{"id":"C2009A00011","name":"Federal Financial Relations Act 2009","slug":"federal-financial-relations-act-2009","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"11 of 2009","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8106,"registerId":"commonwealth-C2009A00011-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Federal Financial Relations Act 2009.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This Act commences on 1 April 2009.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Object","content":"#### 3 Object\n\n (1) The main object of this Act is to provide ongoing financial support for the delivery of services by the States, through:\n (a) general revenue assistance, including the provision of GST revenue grants, to be used by the States for any purpose; and\n (aa) payments to be spent by the States in accordance with a skills and workforce development agreement; and\n (b) national specific purpose payments, to be spent by the States on certain service delivery sectors; and\n (ba) national health reform payments, to be spent by the States in accordance with the National Health Reform Agreement; and\n (bb) payments relating to:\n (i) housing; and\n (ii) homelessness; and\n (iii) housing affordability matters;\n to be spent by the States in accordance with:\n (iv) a primary housing agreement and a supplementary housing agreement; or\n (v) a designated housing agreement; and\n (c) national partnership payments, to:\n (i) support the delivery by the States of specified outputs or projects; or\n (ii) facilitate reforms by the States; or\n (iii) reward the States for nationally significant reforms.\n (2) Another object of this Act is to provide financial support for the delivery by the States of temporary and targeted relief from high energy bills for households and small businesses.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n In this Act:\n\n> Appropriation Act means an Act appropriating money for expenditure out of the Consolidated Revenue Fund.\n\n> designated housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a designated housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> estimated population of a State has the meaning given by section 7.\n\n> Federation Reform Fund means the Federation Reform Fund established by section 5 of the Federation Reform Fund Act 2008.\n\n> first indexation amount has the meaning given by subsections 8A(2) and (3).\n\n> general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\n> GST has the same meaning as in the GST Act.\n\n> GST Act means the A New Tax System (Goods and Services Tax) Act 1999.\n\n> GST Imposition Acts means the following Acts:\n\n (a) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999;\n (b) the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999;\n (c) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999;\n (d) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005;\n (e) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005;\n (f) the A New Tax System (Goods and Services Tax Imposition (Recipients)—General) Act 2005.\n\n> GST law has the same meaning as in the GST Act.\n\n> GST refund provision means a provision of a Commonwealth law the effect of which is to require the Commonwealth to refund some or all of an amount of GST that has been paid, whether or not the provision also applies in relation to other kinds of tax.\n\n> GST revenue has the meaning given by section 6.\n\n> GST revenue sharing relativity for a State for a payment year has the meaning given by section 8.\n\n> housing affordability matter means a matter that is likely to affect the affordability of housing.\n\n> Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009, as amended from time to time.\n\n> Note: The Intergovernmental Agreement on Federal Financial Relations provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.\n\n> luxury car tax law has the meaning given by section 27‑1 of the A New Tax System (Luxury Car Tax) Act 1999.\n\n> National Health Reform Agreement means the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time.\n\n> payment year means:\n\n (a) the financial year starting on 1 July 2009; and\n (b) each succeeding financial year.\n These are described by a figure referring to 2 years (for example, the 2009‑10 payment year is the payment year starting on 1 July 2009).\n\n> pool top‑up has the meaning given by section 8A.\n\n> primary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a primary housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> second indexation amount has the meaning given by subsections 8A(4) and (5).\n\n> skills and workforce development agreement means:\n\n (a) the National Skills Agreement that was entered into between the Commonwealth and the States and that took effect on 1 January 2024, as amended from time to time; or\n (b) if the agreement referred to in paragraph (a) ceases to have effect—an agreement, as amended from time to time, that:\n (i) is entered into between the Commonwealth and one or more States; and\n (ii) relates to skills or workforce development, or both; and\n (iii) is expressed to be a skills and workforce development agreement for the purposes of this Act; and\n (iv) is entered into before or after the commencement of this paragraph.\n\n> State includes the Australian Capital Territory and the Northern Territory.\n\n> supplementary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and a single State; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) relates to:\n (i) a single financial year; or\n (ii) each of 2 consecutive financial years; or\n (iii) each of 3 consecutive financial years; or\n (iv) each of 4 consecutive financial years; or\n (v) each of 5 consecutive financial years; and\n (d) is expressed to be a supplementary housing agreement for the purposes of this Act; and\n (e) is entered into before or after the commencement of Part 3B.\n\n> temporary energy bill relief agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to the delivery by the State or States of temporary relief from high energy bills for households and small businesses; and\n (c) provides that the State or States must not deliver that relief to a household or small business unless criteria specified in the agreement in relation to the household or small business are met; and\n (d) is expressed to be a temporary energy bill relief agreement for the purposes of this Act; and\n (e) is entered into on or after 9 December 2022.\n\n> wine equalisation tax law has the meaning given by section 33‑1 of the A New Tax System (Wine Equalisation Tax) Act 1999.","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"General revenue assistance","content":"An Act to provide financial assistance to the States, the Australian Capital Territory and the Northern Territory, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Federal Financial Relations Act 2009.\n\n#### 2 Commencement\n\n This Act commences on 1 April 2009.\n\n#### 3 Object\n\n (1) The main object of this Act is to provide ongoing financial support for the delivery of services by the States, through:\n (a) general revenue assistance, including the provision of GST revenue grants, to be used by the States for any purpose; and\n (aa) payments to be spent by the States in accordance with a skills and workforce development agreement; and\n (b) national specific purpose payments, to be spent by the States on certain service delivery sectors; and\n (ba) national health reform payments, to be spent by the States in accordance with the National Health Reform Agreement; and\n (bb) payments relating to:\n (i) housing; and\n (ii) homelessness; and\n (iii) housing affordability matters;\n to be spent by the States in accordance with:\n (iv) a primary housing agreement and a supplementary housing agreement; or\n (v) a designated housing agreement; and\n (c) national partnership payments, to:\n (i) support the delivery by the States of specified outputs or projects; or\n (ii) facilitate reforms by the States; or\n (iii) reward the States for nationally significant reforms.\n (2) Another object of this Act is to provide financial support for the delivery by the States of temporary and targeted relief from high energy bills for households and small businesses.\n\n#### 4 Definitions\n\n In this Act:\n\n> Appropriation Act means an Act appropriating money for expenditure out of the Consolidated Revenue Fund.\n\n> designated housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a designated housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> estimated population of a State has the meaning given by section 7.\n\n> Federation Reform Fund means the Federation Reform Fund established by section 5 of the Federation Reform Fund Act 2008.\n\n> first indexation amount has the meaning given by subsections 8A(2) and (3).\n\n> general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\n> GST has the same meaning as in the GST Act.\n\n> GST Act means the A New Tax System (Goods and Services Tax) Act 1999.\n\n> GST Imposition Acts means the following Acts:\n\n (a) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999;\n (b) the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999;\n (c) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999;\n (d) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005;\n (e) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005;\n (f) the A New Tax System (Goods and Services Tax Imposition (Recipients)—General) Act 2005.\n\n> GST law has the same meaning as in the GST Act.\n\n> GST refund provision means a provision of a Commonwealth law the effect of which is to require the Commonwealth to refund some or all of an amount of GST that has been paid, whether or not the provision also applies in relation to other kinds of tax.\n\n> GST revenue has the meaning given by section 6.\n\n> GST revenue sharing relativity for a State for a payment year has the meaning given by section 8.\n\n> housing affordability matter means a matter that is likely to affect the affordability of housing.\n\n> Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009, as amended from time to time.\n\n> Note: The Intergovernmental Agreement on Federal Financial Relations provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.\n\n> luxury car tax law has the meaning given by section 27‑1 of the A New Tax System (Luxury Car Tax) Act 1999.\n\n> National Health Reform Agreement means the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time.\n\n> payment year means:\n\n (a) the financial year starting on 1 July 2009; and\n (b) each succeeding financial year.\n These are described by a figure referring to 2 years (for example, the 2009‑10 payment year is the payment year starting on 1 July 2009).\n\n> pool top‑up has the meaning given by section 8A.\n\n> primary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a primary housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> second indexation amount has the meaning given by subsections 8A(4) and (5).\n\n> skills and workforce development agreement means:\n\n (a) the National Skills Agreement that was entered into between the Commonwealth and the States and that took effect on 1 January 2024, as amended from time to time; or\n (b) if the agreement referred to in paragraph (a) ceases to have effect—an agreement, as amended from time to time, that:\n (i) is entered into between the Commonwealth and one or more States; and\n (ii) relates to skills or workforce development, or both; and\n (iii) is expressed to be a skills and workforce development agreement for the purposes of this Act; and\n (iv) is entered into before or after the commencement of this paragraph.\n\n> State includes the Australian Capital Territory and the Northern Territory.\n\n> supplementary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and a single State; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) relates to:\n (i) a single financial year; or\n (ii) each of 2 consecutive financial years; or\n (iii) each of 3 consecutive financial years; or\n (iv) each of 4 consecutive financial years; or\n (v) each of 5 consecutive financial years; and\n (d) is expressed to be a supplementary housing agreement for the purposes of this Act; and\n (e) is entered into before or after the commencement of Part 3B.\n\n> temporary energy bill relief agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to the delivery by the State or States of temporary relief from high energy bills for households and small businesses; and\n (c) provides that the State or States must not deliver that relief to a household or small business unless criteria specified in the agreement in relation to the household or small business are met; and\n (d) is expressed to be a temporary energy bill relief agreement for the purposes of this Act; and\n (e) is entered into on or after 9 December 2022.\n\n> wine equalisation tax law has the meaning given by section 33‑1 of the A New Tax System (Wine Equalisation Tax) Act 1999.\n\n## Part 2—General revenue assistance\n\n### Division 1—GST revenue grants\n\n#### 5 GST revenue grants\n\n (1) Subject to this Act, each State is entitled to the payment, by way of financial assistance, for a payment year, of a grant worked out using the formula:\n ![Start formula start fraction Adjusted State population times open bracket GST revenue plus Pool top-up close bracket over Adjusted total population end fraction end formula](image.002.png)\n where:\n\n> adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.\n\n> adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.\n\n> GST revenue means the GST revenue for the payment year (see section 6).\n\n> pool top‑up means the pool top‑up for the payment year (see section 8A).\n\n Additional financial assistance for transitional payment years\n (2) In this section:\n\n> transitional year means the 2021‑22 payment year, the 2022‑23 payment year, the 2023‑24 payment year, the 2024‑25 payment year, the 2025‑26 payment year or the 2026‑27 payment year.\n\n (3) If the sum of:\n (a) the amount of the grant to which a State is entitled under subsection (1) for a transitional year (the base year); and\n (b) the amount of the grant to which the State is entitled under subsection (1) for each transitional year (if any) before the base year; and\n (c) the amount of the grant (if any) to which the State is entitled under this subsection for each transitional year (if any) before the base year;\n is less than the sum of the amounts of the grants to which the State would, in the Minister’s opinion, have been entitled for the base year, and each transitional year (if any) before the base year, under this section if the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Act 2018 had not been enacted, the State is entitled, subject to this Act, to the payment, by way of additional financial assistance for the base year, of a grant equal to the difference.\n (4) The Minister must, in forming an opinion under subsection (3):\n (a) consult with each of the States; and\n (b) have regard to any report of the Commonwealth Grants Commission that the Minister considers relevant.\n\n#### 6 GST revenue\n\n (1) The Minister must, by notifiable instrument, determine the amounts described in subsections (3) and (4) for a payment year.\n (2) The GST revenue for a payment year is the difference between:\n (a) the sum of all the amounts described in subsection (3) and determined for the payment year; and\n (b) the amount described in subsection (4) and determined for the payment year.\n (3) For the purposes of paragraph (2)(a) the amounts are:\n (a) the amount that is the total of the following:\n (i) the GST that was collected;\n (ii) the payments made to the Commissioner of Taxation representing amounts of GST that would have been payable if the Constitution did not prevent tax from being imposed on property of any kind belonging to a State and section 5 of the GST Imposition Acts had not been enacted;\n (iii) the additional GST that would have been collected if the Commonwealth and Commonwealth entities could be made subject to taxation by a Commonwealth law and section 177‑1 of the GST Act made those entities actually liable rather than notionally liable; and\n (b) the amount of general interest charge that was collected to the extent that it is attributable to:\n (i) unpaid GST; or\n (ii) unpaid general interest charge payable in respect of unpaid GST; and\n (c) the amount, determined in a manner agreed by the Commonwealth and all of the States, that represents amounts of voluntary GST payments that should have, but have not, been paid by local government bodies.\n (4) For the purposes of paragraph (2)(b) the amount is the total of the following, so far as each of them is attributable to GST:\n (a) payments under the GST refund provisions;\n (b) what was payable under the GST refund provisions and was (rather than being paid directly under those provisions) allocated, applied or refunded in accordance with Part IIB of the Taxation Administration Act 1953.\n (5) In making determinations for the purposes of this section, the Minister must make such adjustments as are necessary to ensure that any effect that the luxury car tax law or wine equalisation tax law would otherwise have on the amounts of GST, and the amounts attributable to GST, is removed.\n\n#### 7 Determination of population of a State\n\n The estimated population of a State on 31 December in a payment year is the population of the State on that date as determined by the Australian Statistician after that date and before 31 August in the following payment year.\n\n#### 8 GST revenue sharing relativity\n\n (1) The Minister may determine that a factor specified in the determination is the GST revenue sharing relativity for a State for a payment year.\n (2) Before making a determination under subsection (1), the Minister must consult each of the States.\n (2A) A factor determined under subsection (1) for a State for the 2022‑23 payment year or the 2023‑24 payment year must be greater than or equal to 0.7.\n (2B) A factor determined under subsection (1) for a State for the 2024‑25 payment year or a later payment year must be greater than or equal to 0.75.\n (3) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n#### 8A Pool top‑up for a payment year\n\n (1) The pool top‑up for a payment year is worked out using this table:\n\n```html\n

