This Determination (Federal Financial Relations (General purpose financial assistance) Determination No. 86 (May 2016)) directs the Commonwealth Treasurer to credit specified amounts to the COAG Reform Fund and to pay those amounts to the States on 23 May 2016 as grants of general purpose financial assistance. The Determination is made under section 9 of the Federal Financial Relations Act 2009 (the Act), and it records the Treasurer (Scott John Morrison) making the instrument and the date (18 May 2016) that it was made (see opening text and paragraph 10). Paragraph 5 states the statutory purpose: to provide financial support for the States’ service delivery efforts through general purpose financial assistance “to be used by the States for any purpose.”

Mechanically, the Determination does three things. First, it identifies the legal basis for the action: it is made under s 9 of the Act (opening and paragraph 10). Second, it authorises the crediting of amounts to the COAG Reform Fund prior to payment to the States on a specified payment date (paragraphs 6 and 10; paragraph 10 identifies the payment date as 23 May 2016). Third, it confirms that the total credited for the 2015‑16 financial year, including the amounts in this Determination, does not exceed the statutory debit limit of $5,000,000,000.00 that applies under subsection 9(3) of the Act (paragraph 12 and paragraph 14).

The Determination also records several linking legal elements. It defines key terms (paragraph 3), affirms the requirement that amounts determined under s 9(1) be credited to the COAG Reform Fund (paragraph 6), and notes that the COAG Reform Fund is a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013 (paragraph 7). It directs readers to the Intergovernmental Agreement on Federal Financial Relations (the Intergovernmental Agreement), specifically to Schedule D , Payment Arrangements, as containing the detailed terms and conditions for payments of general purpose financial assistance (paragraph 9 and Schedule 1). Finally, it records that the Determination is declared a legislative instrument but that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply (paragraph 4).

The Determination uses tables and schedules to record the numerical details and supporting material: Table 1 lists the amounts and recipient States for the payment on 23 May 2016 (paragraph 10 and Table 1 image), Table 2 shows cumulative payments for 2015‑16 and the debit limit relationship (paragraphs 12-14 and Table 2 image), Schedule 1 summarises relevant payment arrangements (Schedule 1), and Schedule 2 provides further information and the numeric amounts for the 23 May 2016 payments (paragraph 11 and Schedule 2). The public record in this instrument therefore consists of statutory authorisation, cross‑references to primary legislation and intergovernmental instruments, and the Tables/Schedules for the operational detail.

Official rationale language in the instrument is concise: paragraph 5 states the policy purpose as supporting States’ service delivery through general purpose assistance “to be used by the States for any purpose.” The Determination also identifies specific payments (in Schedule 1) that are compensatory in nature (for example, compensation to Western Australia for lost royalties and assistance to the Australian Capital Territory for municipal services), while preserving the legal character of these transfers as general purpose financial assistance under the Act.

The instrument rests on several discrete statutory and administrative concepts. These concepts structure the flow of funds, the allocation of decision‑making authority, and the control environment that applies to the payments.

• General purpose financial assistance: The instrument repeatedly labels the transfers as “general purpose financial assistance.” Paragraph 5 sets the intended use: funds “to be used by the States for any purpose.” In legal terms within the Determination, general purpose payments are therefore transfers without Commonwealth‑imposed programmatic constraints in the Determination itself, though the instrument points users to the Intergovernmental Agreement and written agreements for the terms and conditions that may apply (paragraphs 8-9).

• COAG Reform Fund and Special Account operation: Paragraph 6 restates the statutory requirement from the Act that amounts determined under subsection 9(1) must be credited to the COAG Reform Fund. Paragraph 7 notes the COAG Reform Fund Act 2008 established the Fund and that it is a Special Account for purposes of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). The combination of those references ties the payment mechanics to public finance rules that apply to Special Accounts under the PGPA framework.

• Written agreement requirement for terms and conditions: The instrument cites subsection 7(2) of the COAG Reform Fund Act 2008 (paragraph 8) which requires the terms and conditions on which financial assistance is granted through the COAG Reform Fund to be set out in a written agreement between the Commonwealth and the State. The Determination further identifies Schedule D , Payment Arrangements of the Intergovernmental Agreement as the source of the terms and conditions for all general purpose financial assistance payments under this Determination (paragraph 9, Schedule 1). That structure places detailed transactional obligations and any performance or accountability conditions (if present) in either the Intergovernmental Agreement Schedule D or in individual written agreements, rather than in the Determination text.

