{"id":"F2025L00356","name":"Federal Financial Relations (National Specific Purpose Payments for 2023-24) Determination 2025","slug":"federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":442781,"registerId":"F2025L00356-fast-fetch-1775957720706","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Federal Financial Relations (National Specific Purpose Payments for 2023-24) Determination 2025","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nFederal Financial Relations (National Specific Purpose Payments for 2023‑24) Determination 2025\n\nI, Andrew Leigh, Assistant Minister for Competition, Charities and Treasury, make the following determination.\n\nDated   12 March 2025\n\n \n\nDr Andrew Leigh\n\nAssistant Minister for Competition, Charities and Treasury\n\nParliamentary Secretary to the Treasurer\n\n \n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1  Name \n\n2  Commencement\n\n3  Authority\n\n4  Definitions\n\nPart 2—Determination of national specific purpose payments for 2023-24\n\n5  National specific purpose payments for skills and workforce development for 2023‑24\n\n \n\nPart 1—Preliminary\n\n1  Name\n\n  This instrument is the Federal Financial Relations (National Specific Purpose Payments for 2023-24) Determination 2025.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n3  Authority\n\n  This instrument is made under the Federal Financial Relations Act 2009.\n\n4  Definitions\n\nNote: Paragraph 13(1)(b) of the Legislation Act 2003 has the effect that expressions have the same meaning in this instrument as in the Federal Financial Relations Act 2009 as in force from time to time.\n\n  In this instrument:\n\nthe Act means the Federal Financial Relations Act 2009.\n\nPart 2—Determination of national specific purpose payments for 2023-24\n\n5  National specific purpose payments for skills and workforce development for 2023‑24\n\n (1) For the purposes of subsection 12(4) of the Act, the total amount for the preceding financial year under paragraph 12(2)(c) of the Act is to be indexed for the 2023-24 financial year by applying a growth rate of 18.2427636 per cent.\n\nNote 1: Despite its repeal, section 12 continues to apply to in relation to the 2023-24 financial year: see item 9 of Schedule 6 to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024.\n\nNote 2: Clause D27 in Schedule D to the Intergovernmental Agreement provides that the growth factor for national skills and workforce development specific purpose payments is calculated according to the following formula:\n\n![Start formula growth factor equal to open round bracket 0.85 times wage cost index 1 close round bracket plus open round bracket 0.15 times wage cost index 6 close round bracket end formula](image.002.png)\n\nNote 3: From 1 January 2024, the National Skills Agreement commenced, replacing the National Agreement for Skills and Workforce Development. The new funding arrangements are designed to replace the National Specific Purpose Payments for Skills and Workforce Development.\n\nNote 4: The growth factor provided by clause D27 in Schedule D to the Intergovernmental Agreement was modified to take into account the National Skills Agreement, resulting in the following formula being used to calculate the final growth rate:\n\n![Start formula growth factor equal to open round bracket 0.85 times wage cost index 1 close round bracket plus open round bracket 0.15 times wage cost index 6 close round bracket plus open round bracket State entitlement above minimum Commonwealth contribution up to Cap 1 under the National Skills Agreement close round bracket plus open round bracket State entitlement above Cap 1 and up to Cap 2 under the National Skills Agreement close round bracket end formula](image.003.png)\n\nNote 5: The Wage Cost Indices are weighted averages of movements in a wage component and the All Groups Consumer Price Index published by the Australian Statistician, to reflect movements in labour and supplier costs respectively. The wage component is calculated from dollar increases in the national minimum wage determined by the Fair Work Commission, expressed as a percentage of the latest available Average Weekly Ordinary Time Earnings figures published by the Australian Statistician.\n\n (2) Under paragraph 12(2)(c) of the Act, the total amount of all financial assistance payable under subsection 12(1) of the Act to the States for the 2023-24 financial year is $1,901,093,000.00.\n\n (3) For the purposes of subsection 12(5) of the Act, the manner in which the total amount stated in subsection (2) of this section is to be divided between the States is set out in the  following table.