Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022

Administered by Department of the Treasury

Legislation au F2022L01742 In force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Assistant Minister for Competition, Charities and Treasury

Federal Financial Relations Act 2009

Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022

Section 12 of the Federal Financial Relations Act 2009 (the Act) provides that financial assistance is payable in accordance with that section to a State or Territory, for a financial year, for the purpose of expenditure on skills and workforce development. For the purposes of section 12, the Minster may determine the manner in which the total amount of all financial assistance payable to the States, the Australian Capital Territory and the Northern Territory (States and Territories) for a financial year under section 12 is to be indexed (relative to the previous financial year) and the manner in which the total amount is to be divided between the States and Territories.

The purpose of the Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022 (the Determination) is to determine the manner in which the total amount of all financial assistance payable to the States and Territories for a financial year under section 12 of the Act is to be adjusted for the 2021-22 financial year and the manner in which the total amount under section 12 is to be divided between the States and Territories.

Under the Intergovernmental Agreement on Federal Financial Relations (the IGA) and the Act, the Commonwealth provides payments to support the States and Territories delivery of programs, services and reforms with skills and workforce development. The details of the funding arrangements and the conditions the States and Territories need to meet to receive Commonwealth funding are set out in the IGA.

The amounts specified in the Determination to be paid to each State and Territory have been calculated in accordance with the IGA.

Advance payments relating to skills and workforce development are made throughout the financial year based on estimates of each jurisdiction’s anticipated entitlement for that year. Any adjustment between the advances paid to a jurisdiction and the jurisdiction’s determined entitlement is made in the first practicable payment after the Determination is made.

The IGA was subject to extensive consultation with the States and Territories and was signed by all jurisdictions. The IGA is publicly available on the website of the Council on Federal Financial Relations. Ongoing consultation with the States and Territories on federal financial relations occurs regularly.

Details of the Determination are set out in Attachment A.

The Determination is a legislative instrument for the purposes of the Legislation Act 2003.  In accordance with subsections 44(1) and 54(1) of the Legislation Act 2003, the Determination is not subject to disallowance or sunsetting under the Act and the Legislation Act 2003 on the grounds that the instrument is part of an intergovernmental scheme and gives effect to agreements between the Commonwealth and each of the States, the Australian Capital Territory and the Northern Territory.  The instrument’s operation is effectively mechanical in that it simply details financial assistance to be provided to a State or Territory based on that State or Territory having satisfied the necessary agreed criteria.

An Impact Analysis is not required as the Determination is machinery in nature.

The Determination commenced on the day after it was registered on the Federal Register of Legislation.

A statement of Compatibility with Human Rights is at Attachment B.

ATTACHMENT A

Details of the Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022

This Attachment sets out further details of the Determination.

Section 1 – Name

This section specifies the name of the Determination is the Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022.

Section 2 – Commencement

This section prescribes that the Determination commences the day after it is registered on the Federal Register of Legislation.

Section 3 – Authority

This section provides that the Determination is made under the Federal Financial Relations Act 2009.

Section 4 – Definitions

This section provides definitions for the purposes of the Determination.

Section 5 – National specific purpose payments for skills and workforce development for 2021-22

This section sets out the amounts required to be paid by the Commonwealth in respect of the 2021-22 financial year to each State and Territory in accordance with the IGA to support the States and Territories delivery of programs, services and reforms for skills and workforce development.

This section also explains the manner in which the total amount available to paid to the States and Territories has been indexed for 2021-22 (relative to 2020-21) and the manner in which the total amount available has been divided amongst the States and Territories.


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022

This Legislative Instrument 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 Legislative Instrument

The Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022 determines the manner in which the total amount of all financial assistance payable to the States and Territories for a financial year under section 12 of the Act is to be indexed for the 2021-22 financial year and the manner in which the total amount under section 12 is to be divided between the States and Territories.

Section 12 of the Act provides financial assistance to a State or Territory, for a financial year, for the purpose of expenditure on skills and workforce development. 

Human rights implications

This Legislative Instrument engages:

  • the right to education, as referred to in Article 13 of the International Covenant on Economic, Social and Cultural Rights (done at New York on 16 December 1966 ([1976] ATS 5)) (ICESCR), Articles 28 and 29 of the Convention on the Rights of the Child (done at New York on 20 November 1989 ([1991] ATS 4)) (CRC) and Article 24 of the Convention on the Rights of Persons with Disabilities (done at New York on 30 March 2007 ([2008] ATS 12) (CRPD); and
  • the right to work and rights in work, as referred to in Article 6 of the ICESCR and Article 27 of the CRPD.

This Instrument supports the above rights by providing funding to support the States and Territories delivery of programs, services and reforms with respect to skills and workforce development.