Pool top‑up for a payment year

Item

For this payment year:

The pool top‑up is:

1

the 2020‑21 payment year or an earlier payment year

$0

2

the 2021‑22 payment year

$600 million

3

the 2022‑23 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

4

the 2023‑24 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

5

the 2024‑25 payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year

6

the 2025‑26 payment year or a later payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year; and

(c) the second indexation amount for that payment year

\n```\n\n (2) The first indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (3); and\n (b) if the current year is the 2023‑24 payment year or a later payment year—the first indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (3) The formula for paragraph (2)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2021-22 over GST revenue for 2021-22 end fraction close bracket times $600 million end formula](image.003.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2021‑22 is the GST revenue for the 2021‑22 payment year.\n\n (4) The second indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (5); and\n (b) if the current year is the 2026‑27 payment year or a later payment year—the second indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (5) The formula for paragraph (4)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2024-25 over GST revenue for 2024-25 end fraction close bracket times $250 million end formula](image.004.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2024‑25 is the GST revenue for the 2024‑25 payment year.\n\n### Division 2—Other general revenue assistance\n\n#### 9 General purpose financial assistance\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of general purpose financial assistance to the State.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n## Part 2A—National skills and workforce development payments\n\n#### 12A National skills and workforce development payments\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a skills and workforce development agreement; and\n (b) the financial year is the 2024‑25 financial year or a later financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the skills and workforce development agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the skills and workforce development agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the skills and workforce development agreement.\n\n## Part 3—National specific purpose payments\n\n#### 13 National specific purpose payments for disability services\n\n (1) Financial assistance is payable in accordance with this section to a State, for the financial year starting on 1 July 2008 and for each later financial year, for the purpose of expenditure on disability services.\n (2) The total amount of all financial assistance payable under subsection (1) to the States for a financial year is:\n (a) for the financial year starting on 1 July 2008—the amount determined by the Minister; or\n (b) for the financial year starting on 1 July 2009—$903,686,000; or\n (c) for a later financial year—the total amount under this subsection for the preceding financial year, adjusted in accordance with subsection (4).\n (3) A determination under paragraph (2)(a) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (4) The Minister may, by legislative instrument, determine the manner in which the total amount under paragraph (2)(c) is to be adjusted for a particular financial year. The determination must include a statement of the total amount for that financial year.\n (5) The Minister may, by legislative instrument, determine, for each financial year, the manner in which the total amount under subsection (2) is to be divided between the States.\n (6) Financial assistance is payable to a State under this section on condition that the financial assistance is spent on disability services.\n\n## Part 3A—National health reform payments\n\n#### 15A National health reform payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with the National Health Reform Agreement.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.\n\n## Part 3B—Payments relating to housing, homelessness and housing affordability matters\n\n#### 15B Simplified outline of this Part\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to:\n\n(a) a primary housing agreement; and\n\n(b) a supplementary housing agreement.\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to a designated housing agreement.\n\n#### 15C Payments relating to housing, homelessness and housing affordability matters—primary housing agreement and supplementary housing agreement\n\n Scope\n (1) This section applies to a State in relation to a financial year if the State is a party to:\n (a) a primary housing agreement; and\n (b) a supplementary housing agreement that relates to the financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (5) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a housing strategy for the State that:\n (i) indicates the level of housing supply needed to respond to projected housing demand, and outlines the reforms and initiatives that contribute to meeting this need; and\n (ii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the housing strategy available on a publicly accessible website.\n (6) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a homelessness strategy for the State that:\n (i) addresses the priority homelessness cohorts identified in the primary housing agreement; and\n (ii) includes reforms or initiatives that contribute to a reduction in the incidence of homelessness; and\n (iii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the homelessness strategy available on a publicly accessible website.\n (7) Financial assistance is payable to the State under this section for the financial year on condition that, for each $1 paid to the State under this section for the financial year in relation to homelessness, the State will spend during the financial year, out of its own resources, $1 in relation to homelessness.\n (8) Financial assistance is payable to the State under this section for the financial year on condition that the State will:\n (a) give the Minister such information (if any) relating to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters;\n as is specified in the primary housing agreement or the supplementary housing agreement; and\n (b) do so in the manner, and within the period, ascertained in accordance with the primary housing agreement or the supplementary housing agreement, as the case requires.\n (9) The following are matters for the State:\n (a) the accuracy (or likely accuracy) of the level of housing supply indicated in the housing strategy mentioned in subsection (5);\n (b) the quality or effectiveness (or likely quality or effectiveness) of the reforms and initiatives included in that housing strategy;\n (c) the quality or effectiveness (or likely quality or effectiveness) of the reforms or initiatives included in the homelessness strategy mentioned in subsection (6).\n\n#### 15D Payments relating to housing, homelessness and housing affordability matters—designated housing agreement\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with a designated housing agreement to which the State is a party.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the designated housing agreement.\n (4) Financial assistance payable to a State under this section is subject to such additional terms and conditions (if any) as are set out in the designated housing agreement.\n\n## Part 3C—Temporary energy bill relief\n\n#### 15E Payments relating to temporary energy bill relief\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a temporary energy bill relief agreement; and\n (b) the financial year is the 2022‑23 or 2023‑24 financial year.\n Determination\n (2) The Minister must determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the temporary energy bill relief agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the temporary energy bill relief agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the temporary energy bill relief agreement.\n\n#### 15F Amount of financial assistance\n\n Subject to the temporary energy bill relief agreements, the amount of financial assistance payable under this Part to the States is $1.5 billion.\n\n## Part 4—National partnership payments\n\n#### 16 National partnership payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance to:\n (a) support the delivery by the State of specified outputs or projects; or\n (b) facilitate reforms by the State; or\n (c) reward the State for nationally significant reforms.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n## Part 5—Payment of grants\n\n#### 17 Advance payments for financial year\n\n The Minister may make advances to a State of portions of the amount or amounts to which, it appears to the Minister, the State will be entitled under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n for a financial year.\n\n#### 18 Overpayment or underpayment of grant\n\n (1) If a State has been paid an amount in excess of the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must deduct an amount equal to the excess from any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n (2) If a State has been paid less than the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must add an amount equal to the shortfall to any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n\n#### 19 Minister may fix amounts, and times of payments, of financial assistance\n\n (1) Financial assistance payable to a State under this Act is to be paid in such amounts, and at such times, as the Minister determines in writing.\n (2) A determination made under subsection (1) is not a legislative instrument.\n\n#### 20 Repayment if condition not fulfilled\n\n (1) It is a condition of a payment of financial assistance under this Act to a State that, if the State does not fulfil a condition in respect of the payment, the State will, if the Minister so determines, repay to the Commonwealth the amount stated in the determination.\n (2) The amount stated in the determination under subsection (1) must not be more than the amount of the payment.\n (3) A determination made under subsection (1) is not a legislative instrument.\n (4) If:\n (a) a payment of financial assistance has, during a financial year, been made to a State under this Act; and\n (b) the Minister has determined under subsection (1) that the State must repay an amount in respect of the payment; and\n (c) the State has not repaid the amount;\n the Minister may deduct an amount equal to the amount unpaid from any amount that the State is entitled to receive by way of financial assistance under this Act for a subsequent financial year.\n (5) An amount payable by a State to the Commonwealth under this Act is a debt due by the State to the Commonwealth.\n\n## Part 6—Miscellaneous\n\n#### 21 Minister to have regard to Intergovernmental Agreement and other agreements\n\n In making a determination under this Act, the Minister must have regard to:\n (a) the Intergovernmental Agreement; and\n (aaa) if:\n (i) the determination relates to financial assistance to a State under section 12A; and\n (ii) the State is a party to a skills and workforce development agreement;\n the skills and workforce development agreement; and\n (aa) if the determination relates to financial assistance under section 13 or 15A—the National Health Reform Agreement; and\n (ab) if:\n (i) the determination relates to financial assistance to a State under section 15C; and\n (ii) the State is a party to a primary housing agreement or a supplementary housing agreement;\n the primary housing agreement or the supplementary housing agreement, as the case may be; and\n (ac) if:\n (i) the determination relates to financial assistance to a State under section 15D; and\n (ii) the State is a party to a designated housing agreement;\n the designated housing agreement; and\n (ad) if:\n (i) the determination relates to financial assistance to a State under section 15E; and\n (ii) the State is a party to a temporary energy bill relief agreement;\n the temporary energy bill relief agreement; and\n (b) if the determination relates to financial assistance to one or more States—any other written agreement between the Commonwealth and one or more States that relates to that financial assistance.\n\n#### 22 Appropriation\n\n Payments under Division 1 of Part 2, Part 2A, Part 3, Part 3A, Part 3B, Part 3C or Part 5 are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.\n\n#### 23 Delegation\n\n (1) The Minister may, by writing, delegate any or all of his or her powers under section 17 or 19 to an SES employee, or acting SES employee, in the Department.\n\n> Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.\n\n (2) In exercising powers under a delegation, the delegate must comply with any directions of the Minister.\n\n#### 24 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":5},{"sectionNumber":"Division 1","sectionType":"division","heading":"GST revenue grants","content":"An Act to provide financial assistance to the States, the Australian Capital Territory and the Northern Territory, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Federal Financial Relations Act 2009.\n\n#### 2 Commencement\n\n This Act commences on 1 April 2009.\n\n#### 3 Object\n\n (1) The main object of this Act is to provide ongoing financial support for the delivery of services by the States, through:\n (a) general revenue assistance, including the provision of GST revenue grants, to be used by the States for any purpose; and\n (aa) payments to be spent by the States in accordance with a skills and workforce development agreement; and\n (b) national specific purpose payments, to be spent by the States on certain service delivery sectors; and\n (ba) national health reform payments, to be spent by the States in accordance with the National Health Reform Agreement; and\n (bb) payments relating to:\n (i) housing; and\n (ii) homelessness; and\n (iii) housing affordability matters;\n to be spent by the States in accordance with:\n (iv) a primary housing agreement and a supplementary housing agreement; or\n (v) a designated housing agreement; and\n (c) national partnership payments, to:\n (i) support the delivery by the States of specified outputs or projects; or\n (ii) facilitate reforms by the States; or\n (iii) reward the States for nationally significant reforms.\n (2) Another object of this Act is to provide financial support for the delivery by the States of temporary and targeted relief from high energy bills for households and small businesses.\n\n#### 4 Definitions\n\n In this Act:\n\n> Appropriation Act means an Act appropriating money for expenditure out of the Consolidated Revenue Fund.\n\n> designated housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a designated housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> estimated population of a State has the meaning given by section 7.\n\n> Federation Reform Fund means the Federation Reform Fund established by section 5 of the Federation Reform Fund Act 2008.\n\n> first indexation amount has the meaning given by subsections 8A(2) and (3).\n\n> general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\n> GST has the same meaning as in the GST Act.\n\n> GST Act means the A New Tax System (Goods and Services Tax) Act 1999.\n\n> GST Imposition Acts means the following Acts:\n\n (a) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999;\n (b) the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999;\n (c) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999;\n (d) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005;\n (e) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005;\n (f) the A New Tax System (Goods and Services Tax Imposition (Recipients)—General) Act 2005.\n\n> GST law has the same meaning as in the GST Act.\n\n> GST refund provision means a provision of a Commonwealth law the effect of which is to require the Commonwealth to refund some or all of an amount of GST that has been paid, whether or not the provision also applies in relation to other kinds of tax.\n\n> GST revenue has the meaning given by section 6.\n\n> GST revenue sharing relativity for a State for a payment year has the meaning given by section 8.\n\n> housing affordability matter means a matter that is likely to affect the affordability of housing.\n\n> Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009, as amended from time to time.\n\n> Note: The Intergovernmental Agreement on Federal Financial Relations provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.\n\n> luxury car tax law has the meaning given by section 27‑1 of the A New Tax System (Luxury Car Tax) Act 1999.\n\n> National Health Reform Agreement means the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time.\n\n> payment year means:\n\n (a) the financial year starting on 1 July 2009; and\n (b) each succeeding financial year.\n These are described by a figure referring to 2 years (for example, the 2009‑10 payment year is the payment year starting on 1 July 2009).\n\n> pool top‑up has the meaning given by section 8A.\n\n> primary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a primary housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> second indexation amount has the meaning given by subsections 8A(4) and (5).\n\n> skills and workforce development agreement means:\n\n (a) the National Skills Agreement that was entered into between the Commonwealth and the States and that took effect on 1 January 2024, as amended from time to time; or\n (b) if the agreement referred to in paragraph (a) ceases to have effect—an agreement, as amended from time to time, that:\n (i) is entered into between the Commonwealth and one or more States; and\n (ii) relates to skills or workforce development, or both; and\n (iii) is expressed to be a skills and workforce development agreement for the purposes of this Act; and\n (iv) is entered into before or after the commencement of this paragraph.\n\n> State includes the Australian Capital Territory and the Northern Territory.\n\n> supplementary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and a single State; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) relates to:\n (i) a single financial year; or\n (ii) each of 2 consecutive financial years; or\n (iii) each of 3 consecutive financial years; or\n (iv) each of 4 consecutive financial years; or\n (v) each of 5 consecutive financial years; and\n (d) is expressed to be a supplementary housing agreement for the purposes of this Act; and\n (e) is entered into before or after the commencement of Part 3B.\n\n> temporary energy bill relief agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to the delivery by the State or States of temporary relief from high energy bills for households and small businesses; and\n (c) provides that the State or States must not deliver that relief to a household or small business unless criteria specified in the agreement in relation to the household or small business are met; and\n (d) is expressed to be a temporary energy bill relief agreement for the purposes of this Act; and\n (e) is entered into on or after 9 December 2022.\n\n> wine equalisation tax law has the meaning given by section 33‑1 of the A New Tax System (Wine Equalisation Tax) Act 1999.\n\n## Part 2—General revenue assistance\n\n### Division 1—GST revenue grants\n\n#### 5 GST revenue grants\n\n (1) Subject to this Act, each State is entitled to the payment, by way of financial assistance, for a payment year, of a grant worked out using the formula:\n ![Start formula start fraction Adjusted State population times open bracket GST revenue plus Pool top-up close bracket over Adjusted total population end fraction end formula](image.002.png)\n where:\n\n> adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.\n\n> adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.\n\n> GST revenue means the GST revenue for the payment year (see section 6).\n\n> pool top‑up means the pool top‑up for the payment year (see section 8A).\n\n Additional financial assistance for transitional payment years\n (2) In this section:\n\n> transitional year means the 2021‑22 payment year, the 2022‑23 payment year, the 2023‑24 payment year, the 2024‑25 payment year, the 2025‑26 payment year or the 2026‑27 payment year.\n\n (3) If the sum of:\n (a) the amount of the grant to which a State is entitled under subsection (1) for a transitional year (the base year); and\n (b) the amount of the grant to which the State is entitled under subsection (1) for each transitional year (if any) before the base year; and\n (c) the amount of the grant (if any) to which the State is entitled under this subsection for each transitional year (if any) before the base year;\n is less than the sum of the amounts of the grants to which the State would, in the Minister’s opinion, have been entitled for the base year, and each transitional year (if any) before the base year, under this section if the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Act 2018 had not been enacted, the State is entitled, subject to this Act, to the payment, by way of additional financial assistance for the base year, of a grant equal to the difference.\n (4) The Minister must, in forming an opinion under subsection (3):\n (a) consult with each of the States; and\n (b) have regard to any report of the Commonwealth Grants Commission that the Minister considers relevant.\n\n#### 6 GST revenue\n\n (1) The Minister must, by notifiable instrument, determine the amounts described in subsections (3) and (4) for a payment year.\n (2) The GST revenue for a payment year is the difference between:\n (a) the sum of all the amounts described in subsection (3) and determined for the payment year; and\n (b) the amount described in subsection (4) and determined for the payment year.\n (3) For the purposes of paragraph (2)(a) the amounts are:\n (a) the amount that is the total of the following:\n (i) the GST that was collected;\n (ii) the payments made to the Commissioner of Taxation representing amounts of GST that would have been payable if the Constitution did not prevent tax from being imposed on property of any kind belonging to a State and section 5 of the GST Imposition Acts had not been enacted;\n (iii) the additional GST that would have been collected if the Commonwealth and Commonwealth entities could be made subject to taxation by a Commonwealth law and section 177‑1 of the GST Act made those entities actually liable rather than notionally liable; and\n (b) the amount of general interest charge that was collected to the extent that it is attributable to:\n (i) unpaid GST; or\n (ii) unpaid general interest charge payable in respect of unpaid GST; and\n (c) the amount, determined in a manner agreed by the Commonwealth and all of the States, that represents amounts of voluntary GST payments that should have, but have not, been paid by local government bodies.\n (4) For the purposes of paragraph (2)(b) the amount is the total of the following, so far as each of them is attributable to GST:\n (a) payments under the GST refund provisions;\n (b) what was payable under the GST refund provisions and was (rather than being paid directly under those provisions) allocated, applied or refunded in accordance with Part IIB of the Taxation Administration Act 1953.\n (5) In making determinations for the purposes of this section, the Minister must make such adjustments as are necessary to ensure that any effect that the luxury car tax law or wine equalisation tax law would otherwise have on the amounts of GST, and the amounts attributable to GST, is removed.\n\n#### 7 Determination of population of a State\n\n The estimated population of a State on 31 December in a payment year is the population of the State on that date as determined by the Australian Statistician after that date and before 31 August in the following payment year.\n\n#### 8 GST revenue sharing relativity\n\n (1) The Minister may determine that a factor specified in the determination is the GST revenue sharing relativity for a State for a payment year.\n (2) Before making a determination under subsection (1), the Minister must consult each of the States.\n (2A) A factor determined under subsection (1) for a State for the 2022‑23 payment year or the 2023‑24 payment year must be greater than or equal to 0.7.\n (2B) A factor determined under subsection (1) for a State for the 2024‑25 payment year or a later payment year must be greater than or equal to 0.75.\n (3) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n#### 8A Pool top‑up for a payment year\n\n (1) The pool top‑up for a payment year is worked out using this table:\n\n```html\n