• Statutory debit limit: Subsection 9(3) of the Federal Financial Relations Act 2009 imposes an annual debit limit on the total amount credited to the COAG Reform Fund for general purpose financial assistance; paragraph 12 records the $5,000,000,000.00 cap for the 2015‑16 financial year. The Determination includes Table 2 (image) and explicit confirmation that the cumulative amount determined for payment in 2015‑16 does not exceed the debit limit (paragraph 14). This is a fiscal control mechanism that circumscribes the Treasurer’s exercise of the s 9 power in quantifiable terms for the relevant financial year.

Primary parties affected by the Determination are identified in the instrument and by the legal structure it invokes.

• Commonwealth Treasurer and Commonwealth administration: The Treasurer is the decision‑maker under the Act and the signatory to this Determination (opening signature). The instrument requires amounts determined under s 9(1) be credited to the COAG Reform Fund (paragraph 6) and confirms the Treasurer’s use of the power to credit and pay amounts (paragraph 10). The Commonwealth’s finance and agency officials will be responsible for the mechanics of crediting the Special Account and arranging the payment on the specified date. The COAG Reform Fund is a Special Account under the PGPA Act (paragraph 7), so Commonwealth finance officers must treat the Fund in accordance with Special Account rules.

• The States, including the Australian Capital Territory and the Northern Territory: The Determination expressly uses the defined term “State” and the definition includes the ACT and the NT (paragraph 3). Table 1 lists the States and the amounts each is to receive on 23 May 2016 (paragraph 10 and the Table 1 image). The States are recipients and, per paragraph 5, may use funds “for any purpose.” The COAG Reform Fund Act 2008 requires that the terms and conditions for grants made from the Fund be set out in written agreements between the Commonwealth and each State (paragraph 8). Therefore, State finance and treasury departments must engage to finalise or accept any written agreements and to administer the funds internally.

• Intergovernmental Agreement parties and administrators: The Intergovernmental Agreement is the operational frame for the payment arrangements (paragraph 3 and paragraph 9). Parties to that Agreement , the Commonwealth and the States , are the actors who negotiate and apply Schedule D , Payment Arrangements and any written agreements required under the COAG Reform Fund Act. Officials who administer the Intergovernmental Agreement and Schedule D are directly affected because they hold the source of the detailed terms and conditions.

• Specific interest groups tied to named payments: Schedule 1 identifies payments that have targeted purposes, despite their legal character as general purpose assistance , for example, a compensation payment to Western Australia for lost royalty revenue due to an excise exemption change, and payments for ACT municipal services (Schedule 1 rows). Where the Determination records such payments, beneficiaries and affected industries (for example, petroleum sector stakeholders in Western Australia) may be indirectly affected because the Commonwealth is making compensatory payments whose label is general purpose, yet whose intent is compensatory.

The Determination creates, confirms or points to several concrete duties on public bodies and rights for recipients; these derive from the Act, the COAG Reform Fund Act 2008, the PGPA Act, and the Intergovernmental Agreement as cited in the instrument.

Duties

• Treasurer’s duty to determine and credit amounts under the Act: The Determination is made under section 9 of the Federal Financial Relations Act 2009, which confers the power to determine amounts to be paid as general purpose financial assistance. Paragraph 10 records that, in accordance with subsection 9(1), the amounts in Table 1 are to be credited to the COAG Reform Fund before being paid. This creates a legal duty on the Treasurer to ensure the crediting and payment mechanics are followed.

• Duty to comply with the debit limit: Paragraph 12 recites subsection 9(3) of the Act, which caps total credits for general purpose financial assistance in the 2015‑16 financial year at $5,000,000,000.00. Paragraphs 13-14 report the cumulative totals and confirm compliance. The fiscal duty is therefore to ensure the cumulative credits do not exceed the statutory debit limit for the year.

• Duty to use the COAG Reform Fund framework and written agreements: Paragraphs 6-9 identify a chain of legal duties. Subsection 9(2) of the Act requires amounts determined under s 9(1) to be credited to the COAG Reform Fund (paragraph 6). The COAG Reform Fund Act 2008 makes the Fund a Special Account and requires that terms and conditions for grants through the Fund be contained in a written agreement between the Commonwealth and the State (paragraphs 7-8). This produces duties on Commonwealth officials to ensure written agreements meet the statutory requirements and on State officials to enter any necessary written agreements.

