{"id":"C2008A00156","name":"Federation Reform Fund Act 2008","slug":"federation-reform-fund-act-2008","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"156 of 2008","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":8094,"registerId":"commonwealth-C2008A00156-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 Federation Reform Fund Act 2008.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act commences on 1 January 2009.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Simplified outline","content":"#### 3 Simplified outline\n\n  The following is a simplified outline of this Act:\n\n• This Act establishes the Federation Reform Fund.\n\n• The purpose of the Federation Reform Fund is the making of grants of financial assistance to the States and Territories.\n\n• The terms and conditions on which financial assistance is granted are to be set out in a written agreement between the Commonwealth and the State or Territory.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Crown to be bound","content":"#### 4 Crown to be bound\n\n  This Act binds the Crown in each of its capacities.","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"Federation Reform Fund","content":"## Part 2—Federation Reform Fund","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Establishment of the Federation Reform Fund","content":"#### 5 Establishment of the Federation Reform Fund\n\n  (1) The Federation Reform Fund is established by this section.\n  (2) The Federation Reform Fund is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.\n\n> Note 1: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.\n\n> Note 2A: An amount originating in the DisabilityCare Australia Fund may be transferred to the Federation Reform Fund—see the DisabilityCare Australia Fund Act 2013.\n\n> Note 2AA: An amount originating in the Medical Research Future Fund may be transferred to the Federation Reform Fund—see the Medical Research Future Fund Act 2015.\n\n> Note 2AB: An amount originating in the Future Drought Fund may be transferred to the Federation Reform Fund—see the Future Drought Fund Act 2019.\n\n> Note 2AC: An amount originating in the Disaster Ready Fund may be transferred to the Federation Reform Fund—see the Disaster Ready Fund Act 2019.\n\n> Note 2AD: An amount originating in the Housing Australia Future Fund may be transferred to the Federation Reform Fund—see the Housing Australia Future Fund Act 2023.\n\n> Note 3: An amount may be credited to the Federation Reform Fund under section 9 or 16 of the Federal Financial Relations Act 2009.\n\n> Note 5: An amount may be credited to the Federation Reform Fund under section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.\n\n> Note 5A: An amount originating in the Confiscated Assets Account may be transferred to the Federation Reform Fund—see the Proceeds of Crime Act 2002.\n\n> Note 6: An amount may be credited to the Federation Reform Fund under section 8 of the Social and Community Services Pay Equity Special Account Act 2012.\n\n> Note 7: An amount may be credited to the Federation Reform Fund under section 10 of the Fuel Indexation (Road Funding) Special Account Act 2015.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Purpose of the Federation Reform Fund","content":"#### 6 Purpose of the Federation Reform Fund\n\n  The purpose of the Federation Reform Fund is the making of grants of financial assistance to the States and Territories.\n\n> Note: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).","sortOrder":7},{"sectionNumber":"Part 3","sectionType":"part","heading":"Terms and conditions of grants","content":"## Part 3—Terms and conditions of grants","sortOrder":8},{"sectionNumber":"7","sectionType":"section","heading":"Terms and conditions of grants","content":"#### 7 Terms and conditions of grants\n\n  Scope\n  (1) This section applies if:\n    (a) an amount is to be debited from the Federation Reform Fund for the purpose of making a grant of financial assistance to a State or Territory; and\n    (ba) the grant is not covered by subsection 21(2) of the DisabilityCare Australia Fund Act 2013; and\n    (baa) the grant is not covered by subsection 21(1) of the Medical Research Future Fund Act 2015; and\n    (bab) the grant is not covered by section 36AB of the Future Drought Fund Act 2019; and\n    (bac) the grant is not covered by section 33 of the Disaster Ready Fund Act 2019; and\n    (bad) the grant is not covered by section 30 of the Housing Australia Future Fund Act 2023; and\n    (d) the grant is not covered by section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006; and\n    (e) the grant is not covered by section 298F of the Proceeds of Crime Act 2002.\n  Terms and conditions\n  (2) The terms and conditions on which that financial assistance is granted are to be set out in a written agreement between the Commonwealth and the State or Territory.\n  (3) An agreement under subsection (2) may be entered into by a Minister on behalf of the Commonwealth.