Pool top‑up for a payment year

Item

For this payment year:

The pool top‑up is:

1

the 2020‑21 payment year or an earlier payment year

$0

2

the 2021‑22 payment year

$600 million

3

the 2022‑23 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

4

the 2023‑24 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

5

the 2024‑25 payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year

6

the 2025‑26 payment year or a later payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year; and

(c) the second indexation amount for that payment year

\n```\n\n (2) The first indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (3); and\n (b) if the current year is the 2023‑24 payment year or a later payment year—the first indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (3) The formula for paragraph (2)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2021-22 over GST revenue for 2021-22 end fraction close bracket times $600 million end formula](image.003.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2021‑22 is the GST revenue for the 2021‑22 payment year.\n\n (4) The second indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (5); and\n (b) if the current year is the 2026‑27 payment year or a later payment year—the second indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (5) The formula for paragraph (4)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2024-25 over GST revenue for 2024-25 end fraction close bracket times $250 million end formula](image.004.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2024‑25 is the GST revenue for the 2024‑25 payment year.\n\n### Division 2—Other general revenue assistance\n\n#### 9 General purpose financial assistance\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of general purpose financial assistance to the State.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n## Part 2A—National skills and workforce development payments\n\n#### 12A National skills and workforce development payments\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a skills and workforce development agreement; and\n (b) the financial year is the 2024‑25 financial year or a later financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the skills and workforce development agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the skills and workforce development agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the skills and workforce development agreement.\n\n## Part 3—National specific purpose payments\n\n#### 13 National specific purpose payments for disability services\n\n (1) Financial assistance is payable in accordance with this section to a State, for the financial year starting on 1 July 2008 and for each later financial year, for the purpose of expenditure on disability services.\n (2) The total amount of all financial assistance payable under subsection (1) to the States for a financial year is:\n (a) for the financial year starting on 1 July 2008—the amount determined by the Minister; or\n (b) for the financial year starting on 1 July 2009—$903,686,000; or\n (c) for a later financial year—the total amount under this subsection for the preceding financial year, adjusted in accordance with subsection (4).\n (3) A determination under paragraph (2)(a) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (4) The Minister may, by legislative instrument, determine the manner in which the total amount under paragraph (2)(c) is to be adjusted for a particular financial year. The determination must include a statement of the total amount for that financial year.\n (5) The Minister may, by legislative instrument, determine, for each financial year, the manner in which the total amount under subsection (2) is to be divided between the States.\n (6) Financial assistance is payable to a State under this section on condition that the financial assistance is spent on disability services.\n\n## Part 3A—National health reform payments\n\n#### 15A National health reform payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with the National Health Reform Agreement.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.\n\n## Part 3B—Payments relating to housing, homelessness and housing affordability matters\n\n#### 15B Simplified outline of this Part\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to:\n\n(a) a primary housing agreement; and\n\n(b) a supplementary housing agreement.\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to a designated housing agreement.\n\n#### 15C Payments relating to housing, homelessness and housing affordability matters—primary housing agreement and supplementary housing agreement\n\n Scope\n (1) This section applies to a State in relation to a financial year if the State is a party to:\n (a) a primary housing agreement; and\n (b) a supplementary housing agreement that relates to the financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (5) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a housing strategy for the State that:\n (i) indicates the level of housing supply needed to respond to projected housing demand, and outlines the reforms and initiatives that contribute to meeting this need; and\n (ii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the housing strategy available on a publicly accessible website.\n (6) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a homelessness strategy for the State that:\n (i) addresses the priority homelessness cohorts identified in the primary housing agreement; and\n (ii) includes reforms or initiatives that contribute to a reduction in the incidence of homelessness; and\n (iii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the homelessness strategy available on a publicly accessible website.\n (7) Financial assistance is payable to the State under this section for the financial year on condition that, for each $1 paid to the State under this section for the financial year in relation to homelessness, the State will spend during the financial year, out of its own resources, $1 in relation to homelessness.\n (8) Financial assistance is payable to the State under this section for the financial year on condition that the State will:\n (a) give the Minister such information (if any) relating to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters;\n as is specified in the primary housing agreement or the supplementary housing agreement; and\n (b) do so in the manner, and within the period, ascertained in accordance with the primary housing agreement or the supplementary housing agreement, as the case requires.\n (9) The following are matters for the State:\n (a) the accuracy (or likely accuracy) of the level of housing supply indicated in the housing strategy mentioned in subsection (5);\n (b) the quality or effectiveness (or likely quality or effectiveness) of the reforms and initiatives included in that housing strategy;\n (c) the quality or effectiveness (or likely quality or effectiveness) of the reforms or initiatives included in the homelessness strategy mentioned in subsection (6).\n\n#### 15D Payments relating to housing, homelessness and housing affordability matters—designated housing agreement\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with a designated housing agreement to which the State is a party.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the designated housing agreement.\n (4) Financial assistance payable to a State under this section is subject to such additional terms and conditions (if any) as are set out in the designated housing agreement.\n\n## Part 3C—Temporary energy bill relief\n\n#### 15E Payments relating to temporary energy bill relief\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a temporary energy bill relief agreement; and\n (b) the financial year is the 2022‑23 or 2023‑24 financial year.\n Determination\n (2) The Minister must determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the temporary energy bill relief agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the temporary energy bill relief agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the temporary energy bill relief agreement.\n\n#### 15F Amount of financial assistance\n\n Subject to the temporary energy bill relief agreements, the amount of financial assistance payable under this Part to the States is $1.5 billion.\n\n## Part 4—National partnership payments\n\n#### 16 National partnership payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance to:\n (a) support the delivery by the State of specified outputs or projects; or\n (b) facilitate reforms by the State; or\n (c) reward the State for nationally significant reforms.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n## Part 5—Payment of grants\n\n#### 17 Advance payments for financial year\n\n The Minister may make advances to a State of portions of the amount or amounts to which, it appears to the Minister, the State will be entitled under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n for a financial year.\n\n#### 18 Overpayment or underpayment of grant\n\n (1) If a State has been paid an amount in excess of the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must deduct an amount equal to the excess from any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n (2) If a State has been paid less than the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must add an amount equal to the shortfall to any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n\n#### 19 Minister may fix amounts, and times of payments, of financial assistance\n\n (1) Financial assistance payable to a State under this Act is to be paid in such amounts, and at such times, as the Minister determines in writing.\n (2) A determination made under subsection (1) is not a legislative instrument.\n\n#### 20 Repayment if condition not fulfilled\n\n (1) It is a condition of a payment of financial assistance under this Act to a State that, if the State does not fulfil a condition in respect of the payment, the State will, if the Minister so determines, repay to the Commonwealth the amount stated in the determination.\n (2) The amount stated in the determination under subsection (1) must not be more than the amount of the payment.\n (3) A determination made under subsection (1) is not a legislative instrument.\n (4) If:\n (a) a payment of financial assistance has, during a financial year, been made to a State under this Act; and\n (b) the Minister has determined under subsection (1) that the State must repay an amount in respect of the payment; and\n (c) the State has not repaid the amount;\n the Minister may deduct an amount equal to the amount unpaid from any amount that the State is entitled to receive by way of financial assistance under this Act for a subsequent financial year.\n (5) An amount payable by a State to the Commonwealth under this Act is a debt due by the State to the Commonwealth.\n\n## Part 6—Miscellaneous\n\n#### 21 Minister to have regard to Intergovernmental Agreement and other agreements\n\n In making a determination under this Act, the Minister must have regard to:\n (a) the Intergovernmental Agreement; and\n (aaa) if:\n (i) the determination relates to financial assistance to a State under section 12A; and\n (ii) the State is a party to a skills and workforce development agreement;\n the skills and workforce development agreement; and\n (aa) if the determination relates to financial assistance under section 13 or 15A—the National Health Reform Agreement; and\n (ab) if:\n (i) the determination relates to financial assistance to a State under section 15C; and\n (ii) the State is a party to a primary housing agreement or a supplementary housing agreement;\n the primary housing agreement or the supplementary housing agreement, as the case may be; and\n (ac) if:\n (i) the determination relates to financial assistance to a State under section 15D; and\n (ii) the State is a party to a designated housing agreement;\n the designated housing agreement; and\n (ad) if:\n (i) the determination relates to financial assistance to a State under section 15E; and\n (ii) the State is a party to a temporary energy bill relief agreement;\n the temporary energy bill relief agreement; and\n (b) if the determination relates to financial assistance to one or more States—any other written agreement between the Commonwealth and one or more States that relates to that financial assistance.\n\n#### 22 Appropriation\n\n Payments under Division 1 of Part 2, Part 2A, Part 3, Part 3A, Part 3B, Part 3C or Part 5 are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.\n\n#### 23 Delegation\n\n (1) The Minister may, by writing, delegate any or all of his or her powers under section 17 or 19 to an SES employee, or acting SES employee, in the Department.\n\n> Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.\n\n (2) In exercising powers under a delegation, the delegate must comply with any directions of the Minister.\n\n#### 24 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":6},{"sectionNumber":"5","sectionType":"section","heading":"GST revenue grants","content":"#### 5 GST revenue grants\n\n (1) Subject to this Act, each State is entitled to the payment, by way of financial assistance, for a payment year, of a grant worked out using the formula:\n ![Start formula start fraction Adjusted State population times open bracket GST revenue plus Pool top-up close bracket over Adjusted total population end fraction end formula](image.002.png)\n where:\n\n> adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.\n\n> adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.\n\n> GST revenue means the GST revenue for the payment year (see section 6).\n\n> pool top‑up means the pool top‑up for the payment year (see section 8A).\n\n Additional financial assistance for transitional payment years\n (2) In this section:\n\n> transitional year means the 2021‑22 payment year, the 2022‑23 payment year, the 2023‑24 payment year, the 2024‑25 payment year, the 2025‑26 payment year or the 2026‑27 payment year.\n\n (3) If the sum of:\n (a) the amount of the grant to which a State is entitled under subsection (1) for a transitional year (the base year); and\n (b) the amount of the grant to which the State is entitled under subsection (1) for each transitional year (if any) before the base year; and\n (c) the amount of the grant (if any) to which the State is entitled under this subsection for each transitional year (if any) before the base year;\n is less than the sum of the amounts of the grants to which the State would, in the Minister’s opinion, have been entitled for the base year, and each transitional year (if any) before the base year, under this section if the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Act 2018 had not been enacted, the State is entitled, subject to this Act, to the payment, by way of additional financial assistance for the base year, of a grant equal to the difference.\n (4) The Minister must, in forming an opinion under subsection (3):\n (a) consult with each of the States; and\n (b) have regard to any report of the Commonwealth Grants Commission that the Minister considers relevant.","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":"GST revenue","content":"#### 6 GST revenue\n\n (1) The Minister must, by notifiable instrument, determine the amounts described in subsections (3) and (4) for a payment year.\n (2) The GST revenue for a payment year is the difference between:\n (a) the sum of all the amounts described in subsection (3) and determined for the payment year; and\n (b) the amount described in subsection (4) and determined for the payment year.\n (3) For the purposes of paragraph (2)(a) the amounts are:\n (a) the amount that is the total of the following:\n (i) the GST that was collected;\n (ii) the payments made to the Commissioner of Taxation representing amounts of GST that would have been payable if the Constitution did not prevent tax from being imposed on property of any kind belonging to a State and section 5 of the GST Imposition Acts had not been enacted;\n (iii) the additional GST that would have been collected if the Commonwealth and Commonwealth entities could be made subject to taxation by a Commonwealth law and section 177‑1 of the GST Act made those entities actually liable rather than notionally liable; and\n (b) the amount of general interest charge that was collected to the extent that it is attributable to:\n (i) unpaid GST; or\n (ii) unpaid general interest charge payable in respect of unpaid GST; and\n (c) the amount, determined in a manner agreed by the Commonwealth and all of the States, that represents amounts of voluntary GST payments that should have, but have not, been paid by local government bodies.\n (4) For the purposes of paragraph (2)(b) the amount is the total of the following, so far as each of them is attributable to GST:\n (a) payments under the GST refund provisions;\n (b) what was payable under the GST refund provisions and was (rather than being paid directly under those provisions) allocated, applied or refunded in accordance with Part IIB of the Taxation Administration Act 1953.\n (5) In making determinations for the purposes of this section, the Minister must make such adjustments as are necessary to ensure that any effect that the luxury car tax law or wine equalisation tax law would otherwise have on the amounts of GST, and the amounts attributable to GST, is removed.","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Determination of population of a State","content":"#### 7 Determination of population of a State\n\n The estimated population of a State on 31 December in a payment year is the population of the State on that date as determined by the Australian Statistician after that date and before 31 August in the following payment year.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"GST revenue sharing relativity","content":"#### 8 GST revenue sharing relativity\n\n (1) The Minister may determine that a factor specified in the determination is the GST revenue sharing relativity for a State for a payment year.\n (2) Before making a determination under subsection (1), the Minister must consult each of the States.\n (2A) A factor determined under subsection (1) for a State for the 2022‑23 payment year or the 2023‑24 payment year must be greater than or equal to 0.7.\n (2B) A factor determined under subsection (1) for a State for the 2024‑25 payment year or a later payment year must be greater than or equal to 0.75.\n (3) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.","sortOrder":10},{"sectionNumber":"8A","sectionType":"section","heading":"Pool top‑up for a payment year","content":"#### 8A Pool top‑up for a payment year\n\n (1) The pool top‑up for a payment year is worked out using this table:\n\n```html\n

