Turn the raw legal text into a practical explanation grounded in Federal Financial Relations (General Purpose Financial Assistance) Determination No. 39 (June 2012).
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 39 (June 2012).
Commencement
2. This determination commences on the day on which this determination is made.
Definitions
3. The following definitions are used throughout this determination:
Act means the Federal Financial Relations Act 2009.
COAG Reform Fund means the COAG Reform Fund established by section 5 of the COAG Reform Fund Act 2008.
Drawing right means a drawing right issued under section 27 of the Financial Management and Accountability Act 1997.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 9(5) of the Act provides that this determination is a legislative instrument, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to this determination.
PArt 2 — Purpose
Provision of financial assistance
5. This determination is made, in accordance with section 9 of the Act, for the purpose of providing financial support for the States’ service delivery efforts through general purpose financial assistance to be used by the States for any purpose.
Terms and conditions
6. Subsection 9(2) of the Act requires that an amount determined under subsection 9(1) must be credited to the COAG Reform Fund.
7. The COAG Reform Fund Act 2008 established the COAG Reform Fund and specifies that it is a Special Account for the purposes of the Financial Management and Accountability Act 1997.
8. Subsection 7(2) of the COAG Reform Fund Act 2008 requires that the terms and conditions on which financial assistance is granted through the COAG Reform Fund are to be set out in a written agreement between the Commonwealth and the State.
9. The terms and conditions for all payments of general purpose financial assistance are provided in ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement. Schedule 1 to this determination provides a summary of the relevant provisions for general purpose financial assistance.
Part 3 — General purpose Financial Assistance
Determination
10. In accordance with subsection 9(1) of the Act, the amounts specified in Table 1 are to be credited to the COAG Reform Fund before being paid on 21 June 2012 to the States specified in that table for the purpose of making a grant of general purpose financial assistance to those States.
Table 1: General purpose financial assistance for payment on 21 June 2012
11. Schedule 2 to this determination provides further information on these payments.
12. The terms and conditions for all payments of general purpose financial assistance are provided in ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement.
Drawing rights limits
13. Subsection 9(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making a grant of general purpose financial assistance must not exceed the total amount covered by drawing rights. In the financial year starting on 1 July 2011 the total drawing right is $1,500,000,000.
14. The amounts specified in Table 2 are the total determined in the 2011‑12 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in
2011-12
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15. The total amount determined for payment of general purpose financial assistance to date in the 2011\-12 financial year does not exceed the general drawing rights limit.