• Duty to follow the Intergovernmental Agreement’s Schedule D payment arrangements: Paragraph 9 states that the terms and conditions for all payments of general purpose financial assistance are provided in Schedule D , Payment Arrangements to the Intergovernmental Agreement. Duty therefore lies on officials to consult, follow and implement the arrangements in Schedule D for these payments.

Rights

• States’ right to receive the amounts specified: The Determination (paragraph 10 and Table 1) specifies amounts to be credited and paid to particular States on 23 May 2016. That specification creates a right in the recipient States to receive the payments as grants of general purpose financial assistance.

The Determination does not itself create explicit criminal or civil penalty provisions, nor does it set out detailed enforcement mechanisms in the text. Instead, the instrument delegates the detailed terms, conditions and any enforcement arrangements to other instruments and agreements it references. The practical enforcement profile therefore depends upon the content of those linked instruments.

What the Determination says

• No penalties in the Determination: The body of the Determination (paragraphs 1-14), Schedule 1 and Schedule 2 do not prescribe sanctions, repayment obligations, interest, or enforcement processes for misuse or non‑compliance. The Determination’s function is to authorise and record payment and to point to the governance framework.

• Terms and conditions to be in written agreements: Paragraph 8 cites subsection 7(2) of the COAG Reform Fund Act 2008 which 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. Paragraph 9 points to Schedule D , Payment Arrangements of the Intergovernmental Agreement as providing those terms and conditions for all payments of general purpose financial assistance under this Determination. Consequently, any clauses concerning repayment, audits, withholding or clawback will be located in those written agreements or in Schedule D.

• Special Account and PGPA Act governance: Paragraph 7 identifies the COAG Reform Fund as a Special Account for purposes of the PGPA Act. The PGPA Act sets out financial management obligations for Special Accounts, including appropriation, accounting, and audit requirements. Enforcement of those obligations is through existing Commonwealth financial governance and audit regimes (internal finance rules, the Auditor‑General’s remit under the Auditor‑General Act for Commonwealth accounts, and PGPA compliance). The Determination does not restate those regimes but anchors the payments within them by reference.

How enforcement will typically be implemented in practice (as implied by the instrument)

• Contractual enforcement via written agreements: Because the COAG Reform Fund Act 2008 requires written agreements to set terms and conditions, any operational enforcement mechanisms (reporting requirements, repayment clauses, dispute resolution, audit rights, and potential sanctions) are most likely to appear in those written agreements or in Schedule D of the Intergovernmental Agreement. Practitioners should therefore review those documents to understand the available remedies and penalties.

This Determination does not operate in isolation; it explicitly cross‑references several statutes and instruments that define the legal environment for federal‑state financial transfers. The instrument relies on and interacts with the Federal Financial Relations Act 2009, the COAG Reform Fund Act 2008, the Intergovernmental Agreement on Federal Financial Relations, the Public Governance, Performance and Accountability Act 2013 (PGPA Act), the Legislative Instruments Act 2003 (disallowance provision), and in Schedule 1 it references the Offshore Petroleum and Greenhouse Gas Storage Act 2006 for a royalty sharing arrangement.

Key legal interaction points recorded in the Determination

• Federal Financial Relations Act 2009 (the Act): The Determination is made under s 9 of the Act (opening and multiple paragraphs). The Act supplies the authority for the Treasurer to determine amounts of general purpose financial assistance and to credit them to the COAG Reform Fund. Paragraph 12 quotes subsection 9(3) of the Act, which sets the annual debit limit , here $5,000,000,000.00 for 2015‑16. Subsection 9(5) is referenced in paragraph 4 to classify the Determination as a legislative instrument even though disallowance is excluded by s 42 of the Legislative Instruments Act.

• COAG Reform Fund Act 2008: Paragraphs 6-8 embed the COAG Reform Fund Act into the mechanism. The COAG Reform Fund Act established the COAG Reform Fund (paragraph 7), made it a Special Account for PGPA purposes (paragraph 7), and (subsection 7(2) quoted in paragraph 8) requires terms and conditions for grants from the Fund to be put in written agreements between the Commonwealth and the State. That statutory requirement shapes how the Determination’s transfers will be governed and documented.