Pool top‑up for a payment year

Item

For this payment year:

The pool top‑up is:

1

the 2020‑21 payment year or an earlier payment year

$0

2

the 2021‑22 payment year

$600 million

3

the 2022‑23 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

4

the 2023‑24 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

5

the 2024‑25 payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year

6

the 2025‑26 payment year or a later payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year; and

(c) the second indexation amount for that payment year

\n```\n\n (2) The first indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (3); and\n (b) if the current year is the 2023‑24 payment year or a later payment year—the first indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (3) The formula for paragraph (2)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2021-22 over GST revenue for 2021-22 end fraction close bracket times $600 million end formula](image.003.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2021‑22 is the GST revenue for the 2021‑22 payment year.\n\n (4) The second indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (5); and\n (b) if the current year is the 2026‑27 payment year or a later payment year—the second indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (5) The formula for paragraph (4)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2024-25 over GST revenue for 2024-25 end fraction close bracket times $250 million end formula](image.004.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2024‑25 is the GST revenue for the 2024‑25 payment year.","sortOrder":11},{"sectionNumber":"Division 2","sectionType":"division","heading":"Other general revenue assistance","content":"An Act to provide financial assistance to the States, the Australian Capital Territory and the Northern Territory, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Federal Financial Relations Act 2009.\n\n#### 2 Commencement\n\n This Act commences on 1 April 2009.\n\n#### 3 Object\n\n (1) The main object of this Act is to provide ongoing financial support for the delivery of services by the States, through:\n (a) general revenue assistance, including the provision of GST revenue grants, to be used by the States for any purpose; and\n (aa) payments to be spent by the States in accordance with a skills and workforce development agreement; and\n (b) national specific purpose payments, to be spent by the States on certain service delivery sectors; and\n (ba) national health reform payments, to be spent by the States in accordance with the National Health Reform Agreement; and\n (bb) payments relating to:\n (i) housing; and\n (ii) homelessness; and\n (iii) housing affordability matters;\n to be spent by the States in accordance with:\n (iv) a primary housing agreement and a supplementary housing agreement; or\n (v) a designated housing agreement; and\n (c) national partnership payments, to:\n (i) support the delivery by the States of specified outputs or projects; or\n (ii) facilitate reforms by the States; or\n (iii) reward the States for nationally significant reforms.\n (2) Another object of this Act is to provide financial support for the delivery by the States of temporary and targeted relief from high energy bills for households and small businesses.\n\n#### 4 Definitions\n\n In this Act:\n\n> Appropriation Act means an Act appropriating money for expenditure out of the Consolidated Revenue Fund.\n\n> designated housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a designated housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> estimated population of a State has the meaning given by section 7.\n\n> Federation Reform Fund means the Federation Reform Fund established by section 5 of the Federation Reform Fund Act 2008.\n\n> first indexation amount has the meaning given by subsections 8A(2) and (3).\n\n> general interest charge means the charge worked out under Part IIA of the Taxation Administration Act 1953.\n\n> GST has the same meaning as in the GST Act.\n\n> GST Act means the A New Tax System (Goods and Services Tax) Act 1999.\n\n> GST Imposition Acts means the following Acts:\n\n (a) the A New Tax System (Goods and Services Tax Imposition—Customs) Act 1999;\n (b) the A New Tax System (Goods and Services Tax Imposition—Excise) Act 1999;\n (c) the A New Tax System (Goods and Services Tax Imposition—General) Act 1999;\n (d) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Customs) Act 2005;\n (e) the A New Tax System (Goods and Services Tax Imposition (Recipients)—Excise) Act 2005;\n (f) the A New Tax System (Goods and Services Tax Imposition (Recipients)—General) Act 2005.\n\n> GST law has the same meaning as in the GST Act.\n\n> GST refund provision means a provision of a Commonwealth law the effect of which is to require the Commonwealth to refund some or all of an amount of GST that has been paid, whether or not the provision also applies in relation to other kinds of tax.\n\n> GST revenue has the meaning given by section 6.\n\n> GST revenue sharing relativity for a State for a payment year has the meaning given by section 8.\n\n> housing affordability matter means a matter that is likely to affect the affordability of housing.\n\n> Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009, as amended from time to time.\n\n> Note: The Intergovernmental Agreement on Federal Financial Relations provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.\n\n> luxury car tax law has the meaning given by section 27‑1 of the A New Tax System (Luxury Car Tax) Act 1999.\n\n> National Health Reform Agreement means the National Health Reform Agreement agreed to by the Council of Australian Governments on 2 August 2011, as amended from time to time.\n\n> payment year means:\n\n (a) the financial year starting on 1 July 2009; and\n (b) each succeeding financial year.\n These are described by a figure referring to 2 years (for example, the 2009‑10 payment year is the payment year starting on 1 July 2009).\n\n> pool top‑up has the meaning given by section 8A.\n\n> primary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) is expressed to be a primary housing agreement for the purposes of this Act; and\n (d) is entered into before or after the commencement of Part 3B.\n\n> second indexation amount has the meaning given by subsections 8A(4) and (5).\n\n> skills and workforce development agreement means:\n\n (a) the National Skills Agreement that was entered into between the Commonwealth and the States and that took effect on 1 January 2024, as amended from time to time; or\n (b) if the agreement referred to in paragraph (a) ceases to have effect—an agreement, as amended from time to time, that:\n (i) is entered into between the Commonwealth and one or more States; and\n (ii) relates to skills or workforce development, or both; and\n (iii) is expressed to be a skills and workforce development agreement for the purposes of this Act; and\n (iv) is entered into before or after the commencement of this paragraph.\n\n> State includes the Australian Capital Territory and the Northern Territory.\n\n> supplementary housing agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and a single State; and\n (b) relates to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters; and\n (c) relates to:\n (i) a single financial year; or\n (ii) each of 2 consecutive financial years; or\n (iii) each of 3 consecutive financial years; or\n (iv) each of 4 consecutive financial years; or\n (v) each of 5 consecutive financial years; and\n (d) is expressed to be a supplementary housing agreement for the purposes of this Act; and\n (e) is entered into before or after the commencement of Part 3B.\n\n> temporary energy bill relief agreement means an agreement that:\n\n (a) is entered into between the Commonwealth and one or more States; and\n (b) relates to the delivery by the State or States of temporary relief from high energy bills for households and small businesses; and\n (c) provides that the State or States must not deliver that relief to a household or small business unless criteria specified in the agreement in relation to the household or small business are met; and\n (d) is expressed to be a temporary energy bill relief agreement for the purposes of this Act; and\n (e) is entered into on or after 9 December 2022.\n\n> wine equalisation tax law has the meaning given by section 33‑1 of the A New Tax System (Wine Equalisation Tax) Act 1999.\n\n## Part 2—General revenue assistance\n\n### Division 1—GST revenue grants\n\n#### 5 GST revenue grants\n\n (1) Subject to this Act, each State is entitled to the payment, by way of financial assistance, for a payment year, of a grant worked out using the formula:\n ![Start formula start fraction Adjusted State population times open bracket GST revenue plus Pool top-up close bracket over Adjusted total population end fraction end formula](image.002.png)\n where:\n\n> adjusted State population means the estimated population of the State on 31 December in the payment year (see section 7) multiplied by the GST revenue sharing relativity (see section 8) for the State for that year.\n\n> adjusted total population means the sum of the adjusted State populations of all of the States for the payment year.\n\n> GST revenue means the GST revenue for the payment year (see section 6).\n\n> pool top‑up means the pool top‑up for the payment year (see section 8A).\n\n Additional financial assistance for transitional payment years\n (2) In this section:\n\n> transitional year means the 2021‑22 payment year, the 2022‑23 payment year, the 2023‑24 payment year, the 2024‑25 payment year, the 2025‑26 payment year or the 2026‑27 payment year.\n\n (3) If the sum of:\n (a) the amount of the grant to which a State is entitled under subsection (1) for a transitional year (the base year); and\n (b) the amount of the grant to which the State is entitled under subsection (1) for each transitional year (if any) before the base year; and\n (c) the amount of the grant (if any) to which the State is entitled under this subsection for each transitional year (if any) before the base year;\n is less than the sum of the amounts of the grants to which the State would, in the Minister’s opinion, have been entitled for the base year, and each transitional year (if any) before the base year, under this section if the Treasury Laws Amendment (Making Sure Every State and Territory Gets Their Fair Share of GST) Act 2018 had not been enacted, the State is entitled, subject to this Act, to the payment, by way of additional financial assistance for the base year, of a grant equal to the difference.\n (4) The Minister must, in forming an opinion under subsection (3):\n (a) consult with each of the States; and\n (b) have regard to any report of the Commonwealth Grants Commission that the Minister considers relevant.\n\n#### 6 GST revenue\n\n (1) The Minister must, by notifiable instrument, determine the amounts described in subsections (3) and (4) for a payment year.\n (2) The GST revenue for a payment year is the difference between:\n (a) the sum of all the amounts described in subsection (3) and determined for the payment year; and\n (b) the amount described in subsection (4) and determined for the payment year.\n (3) For the purposes of paragraph (2)(a) the amounts are:\n (a) the amount that is the total of the following:\n (i) the GST that was collected;\n (ii) the payments made to the Commissioner of Taxation representing amounts of GST that would have been payable if the Constitution did not prevent tax from being imposed on property of any kind belonging to a State and section 5 of the GST Imposition Acts had not been enacted;\n (iii) the additional GST that would have been collected if the Commonwealth and Commonwealth entities could be made subject to taxation by a Commonwealth law and section 177‑1 of the GST Act made those entities actually liable rather than notionally liable; and\n (b) the amount of general interest charge that was collected to the extent that it is attributable to:\n (i) unpaid GST; or\n (ii) unpaid general interest charge payable in respect of unpaid GST; and\n (c) the amount, determined in a manner agreed by the Commonwealth and all of the States, that represents amounts of voluntary GST payments that should have, but have not, been paid by local government bodies.\n (4) For the purposes of paragraph (2)(b) the amount is the total of the following, so far as each of them is attributable to GST:\n (a) payments under the GST refund provisions;\n (b) what was payable under the GST refund provisions and was (rather than being paid directly under those provisions) allocated, applied or refunded in accordance with Part IIB of the Taxation Administration Act 1953.\n (5) In making determinations for the purposes of this section, the Minister must make such adjustments as are necessary to ensure that any effect that the luxury car tax law or wine equalisation tax law would otherwise have on the amounts of GST, and the amounts attributable to GST, is removed.\n\n#### 7 Determination of population of a State\n\n The estimated population of a State on 31 December in a payment year is the population of the State on that date as determined by the Australian Statistician after that date and before 31 August in the following payment year.\n\n#### 8 GST revenue sharing relativity\n\n (1) The Minister may determine that a factor specified in the determination is the GST revenue sharing relativity for a State for a payment year.\n (2) Before making a determination under subsection (1), the Minister must consult each of the States.\n (2A) A factor determined under subsection (1) for a State for the 2022‑23 payment year or the 2023‑24 payment year must be greater than or equal to 0.7.\n (2B) A factor determined under subsection (1) for a State for the 2024‑25 payment year or a later payment year must be greater than or equal to 0.75.\n (3) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n#### 8A Pool top‑up for a payment year\n\n (1) The pool top‑up for a payment year is worked out using this table:\n\n```html\n