\n\n> Note 1A: The provision referred to in paragraph (1)(ba) deals with the channelling, through the Federation Reform Fund, of State/Territory grants payments from the DisabilityCare Australia Fund established by the DisabilityCare Australia Fund Act 2013. For terms and conditions of those grants, see the DisabilityCare Australia Fund Act 2013.\n\n> Note 1AA: The provision referred to in paragraph (1)(baa) deals with the channelling, through the Federation Reform Fund, of State/Territory grants payments from the Medical Research Future Fund established by the Medical Research Future Fund Act 2015. For terms and conditions of those grants, see the Medical Research Future Fund Act 2015.\n\n> Note 1AB: The provision referred to in paragraph (1)(bab) deals with the channelling, through the Federation Reform Fund, of State/Territory grants payments from the Future Drought Fund established by the Future Drought Fund Act 2019. For terms and conditions of those grants, see the Future Drought Fund Act 2019.\n\n> Note 1AC: The provision referred to in paragraph (1)(bac) deals with the channelling, through the Federation Reform Fund, of State/Territory grants payments from the Disaster Ready Fund referred to in the Disaster Ready Fund Act 2019. For terms and conditions of those grants, see the Disaster Ready Fund Act 2019.\n\n> Note 1AD: The provision referred to in paragraph (1)(bad) deals with the channelling, through the Federation Reform Fund, of State/Territory grants payments from the Housing Australia Future Fund established by the Housing Australia Future Fund Act 2023. For terms and conditions of those grants, see the Housing Australia Future Fund Act 2023.\n\n> Note 3: The provision referred to in paragraph (1)(d) deals with the channelling, through the Federation Reform Fund, of certain payments to Western Australia under the Offshore Petroleum and Greenhouse Gas Storage Act 2006.\n\n> Note 4: The provision referred to in paragraph (1)(e) deals with the channelling, through the Federation Reform Fund, of State/Territory grants payments from the Confiscated Assets Account established by the Proceeds of Crime Act 2002. For terms and conditions of those grants, see the Proceeds of Crime Act 2002.","sortOrder":9},{"sectionNumber":"8","sectionType":"section","heading":"Delegation by a Minister","content":"#### 8 Delegation by a Minister\n\n  (1) A Minister may, by writing, delegate any or all of his or her powers under section 7 to:\n    (a) the Secretary of a Department; or\n    (b) an SES employee, or acting SES employee, in a 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 concerned.","sortOrder":10}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":true,"description":"Originally established as a simple mechanism for federal financial assistance grants to States/Territories, the Act has transformed into a central clearing house or 'pass-through' vehicle for numerous distinct national funds. The original 2008 Act has been amended multiple times to accommodate the DisabilityCare Australia Fund (NDIS), Medical Research Future Fund, Future Drought Fund, Disaster Ready Fund, Housing Australia Future Fund, and proceeds of crime confiscated assets. Each addition requires specific exclusions in section 7(1) and corresponding notes, meaning the Act now serves less as an independent grants program and more as administrative infrastructure for other legislative schemes. The core purpose remains grants to States/Territories, but the scope of sources and the complexity of exclusions have expanded significantly beyond the original 2008 intent."},"complexity_factors":["Multiple cross-references to 7 other Acts (DisabilityCare Australia Fund Act 2013, Medical Research Future Fund Act 2015, Future Drought Fund Act 2019, Disaster Ready Fund Act 2019, Housing Australia Future Fund Act 2023, Offshore Petroleum and Greenhouse Gas Storage Act 2006, Proceeds of Crime Act 2002)","Nested exclusion clauses in section 7(1) with 7 separate paragraph exceptions (ba, baa, bab, bac, bad, d, e)","Extensive notes (11 notes total) explaining interactions with other legislation rather than incorporating that content directly","Reliance on external definitions (SES employee, acting SES employee from Acts Interpretation Act 1901; special account from Public Governance, Performance and Accountability Act 2013)","Mechanism has evolved from simple grants vehicle to complex conduit for at least 6 different national funds"],"plain_english_summary":"This law creates a special government bank account called the **Federation Reform Fund**. Its main job is to hold money that the Commonwealth (federal government) gives to States and Territories as grants.\n\n**How it works:**\n- The Fund acts as a central \"bucket\" that receives money from various sources — including regular budget appropriations, transfers from other special funds (like the Medical Research Future Fund, Future Drought Fund, and Housing Australia Future Fund), and other legislation.