EXPLANATORY STATEMENT
Federal Financial Relations Act 2009
Federal Financial Relations (National Specific Purpose Payments) Determination 2015-16
The Intergovernmental Agreement on Federal Financial Relations (the IGA) provides a foundation for collaboration on policy development and service delivery between the Commonwealth and the States and Territories (the States).
The federal financial framework commenced on 1 January 2009. The payment provisions of the IGA are implemented through the Federal Financial Relations Act 2009 (the Act).
National Specific Purpose Payments (NSPPs)
Under the IGA, the Commonwealth provides NSPPs to the States and Territories as a financial contribution to support State and Territory service delivery in the areas of skills and workforce development, disability and affordable housing.
Part 3 of the Act provides for the Minister, by legislative instrument, to determine the total amounts payable in respect of each NSPP, the manner in which these total amounts are indexed, and the manner in which these amounts are divided between the States and Territories. This determination has been made under these provisions.
This determination specifies the amounts of the Disability NSPP, the Skills and Workforce Development NSPP and the Affordable Housing NSPP for 2015-16. It also determines the manner in which these amounts are indexed, and the manner in which they are divided between the States and Territories.
The Act also requires the Minister have regard to the IGA when making a determination for NSPPs. The indexation methodology used to calculate each NSPP is set out in ‘Schedule D — Payment Arrangements’ to the IGA. This determination is consistent with that schedule.
Advance payments in respect of each NSPP are made throughout the financial year based on estimates of each jurisdiction’s determined entitlement. Any adjustment between the advances paid to a jurisdiction and its determined entitlement is made in the first practicable payment in the subsequent financial year.
Part 3 of the Act and ‘Schedule D — Payment Arrangements’ to the IGA provide that the States and Territories are required to spend each NSPP in the service sector relevant to the payment.
Consultation
The IGA was subject to extensive consultation with the States and was signed by all jurisdictions in December 2008. The IGA is publicly available on the website for the Council for Federal Financial Relations. Consultation with the States and Territories on National SPPs also occurs regularly, principally through meetings between Heads of Treasuries.
Commencement
The Determination commenced on the day it was made.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
This determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview of the determination
In accordance with the Intergovernmental Agreement on Federal Financial Relations and the Federal Financial Relations Act 2009, the Commonwealth provides NSPPs to the States and Territories as a financial contribution to support State and Territory service delivery in the areas of skills and workforce development, disability and affordable housing.
This determination specifies the amounts of the Disability NSPP, the Skills and Workforce Development NSPP and the Affordable Housing NSPP for 2015-16. It also determines the manner in which these amounts are indexed, and the manner in which they are divided between the States and Territories.
Human rights implications
This determination sets out the States’ final entitlements for 2015-16 for the Disability NSPP, the Skills and Workforce Development NSPP and the Affordable Housing NSPP. These payments support the delivery of services in these three sectors and so support the rights of people with disability, rights to education and rights to housing.
Conclusion
This determination is compatible with relevant human rights.