Pool top‑up for a payment year

Item

For this payment year:

The pool top‑up is:

1

the 2020‑21 payment year or an earlier payment year

$0

2

the 2021‑22 payment year

$600 million

3

the 2022‑23 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

4

the 2023‑24 payment year

the sum of:

(a) $600 million; and

(b) the first indexation amount for that payment year

5

the 2024‑25 payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year

6

the 2025‑26 payment year or a later payment year

the sum of:

(a) $850 million; and

(b) the first indexation amount for that payment year; and

(c) the second indexation amount for that payment year

\n```\n\n (2) The first indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (3); and\n (b) if the current year is the 2023‑24 payment year or a later payment year—the first indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (3) The formula for paragraph (2)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2021-22 over GST revenue for 2021-22 end fraction close bracket times $600 million end formula](image.003.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2021‑22 is the GST revenue for the 2021‑22 payment year.\n\n (4) The second indexation amount for a payment year (the current year) is the greater of:\n (a) the amount worked out using the formula in subsection (5); and\n (b) if the current year is the 2026‑27 payment year or a later payment year—the second indexation amount for the last payment year before the current year; and\n (c) otherwise—$0.\n (5) The formula for paragraph (4)(a) is:\n ![Start formula open bracket start fraction GST revenue for current year minus GST revenue for 2024-25 over GST revenue for 2024-25 end fraction close bracket times $250 million end formula](image.004.png)\n where:\n\n> GST revenue for current year is the GST revenue for the current year.\n\n> GST revenue for 2024‑25 is the GST revenue for the 2024‑25 payment year.\n\n### Division 2—Other general revenue assistance\n\n#### 9 General purpose financial assistance\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of general purpose financial assistance to the State.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n## Part 2A—National skills and workforce development payments\n\n#### 12A National skills and workforce development payments\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a skills and workforce development agreement; and\n (b) the financial year is the 2024‑25 financial year or a later financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the skills and workforce development agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the skills and workforce development agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the skills and workforce development agreement.\n\n## Part 3—National specific purpose payments\n\n#### 13 National specific purpose payments for disability services\n\n (1) Financial assistance is payable in accordance with this section to a State, for the financial year starting on 1 July 2008 and for each later financial year, for the purpose of expenditure on disability services.\n (2) The total amount of all financial assistance payable under subsection (1) to the States for a financial year is:\n (a) for the financial year starting on 1 July 2008—the amount determined by the Minister; or\n (b) for the financial year starting on 1 July 2009—$903,686,000; or\n (c) for a later financial year—the total amount under this subsection for the preceding financial year, adjusted in accordance with subsection (4).\n (3) A determination under paragraph (2)(a) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (4) The Minister may, by legislative instrument, determine the manner in which the total amount under paragraph (2)(c) is to be adjusted for a particular financial year. The determination must include a statement of the total amount for that financial year.\n (5) The Minister may, by legislative instrument, determine, for each financial year, the manner in which the total amount under subsection (2) is to be divided between the States.\n (6) Financial assistance is payable to a State under this section on condition that the financial assistance is spent on disability services.\n\n## Part 3A—National health reform payments\n\n#### 15A National health reform payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with the National Health Reform Agreement.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.\n\n## Part 3B—Payments relating to housing, homelessness and housing affordability matters\n\n#### 15B Simplified outline of this Part\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to:\n\n(a) a primary housing agreement; and\n\n(b) a supplementary housing agreement.\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to a designated housing agreement.\n\n#### 15C Payments relating to housing, homelessness and housing affordability matters—primary housing agreement and supplementary housing agreement\n\n Scope\n (1) This section applies to a State in relation to a financial year if the State is a party to:\n (a) a primary housing agreement; and\n (b) a supplementary housing agreement that relates to the financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (5) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a housing strategy for the State that:\n (i) indicates the level of housing supply needed to respond to projected housing demand, and outlines the reforms and initiatives that contribute to meeting this need; and\n (ii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the housing strategy available on a publicly accessible website.\n (6) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a homelessness strategy for the State that:\n (i) addresses the priority homelessness cohorts identified in the primary housing agreement; and\n (ii) includes reforms or initiatives that contribute to a reduction in the incidence of homelessness; and\n (iii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the homelessness strategy available on a publicly accessible website.\n (7) Financial assistance is payable to the State under this section for the financial year on condition that, for each $1 paid to the State under this section for the financial year in relation to homelessness, the State will spend during the financial year, out of its own resources, $1 in relation to homelessness.\n (8) Financial assistance is payable to the State under this section for the financial year on condition that the State will:\n (a) give the Minister such information (if any) relating to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters;\n as is specified in the primary housing agreement or the supplementary housing agreement; and\n (b) do so in the manner, and within the period, ascertained in accordance with the primary housing agreement or the supplementary housing agreement, as the case requires.\n (9) The following are matters for the State:\n (a) the accuracy (or likely accuracy) of the level of housing supply indicated in the housing strategy mentioned in subsection (5);\n (b) the quality or effectiveness (or likely quality or effectiveness) of the reforms and initiatives included in that housing strategy;\n (c) the quality or effectiveness (or likely quality or effectiveness) of the reforms or initiatives included in the homelessness strategy mentioned in subsection (6).\n\n#### 15D Payments relating to housing, homelessness and housing affordability matters—designated housing agreement\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with a designated housing agreement to which the State is a party.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the designated housing agreement.\n (4) Financial assistance payable to a State under this section is subject to such additional terms and conditions (if any) as are set out in the designated housing agreement.\n\n## Part 3C—Temporary energy bill relief\n\n#### 15E Payments relating to temporary energy bill relief\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a temporary energy bill relief agreement; and\n (b) the financial year is the 2022‑23 or 2023‑24 financial year.\n Determination\n (2) The Minister must determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the temporary energy bill relief agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the temporary energy bill relief agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the temporary energy bill relief agreement.\n\n#### 15F Amount of financial assistance\n\n Subject to the temporary energy bill relief agreements, the amount of financial assistance payable under this Part to the States is $1.5 billion.\n\n## Part 4—National partnership payments\n\n#### 16 National partnership payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance to:\n (a) support the delivery by the State of specified outputs or projects; or\n (b) facilitate reforms by the State; or\n (c) reward the State for nationally significant reforms.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n\n## Part 5—Payment of grants\n\n#### 17 Advance payments for financial year\n\n The Minister may make advances to a State of portions of the amount or amounts to which, it appears to the Minister, the State will be entitled under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n for a financial year.\n\n#### 18 Overpayment or underpayment of grant\n\n (1) If a State has been paid an amount in excess of the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must deduct an amount equal to the excess from any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n (2) If a State has been paid less than the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must add an amount equal to the shortfall to any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n\n#### 19 Minister may fix amounts, and times of payments, of financial assistance\n\n (1) Financial assistance payable to a State under this Act is to be paid in such amounts, and at such times, as the Minister determines in writing.\n (2) A determination made under subsection (1) is not a legislative instrument.\n\n#### 20 Repayment if condition not fulfilled\n\n (1) It is a condition of a payment of financial assistance under this Act to a State that, if the State does not fulfil a condition in respect of the payment, the State will, if the Minister so determines, repay to the Commonwealth the amount stated in the determination.\n (2) The amount stated in the determination under subsection (1) must not be more than the amount of the payment.\n (3) A determination made under subsection (1) is not a legislative instrument.\n (4) If:\n (a) a payment of financial assistance has, during a financial year, been made to a State under this Act; and\n (b) the Minister has determined under subsection (1) that the State must repay an amount in respect of the payment; and\n (c) the State has not repaid the amount;\n the Minister may deduct an amount equal to the amount unpaid from any amount that the State is entitled to receive by way of financial assistance under this Act for a subsequent financial year.\n (5) An amount payable by a State to the Commonwealth under this Act is a debt due by the State to the Commonwealth.\n\n## Part 6—Miscellaneous\n\n#### 21 Minister to have regard to Intergovernmental Agreement and other agreements\n\n In making a determination under this Act, the Minister must have regard to:\n (a) the Intergovernmental Agreement; and\n (aaa) if:\n (i) the determination relates to financial assistance to a State under section 12A; and\n (ii) the State is a party to a skills and workforce development agreement;\n the skills and workforce development agreement; and\n (aa) if the determination relates to financial assistance under section 13 or 15A—the National Health Reform Agreement; and\n (ab) if:\n (i) the determination relates to financial assistance to a State under section 15C; and\n (ii) the State is a party to a primary housing agreement or a supplementary housing agreement;\n the primary housing agreement or the supplementary housing agreement, as the case may be; and\n (ac) if:\n (i) the determination relates to financial assistance to a State under section 15D; and\n (ii) the State is a party to a designated housing agreement;\n the designated housing agreement; and\n (ad) if:\n (i) the determination relates to financial assistance to a State under section 15E; and\n (ii) the State is a party to a temporary energy bill relief agreement;\n the temporary energy bill relief agreement; and\n (b) if the determination relates to financial assistance to one or more States—any other written agreement between the Commonwealth and one or more States that relates to that financial assistance.\n\n#### 22 Appropriation\n\n Payments under Division 1 of Part 2, Part 2A, Part 3, Part 3A, Part 3B, Part 3C or Part 5 are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.\n\n#### 23 Delegation\n\n (1) The Minister may, by writing, delegate any or all of his or her powers under section 17 or 19 to an SES employee, or acting SES employee, in the Department.\n\n> Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.\n\n (2) In exercising powers under a delegation, the delegate must comply with any directions of the Minister.\n\n#### 24 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":12},{"sectionNumber":"9","sectionType":"section","heading":"General purpose financial assistance","content":"#### 9 General purpose financial assistance\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of general purpose financial assistance to the State.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.","sortOrder":13},{"sectionNumber":"Part 2A","sectionType":"part","heading":"National skills and workforce development payments","content":"## Part 2A—National skills and workforce development payments","sortOrder":14},{"sectionNumber":"12A","sectionType":"section","heading":"National skills and workforce development payments","content":"#### 12A National skills and workforce development payments\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a skills and workforce development agreement; and\n (b) the financial year is the 2024‑25 financial year or a later financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the skills and workforce development agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the skills and workforce development agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the skills and workforce development agreement.","sortOrder":15},{"sectionNumber":"Part 3","sectionType":"part","heading":"National specific purpose payments","content":"## Part 3—National specific purpose payments","sortOrder":16},{"sectionNumber":"13","sectionType":"section","heading":"National specific purpose payments for disability services","content":"#### 13 National specific purpose payments for disability services\n\n (1) Financial assistance is payable in accordance with this section to a State, for the financial year starting on 1 July 2008 and for each later financial year, for the purpose of expenditure on disability services.\n (2) The total amount of all financial assistance payable under subsection (1) to the States for a financial year is:\n (a) for the financial year starting on 1 July 2008—the amount determined by the Minister; or\n (b) for the financial year starting on 1 July 2009—$903,686,000; or\n (c) for a later financial year—the total amount under this subsection for the preceding financial year, adjusted in accordance with subsection (4).\n (3) A determination under paragraph (2)(a) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (4) The Minister may, by legislative instrument, determine the manner in which the total amount under paragraph (2)(c) is to be adjusted for a particular financial year. The determination must include a statement of the total amount for that financial year.\n (5) The Minister may, by legislative instrument, determine, for each financial year, the manner in which the total amount under subsection (2) is to be divided between the States.\n (6) Financial assistance is payable to a State under this section on condition that the financial assistance is spent on disability services.","sortOrder":17},{"sectionNumber":"Part 3A","sectionType":"part","heading":"National health reform payments","content":"## Part 3A—National health reform payments","sortOrder":18},{"sectionNumber":"15A","sectionType":"section","heading":"National health reform payments","content":"#### 15A National health reform payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with the National Health Reform Agreement.