Commonwealth funding in support of the States and Territories delivery of programs, services and reforms with respect to skills and workforce development has been increased for 2021-22 in line with the Intergovernmental Agreement on Federal Financial Relations.

Conclusion

This Legislative Instrument is compatible with human rights as it supports the right to education, the right to work and rights in work by providing funding to the States and Territories to deliver programs, services and reforms with respect to skills and workforce development.

Overview

The Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022 was enacted to address the allocation and indexing of financial assistance provided by the Commonwealth to the states and territories for the financial year 2021-22, as stipulated in section 12 of the Federal Financial Relations Act 2009. This legislative instrument aims to provide financial support to facilitate skills and workforce development programs and services. The determination was issued under the authority of the Assistant Minister for Competition, Charities and Treasury and outlines how the total amount of financial assistance payable to the states and territories will be indexed and divided. The policy objective is to ensure that the funding supports the implementation of programs, services, and reforms that align with the Intergovernmental Agreement on Federal Financial Relations. The determination is consistent with human rights by facilitating the right to education and the right to work through financial support for skills and workforce development initiatives.

Scope and Application

The Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022 applies to the States and Territories of Australia, providing them with financial assistance for expenditure on skills and workforce development as per section 12 of the Federal Financial Relations Act 2009. This Determination specifies how the total amount of financial assistance for the 2021-22 financial year is indexed and divided among the States and Territories, in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA). It serves to support the delivery of skills and workforce development programs, services, and reforms by the States and Territories, as agreed upon in the IGA, which was extensively consulted upon and signed by all jurisdictions. The amounts specified in the Determination are calculated in line with the IGA and are subject to adjustment if there is a discrepancy between advance payments and the jurisdiction's determined entitlement. The Determination is not subject to disallowance or sunsetting, as it is part of an intergovernmental scheme that gives effect to agreements between the Commonwealth and the States and Territories. The funding provided by the Commonwealth supports the right to education and the right to work and rights in work, as recognised in international human rights instruments. The Determination is limited in its scope to the financial assistance for skills and workforce development as stipulated in the IGA and does not extend to other areas of funding or intergovernmental agreements. The Determination also does not include a statement of compatibility with human rights as it is considered machinery in nature, however, it is noted that the funding provided supports the right to education and the right to work and rights in work. The Determination does not contain any exclusions or exemptions, and its operation is effectively mechanical, providing financial assistance to the States and Territories based on the criteria set out in the IGA. Subordinate instruments may extend or restrict the application of the Determination, however, this is not specified in the provided text.

Key Provisions

The Federal Financial Relations (National Specific Purpose Payments for 2021-22) Determination 2022 provides the framework for financial assistance to be paid by the Commonwealth to the States and Territories for the 2021-22 financial year, specifically for skills and workforce development. Under section 12 of the Federal Financial Relations Act 2009, financial assistance is payable for the purpose of expenditure on skills and workforce development. The Determination, as outlined in section 5, specifies the amounts to be paid to each jurisdiction and details the indexing and distribution of these funds. This financial assistance is intended to support the delivery of programs, services, and reforms that enhance workforce skills, in accordance with the Intergovernmental Agreement on Federal Financial Relations (IGA). The Act imposes specific obligations on the Commonwealth and the States and Territories. The Commonwealth must ensure that the payments are made in accordance with the IGA and the Determination, which includes providing advance payments throughout the financial year based on estimates of each jurisdiction’s anticipated entitlement. The States and Territories, in turn, must meet the criteria set out in the IGA to be eligible for these payments. This includes ensuring that the funds are used for the specified purpose of skills and workforce development. The Determination is designed to be a straightforward mechanism that details the financial assistance provided based on the satisfaction of these criteria. Breaches of the obligations set out in the Act or the Determination may lead to civil or criminal consequences. While the Determination itself does not specify particular offences, penalties, or consequences, any failure to comply with the requirements of the IGA or misuse of funds could result in legal actions. Such actions could include the withholding of further payments or other financial penalties, depending on the severity of the breach. Given the nature of the Determination as machinery in nature, it is not subject to disallowance or sunsetting under the Legislation Act 2003, thereby ensuring its continued operation as intended. The Determination also ensures compatibility with human rights by supporting the right to education and the right to work. By providing funding for skills and workforce development, it supports the States and Territories in delivering programs that enhance education and employment opportunities, thereby upholding international human rights standards. The Commonwealth’s commitment to increasing funding in line with the IGA for 2021-22 reflects an ongoing effort to support these rights through practical measures. This ensures that the financial assistance provided is not only in compliance with the legal framework but also in alignment with broader human rights obligations.

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Area of Law
Federal Financial Relations
Instrument
Legislative Instrument
Concepts
Commencement Provisions
Reporting & Disclosure Obligations
Financial Assistance

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.