\n- When the Commonwealth wants to give money to a State or Territory, it comes out of this Fund.\n- **Important condition:** Before any money is handed over, there must be a **written agreement** between the Commonwealth and the State/Territory setting out the terms and conditions of the grant. A Minister can sign these agreements, or delegate that power to senior public servants (SES employees).\n\n**Why it matters:**\nThis law provides a streamlined, legal framework for federal financial assistance to states. Rather than creating a new account for every grant program, the government can channel multiple funding streams through this single Fund. It ensures transparency by requiring formal agreements for most grants, though it excludes certain specific funds (like NDIS payments or drought assistance) that have their own separate rules."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The provided text defines the Fund's scope as making grants of financial assistance to States and Territories and sets procedural requirements for agreements and delegation. No textual indication in this instrument that the statutory scope has been expanded or narrowed from its core purpose as stated here."},"complexity_factors":["Short, focused instrument with limited operative provisions (establishment, purpose, terms, delegation).","Special account status and interaction with the Public Governance, Performance and Accountability Act 2013 (s5 and note).","Multiple cross-references and transfer/credit pathways to and from other statutes and accounts (see notes to s5 referencing several Acts).","Detailed scope exclusions in s7(1) that require checking other Acts to determine applicable terms and conditions.","Requirement that grants be under written agreements centralises contractual terms but delegates discretion to Ministers and their delegates (s7(2)–(3), s8).","Delegation limited to Secretary or SES employees and subject to Ministerial directions, creating layered administrative discretion and potential compliance obligations (s8)."],"plain_english_summary":"Creates the Federation Reform Fund, a Commonwealth special account used to make grants of financial assistance to Australian States and Territories. Money may be credited or transferred into the Fund from various sources and debited to pay grants. Grants must be made under a written agreement between the Commonwealth and the State or Territory, and a Minister may enter agreements or delegate those powers to departmental senior officials (see ss5–8). This sets who pays, who decides, and who must meet funding terms."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The Act has grown significantly beyond its original 2008 scope. It began as a straightforward mechanism for Commonwealth grants to states and territories. Over time, numerous other special funds (DisabilityCare Australia Fund, Medical Research Future Fund, Future Drought Fund, Disaster Ready Fund, Housing Australia Future Fund, and others) have been linked to it as a pass-through vehicle. The fund now serves as a central conduit for a much broader range of policy areas than its original federation reform purpose suggests."},"complexity_factors":["Multiple cross-references to other Acts (at least 8 separate pieces of legislation referenced), requiring readers to consult external laws to understand the full picture","Layered exclusions in section 7 — the terms and conditions rules only apply when grants are NOT covered by a series of other Acts, creating a fragmented framework","The fund acts as a 'pass-through' mechanism for money originating elsewhere, meaning the true legal rules often sit outside this Act entirely","Interaction with the Public Governance, Performance and Accountability Act 2013 adds an administrative governance layer","Delegation provisions introduce a chain of authority (Minister → Secretary/SES employee) that must be tracked to understand who has actual decision-making power"],"plain_english_summary":"The Act creates the Federation Reform Fund, a Commonwealth bank account used to make grants to states and territories. It channels money from annual appropriations and several dedicated pools (eg NDIS‑related, medical research, disaster, housing and similar funds) and from specific receipts like petroleum royalties and confiscated assets. Grants must be given under written agreements signed by a Minister, making the Fund the federal pipeline for large intergovernmental transfers and accountability."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/federation-reform-fund-act-2008","history":"/api/acts/federation-reform-fund-act-2008/history","analysis":"/api/acts/federation-reform-fund-act-2008/analysis","conflicts":"/api/acts/federation-reform-fund-act-2008/conflicts","importantCases":"/api/acts/federation-reform-fund-act-2008/important-cases","documents":"/api/acts/federation-reform-fund-act-2008/documents"}}