on Federal Financial Relations. The Act was passed by the Australian Parliament to implement the payment provisions of the IGA, and the policy objective is to provide a robust framework for federal financial relations that facilitates economic and social reforms in areas of national importance. The determination was made by the Minister and is registered on the Federal Register of Legislative Instruments, ensuring that the States and Territories have the flexibility to allocate funds within their relevant sectors to achieve agreed objectives.

Scope and Application

The Federal Financial Relations Act 2009 applies to the Commonwealth, the States, and the Territories, facilitating the implementation of economic and social reforms in areas of national importance through various forms of financial assistance, including National Specific Purpose Payments (National SPPs). The Act allows the Minister to determine the total amounts payable in respect of each National SPP, their indexing methodology, and the division between the States and Territories, all in accordance with the Intergovernmental Agreement on Federal Financial Relations. The Determination made under this Act specifies the amount for the Disability National SPP for 2013-14 and mandates how these payments must be allocated within the relevant service sectors. The application of this legislation is national, extending across all Australian jurisdictions, and it operates within the framework of the IGA, which was developed through extensive consultation with the States and Territories. This legislative instrument does not engage any applicable rights or freedoms under the Human Rights (Parliamentary Scrutiny) Act 2011, ensuring compatibility with human rights.

Key Provisions

The main sections of the Federal Financial Relations (National Specific Purpose Payments) Determination 2013-14 No. 2 (the Determination) outline the provisions for the Disability National Specific Purpose Payment (National SPP) for the financial year 2013-14. Section 1 of the Determination specifies the total amount payable for the Disability National SPP, detailing how this amount is calculated, indexed, and divided among the States and Territories. This is done in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA) and the Federal Financial Relations Act 2009 (the Act). Section 2 details the indexation methodology used to determine the amount payable, ensuring it aligns with the growth factor outlined in the IGA. Section 3 provides for the advance payments made throughout the financial year, based on estimated entitlements, with any adjustments settled in the subsequent financial year. These sections collectively establish the framework for the distribution and use of National SPPs, ensuring they are directed towards specific service sectors such as disability services. The Act imposes several obligations and requirements on the parties involved. Under Section 3 of the Act, the Minister is required to determine the total amounts payable for each National SPP, the indexation methodology, and the division of these amounts between the States and Territories. This determination must be made in accordance with the IGA and must be registered on the Federal Register of Legislative Instruments. The States and Territories, on the other hand, are obligated to spend the National SPPs within the relevant service sectors as outlined in the IGA, although they retain budget flexibility within these sectors to achieve any mutually agreed objectives. This flexibility allows them to tailor their spending to meet specific needs within the designated sectors. Additionally, Section 4 of the Act mandates that the Minister must have regard to the IGA when making any determinations for National SPPs. The Act also outlines the consequences for any breach of its provisions. Although specific offences, penalties, or consequences are not detailed within the Determination, breaches of the Act or the IGA could potentially lead to legal actions under other related legislation. Generally, non-compliance with federal financial agreements could result in legal disputes, financial penalties, or remedial actions to ensure adherence to the agreed terms. The Act's compatibility with human rights, as stated in the Statement of Compatibility with Human Rights, further underscores the importance of adhering to these provisions to maintain proper financial relations between the Commonwealth and the States and Territories. The legislative framework ensures that the payments are used effectively and appropriately, maintaining the integrity of the federal financial relations system.