• Public Governance, Performance and Accountability Act 2013 (PGPA Act): The Determination notes that the COAG Reform Fund is a Special Account under the PGPA Act (paragraph 7). This ties the Fund to the financial management and reporting regime contained in the PGPA Act and its subordinate instruments. The PGPA Act prescribes accounting, appropriations and audit disciplines applicable to Special Accounts. The Determination does not reproduce those duties but places the payments within that legal framework.

• Intergovernmental Agreement on Federal Financial Relations and Schedule D , Payment Arrangements: The Intergovernmental Agreement is defined in paragraph 3 and identified as the source of detailed terms and conditions via Schedule D in paragraph 9. Schedule 1 summarises relevant payment titles and links them to Schedule D. Practitioners therefore need to harmonise the Determination with the Intergovernmental Agreement: the Determination authorises the funds and sets the payment date; Schedule D and any written agreements implement the detailed administrative and accountability arrangements.

The Determination presents itself as Federal Financial Relations (General purpose financial assistance) Determination No. 86 (May 2016), with a made date of 18 May 2016. The instrument text does not include any explicit amendment notes, schedules of prior versions, or marginal notes indicating that this Determination amends or is amended by subsequent instruments. The document contains repeated blocks of text (duplicate headings and sections) and duplicated Schedule material, but these appear to be repetitions in the published text rather than recording of legislative amendment events.

What the instrument records about its own commencement and status

• Commencement: Paragraph 2 states the Determination “commences on the day on which this determination is made.” The signature block records the Treasurer and the date 18 May 2016. Therefore the operative commencement date is 18 May 2016.

• Instrument number and dating: The Determination title shows it as No. 86 (May 2016). No later amending instrument is referenced inside the Determination itself.

• Legislative instrument status and disallowance: Paragraph 4 records the statutory interplay with the Legislative Instruments Act 2003 , the Determination is a legislative instrument under subsection 9(5) of the Act but is not subject to disallowance under section 42 of the Legislative Instruments Act. That procedural note is part of the instrument’s status and may affect whether and how it would be amended going forward, depending on the Treasurer’s exercise of power under the Act and any changes to the statutory framework.

Implications for researchers and practitioners seeking amendment history

• No amendments recorded here: The Determination, as supplied, contains no amendment schedule. To determine whether this instrument has been subsequently amended, revoked, or superseded, practitioners should consult the Federal Register of Legislation database and other official legislative instruments registers where amendments, revocations, or replacement determinations would be recorded. The Determination text itself does not provide that follow‑up information.

• Look to the parent Act and subsequent determinations: Changes to the quantum, timing, or legal treatment of general purpose financial assistance could be effected by subsequent determinations under s 9 of the Federal Financial Relations Act, by amendments to the Act itself, or by changes to the Intergovernmental Agreement and its Schedule D. Because the Determination cross‑references those instruments, an amendment history relevant to the substance of the payments may be distributed across multiple instruments rather than confined to a single amending instrument.

The Determination does not include or refer to any litigation history. It contains no citations of cases, no references to past judicial interpretation of the instrument, and no recitation of disputes. The text is purely a statutory‑administrative instrument that records a payment decision, and it does not itself report litigation.

What to expect when searching for litigation history

• No cases named in the instrument: The Determination is silent on litigation. It does not assert that any proceedings have been brought in relation to its content.

• External judicial challenges would be separate: If parties sought judicial review of the Treasurer’s exercise of s 9 powers, such proceedings would be recorded in court records and reported decisions if any. The Determination does not provide any record or claim about such actions. Practitioners who require a litigation history relevant to these payments would therefore need to search federal court decisions, administrative law reports, and legal databases for challenges to determinations under s 9 of the Federal Financial Relations Act 2009, or for disputes concerning specific written agreements under the COAG Reform Fund Act 2008 or Schedule D of the Intergovernmental Agreement.

• Possible arenas for dispute (implied, not recorded): The Determination ties payments to written agreements and to Schedule D. Disputes concerning interpretation of those agreements, the use of funds by a State, or the Commonwealth’s exercise of its statutory power could, in theory, give rise to litigation between a State and the Commonwealth, or to judicial review applications. The Determination itself gives no indication that litigation has occurred or been contemplated.

For the purposes of legal practice, absence of litigation notes in the Determination means that any search for precedent or case law must be conducted in external repositories. The Determination itself does not supply a litigation trail.

This Determination appears straightforward as an instrument authorising payments, but several practical and legal caveats arise from how the instrument is drafted and how it links to other instruments. These are matters practitioners should pay attention to.