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the National Health Reform Agreement.","sortOrder":19},{"sectionNumber":"Part 3B","sectionType":"part","heading":"Payments relating to housing, homelessness and housing affordability matters","content":"## Part 3B—Payments relating to housing, homelessness and housing affordability matters","sortOrder":20},{"sectionNumber":"15B","sectionType":"section","heading":"Simplified outline of this Part","content":"#### 15B Simplified outline of this Part\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to:\n\n(a) a primary housing agreement; and\n\n(b) a supplementary housing agreement.\n\n• Payments relating to housing, homelessness and housing affordability matters may be made to a State if the State is a party to a designated housing agreement.","sortOrder":21},{"sectionNumber":"15C","sectionType":"section","heading":"Payments relating to housing, homelessness and housing affordability matters—primary housing agreement and supplementary housing agreement","content":"#### 15C Payments relating to housing, homelessness and housing affordability matters—primary housing agreement and supplementary housing agreement\n\n Scope\n (1) This section applies to a State in relation to a financial year if the State is a party to:\n (a) a primary housing agreement; and\n (b) a supplementary housing agreement that relates to the financial year.\n Determination\n (2) The Minister may determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with:\n (a) the primary housing agreement; and\n (b) the supplementary housing agreement.\n (5) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a housing strategy for the State that:\n (i) indicates the level of housing supply needed to respond to projected housing demand, and outlines the reforms and initiatives that contribute to meeting this need; and\n (ii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the housing strategy available on a publicly accessible website.\n (6) Financial assistance is payable to the State under this section for the financial year on condition that, at all times during the period ascertained in accordance with the primary housing agreement or the supplementary housing agreement, the State will:\n (a) have a homelessness strategy for the State that:\n (i) addresses the priority homelessness cohorts identified in the primary housing agreement; and\n (ii) includes reforms or initiatives that contribute to a reduction in the incidence of homelessness; and\n (iii) includes such other matters (if any) as are specified in the primary housing agreement or the supplementary housing agreement; and\n (b) so far as is reasonably practicable to do so—make the homelessness strategy available on a publicly accessible website.\n (7) Financial assistance is payable to the State under this section for the financial year on condition that, for each $1 paid to the State under this section for the financial year in relation to homelessness, the State will spend during the financial year, out of its own resources, $1 in relation to homelessness.\n (8) Financial assistance is payable to the State under this section for the financial year on condition that the State will:\n (a) give the Minister such information (if any) relating to any or all of the following:\n (i) housing;\n (ii) homelessness;\n (iii) housing affordability matters;\n as is specified in the primary housing agreement or the supplementary housing agreement; and\n (b) do so in the manner, and within the period, ascertained in accordance with the primary housing agreement or the supplementary housing agreement, as the case requires.\n (9) The following are matters for the State:\n (a) the accuracy (or likely accuracy) of the level of housing supply indicated in the housing strategy mentioned in subsection (5);\n (b) the quality or effectiveness (or likely quality or effectiveness) of the reforms and initiatives included in that housing strategy;\n (c) the quality or effectiveness (or likely quality or effectiveness) of the reforms or initiatives included in the homelessness strategy mentioned in subsection (6).","sortOrder":22},{"sectionNumber":"15D","sectionType":"section","heading":"Payments relating to housing, homelessness and housing affordability matters—designated housing agreement","content":"#### 15D Payments relating to housing, homelessness and housing affordability matters—designated housing agreement\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance for the purpose of expenditure in accordance with a designated housing agreement to which the State is a party.\n (2) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n (3) Financial assistance is payable to a State under this section on condition that the financial assistance is spent in accordance with the designated housing agreement.\n (4) Financial assistance payable to a State under this section is subject to such additional terms and conditions (if any) as are set out in the designated housing agreement.","sortOrder":23},{"sectionNumber":"Part 3C","sectionType":"part","heading":"Temporary energy bill relief","content":"## Part 3C—Temporary energy bill relief","sortOrder":24},{"sectionNumber":"15E","sectionType":"section","heading":"Payments relating to temporary energy bill relief","content":"#### 15E Payments relating to temporary energy bill relief\n\n Scope\n (1) This section applies to a State in relation to a financial year if:\n (a) the State is a party to a temporary energy bill relief agreement; and\n (b) the financial year is the 2022‑23 or 2023‑24 financial year.\n Determination\n (2) The Minister must determine that an amount specified in the determination is to be paid to the State for the purpose of making a grant of financial assistance for the financial year for the purpose of expenditure in accordance with the temporary energy bill relief agreement.\n (3) A determination under subsection (2) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.\n Terms and conditions\n (4) Financial assistance is payable to the State under this section for the financial year on condition that the financial assistance is spent in accordance with the temporary energy bill relief agreement.\n (5) Financial assistance payable to the State under this section is subject to such additional terms and conditions (if any) as are set out in the temporary energy bill relief agreement.","sortOrder":25},{"sectionNumber":"15F","sectionType":"section","heading":"Amount of financial assistance","content":"#### 15F Amount of financial assistance\n\n Subject to the temporary energy bill relief agreements, the amount of financial assistance payable under this Part to the States is $1.5 billion.","sortOrder":26},{"sectionNumber":"Part 4","sectionType":"part","heading":"National partnership payments","content":"## Part 4—National partnership payments","sortOrder":27},{"sectionNumber":"16","sectionType":"section","heading":"National partnership payments","content":"#### 16 National partnership payments\n\n (1) The Minister may determine that an amount specified in the determination is to be paid to a State specified in the determination for the purpose of making a grant of financial assistance to:\n (a) support the delivery by the State of specified outputs or projects; or\n (b) facilitate reforms by the State; or\n (c) reward the State for nationally significant reforms.\n (2) If the Minister determines an amount under subsection (1):\n (a) that amount must be credited to the Federation Reform Fund; and\n (b) the Minister must ensure that, as soon as practicable after the amount is credited, the Federation Reform Fund is debited for the purposes of making the grant.\n (3) Despite subsection (2), if an Appropriation Act relating to a financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) the total amount credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) the total amount debited from the Federation Reform Fund during the financial year for the purposes of making such grants;\n must not exceed that specified amount.\n (4) Despite subsection (2), if, for a financial year, no Appropriation Act relating to the financial year declares that a specified amount is the debit limit for the financial year for the purposes of this section:\n (a) amounts must not be credited to the Federation Reform Fund under paragraph (2)(a) during the financial year; and\n (b) amounts must not be debited from the Federation Reform Fund during the financial year for the purposes of making such grants.\n (5) A determination under subsection (1) is a legislative instrument, but section 42 (disallowance) of the Legislation Act 2003 does not apply to the determination.","sortOrder":28},{"sectionNumber":"Part 5","sectionType":"part","heading":"Payment of grants","content":"## Part 5—Payment of grants","sortOrder":29},{"sectionNumber":"17","sectionType":"section","heading":"Advance payments for financial year","content":"#### 17 Advance payments for financial year\n\n The Minister may make advances to a State of portions of the amount or amounts to which, it appears to the Minister, the State will be entitled under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n for a financial year.","sortOrder":30},{"sectionNumber":"18","sectionType":"section","heading":"Overpayment or underpayment of grant","content":"#### 18 Overpayment or underpayment of grant\n\n (1) If a State has been paid an amount in excess of the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must deduct an amount equal to the excess from any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.\n (2) If a State has been paid less than the amount that, under:\n (a) section 5; or\n (b) a provision of Part 2A, 3, 3A, 3B or 3C;\n it was entitled to receive by way of financial assistance for a financial year, the Minister must add an amount equal to the shortfall to any amount that the State is entitled to receive by way of financial assistance under that provision for the first practicable subsequent financial year.","sortOrder":31},{"sectionNumber":"19","sectionType":"section","heading":"Minister may fix amounts, and times of payments, of financial assistance","content":"#### 19 Minister may fix amounts, and times of payments, of financial assistance\n\n (1) Financial assistance payable to a State under this Act is to be paid in such amounts, and at such times, as the Minister determines in writing.\n (2) A determination made under subsection (1) is not a legislative instrument.","sortOrder":32},{"sectionNumber":"20","sectionType":"section","heading":"Repayment if condition not fulfilled","content":"#### 20 Repayment if condition not fulfilled\n\n (1) It is a condition of a payment of financial assistance under this Act to a State that, if the State does not fulfil a condition in respect of the payment, the State will, if the Minister so determines, repay to the Commonwealth the amount stated in the determination.\n (2) The amount stated in the determination under subsection (1) must not be more than the amount of the payment.\n (3) A determination made under subsection (1) is not a legislative instrument.\n (4) If:\n (a) a payment of financial assistance has, during a financial year, been made to a State under this Act; and\n (b) the Minister has determined under subsection (1) that the State must repay an amount in respect of the payment; and\n (c) the State has not repaid the amount;\n the Minister may deduct an amount equal to the amount unpaid from any amount that the State is entitled to receive by way of financial assistance under this Act for a subsequent financial year.\n (5) An amount payable by a State to the Commonwealth under this Act is a debt due by the State to the Commonwealth.","sortOrder":33},{"sectionNumber":"Part 6","sectionType":"part","heading":"Miscellaneous","content":"## Part 6—Miscellaneous","sortOrder":34},{"sectionNumber":"21","sectionType":"section","heading":"Minister to have regard to Intergovernmental Agreement and other agreements","content":"#### 21 Minister to have regard to Intergovernmental Agreement and other agreements\n\n In making a determination under this Act, the Minister must have regard to:\n (a) the Intergovernmental Agreement; and\n (aaa) if:\n (i) the determination relates to financial assistance to a State under section 12A; and\n (ii) the State is a party to a skills and workforce development agreement;\n the skills and workforce development agreement; and\n (aa) if the determination relates to financial assistance under section 13 or 15A—the National Health Reform Agreement; and\n (ab) if:\n (i) the determination relates to financial assistance to a State under section 15C; and\n (ii) the State is a party to a primary housing agreement or a supplementary housing agreement;\n the primary housing agreement or the supplementary housing agreement, as the case may be; and\n (ac) if:\n (i) the determination relates to financial assistance to a State under section 15D; and\n (ii) the State is a party to a designated housing agreement;\n the designated housing agreement; and\n (ad) if:\n (i) the determination relates to financial assistance to a State under section 15E; and\n (ii) the State is a party to a temporary energy bill relief agreement;\n the temporary energy bill relief agreement; and\n (b) if the determination relates to financial assistance to one or more States—any other written agreement between the Commonwealth and one or more States that relates to that financial assistance.","sortOrder":35},{"sectionNumber":"22","sectionType":"section","heading":"Appropriation","content":"#### 22 Appropriation\n\n Payments under Division 1 of Part 2, Part 2A, Part 3, Part 3A, Part 3B, Part 3C or Part 5 are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly.","sortOrder":36},{"sectionNumber":"23","sectionType":"section","heading":"Delegation","content":"#### 23 Delegation\n\n (1) The Minister may, by writing, delegate any or all of his or her powers under section 17 or 19 to an SES employee, or acting SES employee, in the Department.\n\n> Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.\n\n (2) In exercising powers under a delegation, the delegate must comply with any directions of the Minister.","sortOrder":37},{"sectionNumber":"24","sectionType":"section","heading":"Regulations","content":"#### 24 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":38}],"analysis":{"summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act has expanded considerably beyond its original 2009 scope. Originally focused on GST revenue grants, general purpose financial assistance, national specific purpose payments (healthcare, schools, housing, disability, indigenous services), and national partnership payments, the Act has grown to include: National Health Reform payments (added after 2011 COAG agreement), a dedicated housing and homelessness framework with detailed conditions including dollar-for-dollar matching requirements (Part 3B), temporary energy bill relief payments (Part 3C, from December 2022), and skills and workforce development payments (Part 2A, from 2024). The pool top-up mechanism and transitional GST provisions reflect a significant structural change to GST distribution methodology following the 2018 GST reforms. The imposition of detailed state-level policy conditions — such as mandatory public housing strategies, homelessness strategies, and co-contribution requirements — represents a shift toward more conditional, policy-directive federalism beyond the original framework of relatively unconditional general revenue sharing."