\n\n \n\n| Item | For this State: | The amount of financial assistance for the 2023‑24 financial year is: |\n| --- | --- | --- |\n| 1 | New South Wales | $594,739,638.73 |\n| 2 | Victoria | $486,944,712.40 |\n| 3 | Queensland | $389,803,233.96 |\n| 4 | Western Australia | $206,447,165.06 |\n| 5 | South Australia | $131,595,218.20 |\n| 6 | Tasmania | $40,522,799.37 |\n| 7 | Australian Capital Territory | $33,156,344.55 |\n| 8 | Northern Territory | $17,883,887.73 |\n|  | Total | $1,901,093,000.00 |\n\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The instrument operates as a transitional measure: it applies the legacy national specific purpose payments machinery to 2023–24 despite the repeal of section 12 (Note 1), but modifies the Intergovernmental Agreement growth formula to account for entitlements under the new National Skills Agreement (Notes 3–4). In effect the scope is limited to settling 2023–24 SPP amounts while incorporating components of the replacement funding arrangements."},"complexity_factors":["Cross‑references to the Federal Financial Relations Act 2009 and specific subsections (s5(1) refers to subsections 12(4), 12(2)(c) and 12(5) of the Act) increasing legal dependency on external provisions (s5(1)–(3)).","Use of a precise numeric growth rate (18.2427636%) produced by a multi‑part formula rather than a simple index (s5(1); Note 2 and Note 4).","Modification of the Intergovernmental Agreement formula to incorporate entitlements under the new National Skills Agreement (Note 4), requiring interaction between agreements and caps.","Reliance on statistical measures that combine wage components and CPI (Wage Cost Indices) and inputs from the Fair Work Commission and the Australian Statistician (Note 5), creating data‑dependence and calculation complexity.","Transitional legal mechanics: application of a repealed section for a single year via a savings clause (Note 1), which raises interpretive and temporal complexity.","Derivation of fixed per‑State dollar amounts in a table (s5(3)) is straightforward in result but depends on the above calculations and cross‑agreement adjustments.","Limited administrative discretion in outcomes (amounts are fixed) but non‑trivial implementation work needed to calculate and reconcile components with State entitlements under the National Skills Agreement."],"plain_english_summary":"This determination sets the Commonwealth’s national specific purpose payments for skills and workforce development for 2023–24. It applies an 18.2427636% growth rate to the prior-year total to produce a $1,901,093,000 pool and specifies how that pool is divided between the States, using a growth-formula adjusted to reflect the new National Skills Agreement."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: determining the specific amounts of national specific purpose payments for skills and workforce development for the 2023-24 financial year. While it references the transition to the National Skills Agreement, this is explanatory context rather than scope expansion. The instrument performs exactly the function anticipated by the empowering Act."},"complexity_factors":["Multiple cross-references to repealed provisions (section 12 of the Act) and transitional arrangements in another Act (Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024)","Complex indexing formula involving weighted wage cost indices (0.85 × WCI-1 + 0.15 × WCI-6) plus additional caps and adjustments for the National Skills Agreement transition","Requires understanding of the Intergovernmental Agreement on Federal Financial Relations (external document not reproduced in full)","Nested legislative history: applies despite repeal, modified by subsequent agreement, transitional arrangements in separate amending legislation","Precise monetary allocations to 8 jurisdictions with cent-level accuracy ($1,901,093,000.00)"],"plain_english_summary":"This determination allocates nearly $1.9 billion (A$1,901,093,000) of Commonwealth funding among Australian states and territories for skills, vocational education and workforce development in 2023–24. It specifies each jurisdiction’s share to finalise payments under the outgoing National Specific Purpose Payments arrangements.\n\nIt matters because it closes out the old funding system ahead of the National Skills Agreement, funds training programs nationwide, and reflects an unusually high growth adjustment (about 18.24%) for the year."}},"importantCases":[],"_links":{"self":"/api/acts/federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025","history":"/api/acts/federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025/history","analysis":"/api/acts/federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025/analysis","conflicts":"/api/acts/federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025/conflicts","importantCases":"/api/acts/federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025/important-cases","documents":"/api/acts/federal-financial-relations-national-specific-purpose-payments-for-2023-24-determination-2025/documents"}}