1. Tables and numeric amounts are embedded as images: The Determination relies on three tables/images (image.001, image.002, image.003) for the specific quantum and allocation of payments (Table 1, Table 2 and Schedule 2). The text does not transcribe the amounts in the body. When relying on this Determination, verify that the numerical figures are readable, accessible and extracted accurately from the images. If working from a copy where the images are missing or illegible, the instrument’s operative effect may be unclear without consulting the official legislative register where the instrument is published.

2. “General purpose” label vs targeted payments: Paragraph 5 states funds are “to be used by the States for any purpose,” yet Schedule 1 lists payment titles that are compensatory or descriptive (for example, compensation to Western Australia for lost royalty revenue and ACT municipal services). Practitioners must not assume that every item described in Schedule 1 is unconditional in practice; the Determination points to Schedule D and written agreements for terms and conditions (paragraphs 8-9). In short, the legal character may be “general purpose” but operationally there may be specific written agreements or understandings attached to particular payments.

3. Disallowance exemption reduces one parliamentary oversight tool: Paragraph 4 states section 42 of the Legislative Instruments Act 2003 does not apply. The practical effect is the removal of the s 42 disallowance pathway. Users should note this does not eliminate all forms of parliamentary scrutiny, but it does remove a statutory mechanism that applies to many other legislative instruments.

4. Debit limit constraint is annual and cumulative: Paragraph 12 references the $5,000,000,000.00 debit limit for the 2015‑16 financial year. Paragraph 13 notes Table 2 shows the cumulative determined amounts for the year. This cap is binding for the financial year indicated; any further determinations that would push cumulative credits above the limit would conflict with subsection 9(3) absent a statutory change. Practitioners must check cumulative totals across determinations for the same year.

5. Written agreements are essential for full terms and enforcement: Paragraph 8 requires that terms and conditions be set out in written agreements under the COAG Reform Fund Act 2008. Paragraph 9 directs readers to Schedule D , Payment Arrangements. The Determination itself omits operational details on reporting, audit, clawback, or dispute resolution. To understand compliance obligations and rights to enforce or to be enforced against, consult the underlying written agreements and Schedule D.

Compliance obligations under this Determination are distributed across Commonwealth finance officers, State treasuries, and the officials responsible for implementing written agreements and the Intergovernmental Agreement Schedule D arrangements. Below is a practical compliance checklist grounded in the instrument’s text and the statutes it cites.

For Commonwealth agencies (Treasury, Department of Finance and payments authorities)

1. Confirm authority and instrument details

   • Record the Determination as made under s 9 of the Federal Financial Relations Act 2009 (opening and paragraph 10).
   • Verify signature and date (Treasurer Scott John Morrison; 18 May 2016) and the commencement rule: the Determination commences on the day it is made (paragraph 2).

2. Credit to the COAG Reform Fund before payment

   • Subsection 9(2) of the Act requires amounts under s 9(1) be credited to the COAG Reform Fund (paragraph 6). Ensure the correct accounting entries credit the COAG Reform Fund (a Special Account) before scheduling the payment on 23 May 2016 (paragraph 10).

3. Observe PGPA Act Special Account rules

   • Paragraph 7 notes the COAG Reform Fund is a Special Account for purposes of the PGPA Act. Apply PGPA Act rules on receipts, payments, record‑keeping, appropriation authority and reporting for Special Accounts when crediting and debiting the Fund.

4. Verify cumulative debit limit

   • Subsection 9(3) imposes an annual debit limit ($5,000,000,000.00 for 2015‑16 per paragraph 12). Use Table 2 and internal records (paragraph 13 and Table 2 image) to ensure the crediting of amounts does not exceed the statutory limit for the financial year. Document calculations and retain audit trails.

5. Ensure written agreements meet statutory requirements

   • The COAG Reform Fund Act 2008 (subsection 7(2) cited in paragraph 8) requires written agreements capturing terms and conditions for grants. Draft, negotiate and execute written agreements with recipient States where the Act or Schedule D requires or contemplates them. Ensure agreements are consistent with Schedule D , Payment Arrangements (paragraph 9).

6. Maintain publicly accessible records

   • Because the Determination is a legislative instrument (paragraph 4), ensure it and its Tables/Schedules are accessible on the official register in a format that allows exact extraction of numeric figures (the Determination embeds tables as images).