},"complexity_factors":["Multiple distinct funding streams with different eligibility conditions, agreement types, and spending requirements operating simultaneously","Complex mathematical formula for calculating GST revenue grants, incorporating population statistics, relativity factors, and indexed pool top-up amounts","Layered indexation mechanism for the pool top-up with two separate indexation amounts, each with their own formulas referencing historical GST revenue baselines and ratchet provisions (amounts can only go up, never down)","Transitional provisions for 2021–22 to 2026–27 requiring counterfactual comparison against what states would have received under the pre-2018 GST reform regime — requires ministerial opinion and consultation","Minimum GST relativity floor changing over time (0.7 for 2022–24, rising to 0.75 from 2024–25 onwards), adding time-sensitive compliance complexity","Multiple agreement types for housing alone (primary housing agreement, supplementary housing agreement, designated housing agreement) with different conditions attached to each","Extensive cross-referencing to external agreements (Intergovernmental Agreement, National Health Reform Agreement, National Skills Agreement, various housing and energy agreements) that are not fully reproduced in the Act and are amended from time to time","GST revenue calculation itself is technically complex, requiring adjustments for constitutional immunities (states can't be taxed), notional Commonwealth GST liability, voluntary local government payments, luxury car tax and wine equalisation tax carve-outs, and refund provisions","Ministerial determinations are legislative instruments but expressly excluded from parliamentary disallowance — limiting democratic oversight while retaining technical legal character","Act has been significantly amended multiple times since 2009, evidenced by non-sequential section numbering (e.g., 12A, 15A, 15B, 15C, 15D, 15E, 15F, 2A parts) creating structural complexity"],"plain_english_summary":"## What This Law Does\n\nThe **Federal Financial Relations Act 2009** is the legal backbone of how the Australian federal government (the Commonwealth) sends money to states and territories — including NSW, Victoria, Queensland, WA, SA, Tasmania, the ACT, and the NT.\n\nThink of it as the rulebook for the biggest money transfer in Australian government: billions of dollars flowing from Canberra to the states every year to fund hospitals, schools, housing, disability services, and more.\n\n---\n\n## Who Gets What\n\nThe Act creates several distinct \"streams\" of funding:\n\n### 1. 🏦 GST Revenue Grants (the big one)\nEvery state gets a share of the money collected from the **GST** (the 10% tax on most goods and services). The split is based on each state's population — but adjusted by a \"relativity factor\" that accounts for the fact that some states have higher costs or greater needs (e.g., the NT costs more to run services in than Victoria). No state can receive less than 70–75 cents for every dollar an \"average\" state gets.\n\nThere's also a **\"pool top-up\"** — extra Commonwealth money added to the pot from 2021–22 onwards, starting at $600 million and rising to $850 million plus inflation adjustments. This was introduced to soften the impact of GST reform changes.\n\n### 2. 🎓 Skills & Workforce Development Payments\nMoney tied to the **National Skills Agreement** (in effect from 2024), which states must spend on skills training and workforce development programs.\n\n### 3. ♿ Disability Services Payments\nOngoing funding (starting at ~$904 million in 2009–10 and indexed upward each year) that states **must** spend specifically on disability services.\n\n### 4. 🏥 National Health Reform Payments\nFunding tied to the **National Health Reform Agreement**, which states must spend on healthcare in accordance with that agreement.\n\n### 5. 🏠 Housing, Homelessness & Affordability Payments\nA newer stream of funding (Part 3B) for housing and homelessness. To receive this money, states must:\n- Have a published **housing strategy** showing how they'll meet housing demand\n- Have a published **homelessness strategy** targeting priority groups\n- **Match every $1** of Commonwealth homelessness funding with $1 of their own money\n- Report data back to the federal government\n\n### 6. ⚡ Energy Bill Relief (temporary)\nA one-off $1.5 billion fund split across 2022–23 and 2023–24 to help states deliver **energy bill relief** to households and small businesses experiencing high power bills. States had to meet specific eligibility criteria before passing the money on.\n\n### 7. 🤝 National Partnership Payments\nFlexible grants the federal Minister can direct to states for specific projects, policy reforms, or to reward states that achieve nationally significant reforms.\n\n---\n\n## What Strings Are Attached?\n\nMost funding comes with **conditions**. States can lose money if they don't:\n- Spend it on the approved purpose\n- Meet reporting requirements\n- Fulfil agreed milestones\n\nIf a state breaks the rules, the Commonwealth can demand repayment — or just deduct it from future payments.\n\n---\n\n## Why Does This Matter to Ordinary Australians?\n\nThis Act directly determines whether your state government has the money to run:\n- **Public hospitals** and healthcare\n- **Schools and TAFE** training\n- **Disability support services**\n- **Social housing** and homelessness programs\n- Your **energy bill relief** rebate\n\nIf your state doesn't sign the relevant agreements, or fails to meet conditions, it misses out on federal money — and services can suffer."},"issue_detection":{"absurdities":[{"type":"impossible_compliance","section":"s 7","severity":"medium","reasoning":"A payment year runs from 1 July to 30 June. The population figure for 31 December within that year is only determined by the Australian Statistician 'after that date and before 31 August in the following payment year'. This means the legally operative population figure for calculating grants becomes available up to 14 months after the payment year commences and over a month after it ends. The Act provides no mechanism for provisional population figures to underpin advance payments, creating a structural gap.","confidence":0.82,"description":"Temporal impossibility in population determination: the estimated population of a State on 31 December in a payment year cannot be determined until after that date, yet the grant formula in s 5(1) requires this figure to calculate entitlements for the same payment year that ends on 30 June. This means the final grant calculation for any payment year cannot be completed until after 31 August of the following payment year, yet advance payments under s 17 must be made during the payment year using figures that do not yet legally exist."},{"type":"self_contradicting","section":"s 8A(2) and s 8A(4)","severity":"high","reasoning":"The indexation formulas are designed to reflect GST revenue growth. However, the 'greater of' ratchet provisions mean indexation amounts are permanently locked at their historical peak. In a prolonged GST revenue decline, the pool top-up could mathematically exceed total GST revenue, meaning the formula numerator in s 5(1) could be larger than the total revenue pool being distributed — defeating the redistributive logic of the entire Part 2 scheme.","confidence":0.78,"description":"Circular ratchet mechanism: the first indexation amount for any year from 2023-24 onwards cannot be less than the first indexation amount for the prior year (s 8A(2)(b)), and the second indexation amount from 2026-27 onwards cannot be less than the prior year's second indexation amount (s 8A(4)(b)). However, both amounts are also calculated by reference to GST revenue growth from a base year. If GST revenue contracts significantly, the formula yields a negative number, but the ratchet floors prevent any reduction. This means the pool top-up can permanently embed a historically high indexation amount even if GST revenue collapses, potentially causing the pool top-up to exceed actual GST revenue collected."},{"type":"impossible_compliance","section":"s 15C(7)","severity":"medium","reasoning":"The dollar-matching obligation is tied to amounts actually 'paid' during the financial year, but state budget cycles and appropriations operate independently. A state cannot guarantee dollar-for-dollar matching in real time against unpredictable Commonwealth payment timing under s 19. The Act contains no mechanism for retrospective compliance, provisional matching, or adjustment where late Commonwealth payments make contemporaneous matching impossible.","confidence":0.72,"description":"Temporal sequencing impossibility for homelessness dollar-matching condition: the condition requires that 'for each $1 paid to the State under this section for the financial year in relation to homelessness, the State will spend during the financial year, out of its own resources, $1 in relation to homelessness.' Financial assistance is paid under s 19 at times and in amounts fixed by the Minister. If payments are made late in the financial year, the State is required to have already spent matching funds during the same financial year in relation to homelessness before knowing the quantum of Commonwealth payments, or must spend matching amounts within an impossibly compressed timeframe after receiving final payments near year-end."},{"type":"other","section":"s 15E(1)(b) and s 15F","severity":"low","reasoning":"Once both 2022-23 and 2023-24 have passed, the Part becomes inoperative in practice. The $1.5 billion cap in s 15F continues to apply to a payment stream that can no longer be activated. While not logically impossible, the structural result is a permanently dead provision that continues to consume legislative space and could cause confusion about whether it authorises payments in future years.","confidence":0.85,"description":"Part 3C is temporally spent but structurally perpetual: the scope of s 15E is expressly limited to the 2022-23 and 2023-24 financial years, meaning no new payment obligations can arise under the Part. However, s 15F states the total financial assistance 'payable under this Part' is $1.5 billion without any temporal limitation, and the Part remains on the statute book in perpetuity. This creates an ongoing but unenforceable legislative provision — a zombie obligation that can never be triggered."},{"type":"circular_definition","section":"s 8A(5) — second indexation formula for 2024-25 payment year","severity":"low","reasoning":"The GST revenue figure under s 6 does not include pool top-ups — it is the raw GST revenue. So technically the circularity does not arise at the definitional level. However, the policy coherence is undermined because the $250M base for second indexation and the $850M base for first indexation both anchor to years where the pool top-up inflated total distributions, meaning the indexation formulas measure growth from an already-inflated distribution base.","confidence":0.55,"description":"Self-referential base year problem: the second indexation amount formula uses 'GST revenue for 2024-25' as its denominator. For the 2025-26 payment year, the formula requires the 2024-25 GST revenue figure, which is determined under s 6 and requires a notifiable instrument. However, the 2024-25 pool top-up (Item 5 of the table) itself includes the first indexation amount, meaning the base year figure used to calculate future indexation is itself derived from a pool top-up calculation that includes an indexation component — creating a compounding interdependency that is not acknowledged or resolved in the Act."},{"type":"retroactive_impossibility","section":"s 13(1) and s 13(2)(a)","severity":"medium","reasoning":"The Act commenced 1 April 2009. The obligation in s 13 is stated to apply from 1 July 2008. Any determination under s 13(2)(a) for the 2008-09 year would be a determination made after the fact for a year that was already running. While parliaments can legislate retrospectively, the machinery provisions (determinations, conditions, reporting) are drafted as if they apply prospectively, making compliance with conditions for the nine months of 2008-09 preceding commencement structurally impossible.","confidence":0.76,"description":"Retroactive financial obligation predating the Act: s 13(1) states financial assistance is payable 'for the financial year starting on 1 July 2008 and for each later financial year'. The Act commenced on 1 April 2009 (s 2). The financial year starting 1 July 2008 ended on 30 June 2009, meaning the Act purports to create payment obligations for a financial year that was already three-quarters complete at commencement and for which the Minister must 'determine' an amount (s 13(2)(a)) — a determination that necessarily relates to a period before the Act existed."},{"type":"self_contradicting","section":"s 9(4)","severity":"medium","reasoning":"s 9(2) uses mandatory language ('must be credited'/'must ensure... debited') but s 9(4) uses prohibitory language ('must not be credited'/'must not be debited'). If the Minister makes a valid determination but no Appropriation Act sets a debit limit, the mandatory obligation and the prohibition apply simultaneously to the same transaction. The Act provides no mechanism to resolve this conflict or to invalidate the underlying determination.","confidence":0.8,"description":"Catch-22 on general purpose financial assistance: if no Appropriation Act declares a debit limit, then no amounts may be credited to or debited from the Federation Reform Fund for general purpose assistance. But s 9(2) requires that once the Minister makes a determination, the amount 'must' be credited and 'must' be debited. This means a valid ministerial determination under s 9(1) can be rendered legally inoperative by the absence of an Appropriation Act, but the Act does not prevent the Minister from making such a determination — creating valid determinations that cannot be lawfully actioned."}],"contradictions":[{"severity":"high","section_a":"s 9(2)","section_b":"s 9(4)","confidence":0.85,"description":"Section 9(2) imposes a mandatory obligation that amounts determined by the Minister 'must be credited' to the Federation Reform Fund and 'must' be debited for the purpose of making grants. Section 9(4) absolutely prohibits those same credits and debits in any financial year where no Appropriation Act has declared a debit limit. A valid ministerial determination therefore simultaneously triggers a mandatory duty and an absolute prohibition with no resolution mechanism."},{"severity":"medium","section_a":"s 15C(5) and s 15C(6)","section_b":"s 15C(9)","confidence":0.78,"description":"Sections 15C(5) and 15C(6) impose conditions on payment requiring States to have housing and homelessness strategies of sufficient quality and content. Section 15C(9) then expressly provides that the accuracy, quality, and effectiveness of those same strategies are 'matters for the State' — implying the Commonwealth cannot assess or enforce them. This creates a condition (strategies must exist and contain specified content) coupled with an explicit disclaimer of Commonwealth authority to evaluate whether that condition is meaningfully met, rendering the conditions partially unenforceable against their own terms."},{"severity":"high","section_a":"s 16(2)","section_b":"s 16(4)","confidence":0.85,"description":"The same structural contradiction as s 9(2) vs s 9(4) applies to national partnership payments under s 16. Section 16(2) mandates that determined amounts 'must be credited' to and 'must' be debited from the Federation Reform Fund. Section 16(4) absolutely prohibits such credits and debits where no Appropriation Act debit limit exists for the financial year. A ministerial determination under s 16(1) simultaneously triggers a mandatory obligation and an absolute prohibition."},{"severity":"low","section_a":"s 3(1)(a) — GST revenue grants 'to be used by the States for any purpose'","section_b":"s 5(3) — additional transitional grant tied to counterfactual Minister's opinion","confidence":0.6,"description":"Section 3(1)(a) describes GST revenue grants as general revenue assistance 'to be used by the States for any purpose', emphasising unconditional use. Section 5(3) entitles States to additional transitional grants based on the Minister's opinion about what they 'would have been entitled to' absent the 2018 Act — a subjective, opinion-based entitlement mechanism that is inconsistent with the objective formula-based approach in s 5(1) and introduces a non-transparent discretionary element into what is described as formula-driven general revenue assistance."},{"severity":"medium","section_a":"s 18(1) — mandatory deduction for overpayment","section_b":"s 20(4) — discretionary deduction for condition breach","confidence":0.82,"description":"Section 18(1) mandates ('must deduct') that the Minister deduct overpayments from future entitlements. Section 20(4) provides that where a State has breached a condition and not repaid as required, the Minister 'may deduct' — conferring discretion. This creates an asymmetry where a purely administrative overpayment triggers a mandatory recovery obligation, but a deliberate breach of a statutory condition (which is more culpable) triggers only a discretionary recovery power, inverting the expected hierarchy of enforcement."},{"severity":"medium","section_a":"s 12A(1)(b) — skills payments applicable from 2024-25 financial year","section_b":"s 4 definition of 'skills and workforce development agreement' para (a) — agreement took effect 1 January 2024","confidence":0.75,"description":"The National Skills Agreement took effect on 1 January 2024, which falls within the 2023-24 financial year. However, s 12A(1)(b) restricts payment eligibility to the 2024-25 financial year or later. This means that States bound by the skills and workforce development agreement from 1 January 2024 are subject to its obligations throughout the remainder of 2023-24 but are ineligible to receive financial assistance under Part 2A for that period — creating a gap where agreement obligations apply without corresponding Commonwealth funding support."}]},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":true,"description":"The Act as presented covers payment streams and program types beyond a single formula grant: it includes dedicated sections for national skills and workforce development payments (s.12A) starting in 2024‑25; national health reform payments (s.15A); a structured set of housing, homelessness and housing affordability payments tied to primary/supplementary or designated housing agreements (Part 3B, ss.15B–15D); and temporary energy bill relief payments for 2022‑23 and 2023‑24 (Part 3C, ss.15E–15F). It also contains added transitional‑year mechanics and a detailed pool top‑up/indexation schedule (s.8A). These provisions expand the Act’s operational scope from a pure GST distribution statute to a broader federal financial relations framework that authorises multiple targeted, conditional payments and specific intergovernmental agreement‑linked programs (see sections 3, 8A, 12A, 15A, 15B–15F)."},"complexity_factors":["Multiple interlocking calculation rules for GST grants: population estimates (s.7), GST revenue calculation by Ministerial instrument (s.6), GST revenue sharing relativities (s.8) and pool top‑up/indexation formulas (s.8A).","Numerous conditional payment streams (general revenue, national specific purpose, health, housing, skills, energy relief, national partnerships) with distinct eligibility and terms (Parts 2, 2A, 3, 3A, 3B, 3C, 4).","Extensive ministerial discretion to determine amounts and timing, plus many determinations are legislative instruments but expressly excluded from standard disallowance (see e.g. s.8(3), s.9(5), s.12A(3), s.13(3), s.15A(2), s.15C(3), s.15D(2), s.15E(3), s.16(5)).","Appropriation and federation fund mechanics (Federation Reform Fund credits/debits; Appropriation Act debit limits) that create multi-step funding flows and statutory caps (ss.9(2)–(4); 16(2)–(4)).","Temporal and transitional rules (specific payment years, transitional-year additional assistance, and indexation carry‑forward rules in s.8A(2)–(4)) that change calculations across years.","Conditionality and reporting requirements imposed on States (e.g. housing and homelessness strategies, information provision, 1:1 homelessness matching) that create compliance and verification tasks (s.15C(4)–(8)).","Delegation and administrative rules (Minister may delegate certain powers (s.23); the Australian Statistician’s timing role (s.7)) requiring cross-agency coordination.","Adjustments and exclusions required in GST calculation (removing effects of luxury car tax and wine equalisation tax under s.6(5); treatment of GST refunds under s.6(4)) which add technical tax‑law interaction complexity."],"plain_english_summary":"# What this law does (simple):\n\nThis Act sets out how the Commonwealth pays money to the States and the two Territories for a range of purposes, and the rules for those payments. It specifies (a) how the annual GST revenue grants to each State are calculated; (b) other types of general and targeted grants (for skills, health, disability, housing, temporary energy bill relief and national partnerships); and (c) the conditions, timing and administrative mechanics for making, adjusting, recovering or delegating those payments.\n\nKey mechanical features and who decides:\n\n- GST revenue grants: each State’s GST grant for a payment year is calculated from a formula that uses an \"adjusted State population\" share of the GST pool (GST revenue plus any \"pool top‑up\") (see section 5). The adjusted State population equals the State’s estimated population on 31 December of the payment year multiplied by a GST revenue sharing relativity (section 5; sections 7–8). \n- GST revenue is a number the Minister determines by notifiable instrument based on collected GST, interest connected to unpaid GST, and agreed estimates of unpaid local government payments, minus GST refund amounts (section 6). The Minister must make adjustments to remove effects of the luxury car tax and wine equalisation tax (section 6(5)). \n- Pool top‑up: a statutory table sets fixed top‑up amounts for particular payment years and specifies two indexation calculations (\"first\" and \"second\" indexation amounts) based on changes in GST revenue (section 8A). \n- Ministerial determinations and instruments: many payments (general purpose, national partnership, national specific purpose, national health reform, housing, skills and energy relief payments) are made when the Minister determines amounts in writing or by legislative instrument (sections 9, 12A, 13, 15A, 15C–15E, 16). Some determinations are legislative instruments but the usual parliamentary disallowance provision (s 42 of the Legislation Act 2003) is excluded for those determinations (see multiple sections, e.g. 8(3), 9(5), 12A(3), 13(3), 15A(2), 15C(3), 15D(2), 15E(3), 16(5)). \n- Conditions on spending: many grants are conditional on States spending in accordance with particular agreements (skills and workforce development agreements, National Health Reform Agreement, primary/supplementary or designated housing agreements, temporary energy bill relief agreements) (see sections 12A(4) and (5), 15A(3), 15C(4)–(8), 15D(3)–(4), 15E(4)–(5)). \n- Appropriation and finance mechanics: payments are to be made out of the Consolidated Revenue Fund (section 22). Some payments are credited to and debited from the Federation Reform Fund as a step in the process (sections 9(2), 16(2)). Appropriation Acts can set debit limits that constrain credits/debits (sections 9(3)–(4), 16(3)–(4)). \n- Timing, advances, and corrections: the Minister may make advance payments (section 17); must correct overpayments/underpayments by adjustment in the next practicable year (section 18); may set payment amounts and times in writing (section 19); and may require repayment or recover amounts if a State does not meet conditions (section 20). \n- Delegation and administration: the Minister may delegate powers under sections 17 and 19 to SES employees (section 23). The Australian Statistician determines the State population numbers used in the formula (section 7). The Minister must consult States before certain determinations (for example, before determining relativity under section 8(2)) and must \"have regard to\" relevant intergovernmental agreements when making determinations (section 21).\n\nWhy it matters (official purpose and how the mechanics test that purpose):\n\n- The Act’s stated object is to provide ongoing financial support to the States for service delivery in multiple forms: general revenue (including GST grants), national specific purpose payments, national health reform payments, housing-related payments, national partnership payments, and targeted energy bill relief (section 3). That is an explicit purpose claim in the text (section 3(1)–(2)).\n\n- Mechanically, the Act converts that object into: (1) a formulaic, population‑based distribution of GST-derived funds (sections 5–8 and 8A); (2) a set of Ministerial powers to make other grants on terms linked to specific agreements (Parts 2A, 3, 3A, 3B, 3C, 4); and (3) administrative and appropriation controls (sections 9, 16, 22). \n\n- Costs and who pays: payments flow from the Consolidated Revenue Fund (section 22). In practical terms, the Commonwealth (taxpayers via consolidated revenue) funds the grants, and the States/territories receive them (see sections 5, 9, 12A, 13, 15A, 15C–15F, 16). \n\n- Incentives and conditionality: most targeted payments are conditional on States signing and spending according to the relevant agreements (for example, skills agreements, National Health Reform Agreement, housing agreements, temporary energy bill relief agreements) (sections 12A(4)–(5), 15A(3), 15C(4), 15D(3), 15E(4)). These conditions steer State spending by tying Commonwealth funds to specified uses and reporting requirements (see section 15C(8) on information the State must give the Minister). One explicit matching requirement is that for homelessness funding a State must spend $1 from its own resources for each $1 paid under section 15C(7). \n\n- Trade-offs and opportunity costs: conditional grants shift some decision-making about priorities to the Commonwealth and the terms of bilateral/multilateral agreements. States receiving conditional funds must allocate their budgets to meet conditions (e.g. maintain strategies and publish them under section 15C(5)–(6)), which can displace other State priorities. The Act also allows the Minister to make general purpose payments that are not tied to specific spending but still flow through the Federation Reform Fund process (section 9). \n\n- Implementation risk and administrative burden: the Act creates multiple technical determinations (population estimates timing in s.7; GST revenue number by Ministerial notifiable instrument in s.6; complicated pool top‑up and indexation math in s.8A), consultation duties (s.8(2)), and reporting/strategy obligations for States (s.15C(5)–(8)). These require data flows, intergovernmental negotiation and administrative capacity on both Commonwealth and State sides. \n\n- Bureaucratic discretion and parliamentary oversight: the Minister exercises significant discretion to set amounts and timing (sections 17, 19, 20), to determine sharing relativities (section 8) and GST revenue amounts (section 6). Many of the Minister’s determinations are legislative instruments but the Act explicitly excludes disallowance under section 42 of the Legislation Act 2003 for several categories (see e.g. section 8(3), 9(5), 12A(3), 13(3), 15A(2), 15C(3), 15D(2), 15E(3), 16(5)), which reduces one avenue of parliamentary oversight for those specific instruments. The Minister can delegate certain powers to senior departmental staff (section 23). \n\n- Enforcement and recovery: if a State fails to meet conditions, the Minister can require repayment and may deduct unpaid amounts from future assistance; amounts payable are debts due to the Commonwealth (section 20(1), (4)–(5)). The Act also mandates correction of overpayments/underpayments by adjustment in the first practicable subsequent year (section 18). \n\nConcrete triggers and special provisions to watch:\n\n- Transitional protections for particular payment years and an additional financial assistance mechanism tied to an historical legislative change (section 5(2)–(4)). \n- Pool top‑up schedule and indexation mechanics that change the pool available for distribution across specified years (section 8A). \n- Newer‑dated agreement types are referenced by date in definitions (for example, temporary energy bill relief agreements entered on or after 9 December 2022 (definition) and the skills and workforce development agreement that took effect on 1 January 2024 (definition)), which expands the Act’s operational scope for those specific programs. \n\nBottom line (mechanical statement): the Act is the Commonwealth’s statutory framework for transferring revenue to States and Territories through formula grants (notably GST-based grants) and agreement-based payments, with detailed formulas for GST distribution, ministerial discretion over many amounts and timings, conditions tying funds to agreements and reporting, appropriation controls, and recovery powers where conditions are not met (see sections 3–24)."},"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":1743},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":true,"description":"The legislation has grown significantly beyond its original 2009 framework. Initially focused on GST distribution and general revenue assistance, it has expanded to include: Part 2A (skills/workforce development, effective 2024-25), Part 3A (national health reform payments post-2011), Part 3B (housing and homelessness payments with complex agreement structures), and Part 3C (temporary energy bill relief for 2022-24). The GST distribution mechanics have also become substantially more complex with the addition of pool top-ups, indexation calculations, and transitional no-worse-off guarantees."},"complexity_factors":["Multiple interlocking payment schemes with different calculation methods (GST grants vs. specific purpose payments vs. partnership payments)","Mathematical formulas for GST distribution including variables for population, relativity factors, pool top-ups, and indexation amounts (sections 5, 8, 8A)","Extensive cross-referencing to other Commonwealth legislation including the GST Act, Taxation Administration Act 1953, Federation Reform Fund Act 2008, and various tax imposition Acts","Approximately 20 defined terms in section 4, many themselves requiring cross-references (e.g., 'skills and workforce development agreement', 'designated housing agreement')","Conditional payment logic requiring States to be party to specific intergovernmental agreements before funding is triggered (Parts 2A, 3A, 3B, 3C)","Transitional provisions for GST revenue sharing with year-specific floor values (0.7 for 2022-24, 0.75 for 2024-25 onwards) and no-worse-off guarantees for 2021-22 to 2026-27","Nested conditions for housing payments requiring both primary AND supplementary agreements (section 15C)","Legislative instruments that are explicitly non-disallowable (removing parliamentary oversight for certain determinations)"],"plain_english_summary":"**What this legislation does:**\nThis Act is the rulebook for how the Australian Government (the Commonwealth) gives money to the States and Territories. It establishes the legal framework for transferring billions of dollars each year to fund hospitals, schools, housing, disability services, and other state-run programs.\n\n**Key mechanisms:**\n* **GST Revenue Grants:** The biggest component. It distributes Goods and Services Tax (GST) revenue to states using a complex formula based on population and a \"relativity\" factor (which adjusts for each state's ability to raise revenue and cost of delivering services). It includes special \"pool top-up\" payments and transitional guarantees to ensure no state is worse off during recent reforms.\n* **Specific Purpose Payments:** Money that must be spent on specific sectors like disability services (Part 3), health reform (Part 3A), skills and workforce development (Part 2A), and housing/homelessness (Part 3B).\n* **Temporary Energy Bill Relief:** A time-limited scheme (2022-23 and 2023-24) to help households and small businesses with high electricity bills (Part 3C).\n* **National Partnership Payments:** Funding for specific projects, reforms, or rewards for achieving national goals (Part 4).\n* **General Financial Assistance:** Discretionary grants the Minister can determine (Part 2).\n\n**Who it affects:**\n* **States and Territories:** They receive the funding and must comply with conditions (like maintaining housing strategies or matching homelessness spending dollar-for-dollar).\n* **Commonwealth Government:** The Treasurer and relevant Ministers decide how much each state gets, within the formulas set by the Act.\n* **Citizens:** Ultimately determines how much funding your state has for hospitals, housing, and services.\n\n**Why it matters:**\nThis Act underpins the entire financial relationship between federal and state governments. Without it, the states wouldn't receive their share of GST revenue or federal funding for hospitals and schools. Recent amendments have expanded its scope to include major new housing affordability programs and temporary cost-of-living relief."}},"importantCases":[],"_links":{"self":"/api/acts/federal-financial-relations-act-2009","history":"/api/acts/federal-financial-relations-act-2009/history","analysis":"/api/acts/federal-financial-relations-act-2009/analysis","conflicts":"/api/acts/federal-financial-relations-act-2009/conflicts","importantCases":"/api/acts/federal-financial-relations-act-2009/important-cases","documents":"/api/acts/federal-financial-relations-act-2009/documents"}}