This Determination (No. 87, June 2016) directs the Treasurer to credit specified sums to the COAG Reform Fund and to pay those sums as general purpose financial assistance to the States on 21 June 2016. The payments are unconditional at State level (usable for any purpose) and operate within the Act’s $5 billion debit limit for 2015–16. The instrument implements section 9 of the Federal Financial Relations Act and summarises payment types (royalty and compensation payments, ACT municipal assistance, Snowy Hydro tax compensation).
This Determination, titled Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016), is a Treasurer’s instrument under section 9 of the Federal Financial Relations Act 2009. It performs three mechanical tasks.
First, it specifies that amounts listed in Table 1 are to be credited to the COAG Reform Fund and then paid on 21 June 2016 to the States listed in that table for the purpose of grants of general purpose financial assistance (s10). The instrument therefore authorises a discrete, dated transfer of Commonwealth funds into the COAG Reform Fund and from that Fund to State recipients.
Second, it records and confirms the statutory framing for how those payments must be handled. The Determination repeats the requirement that any amount determined under subsection 9(1) of the Act must be credited to the COAG Reform Fund (s6, referring to s9(2) of the Act). It also identifies the COAG Reform Fund as the Special Account established by the COAG Reform Fund Act 2008 and subject to the Public Governance, Performance and Accountability Act 2013 framework (s7). The Determination therefore places the nominated sums inside the administrative and accountability regime that applies to that special account.
Third, the instrument applies and records a financial control constraint. It notes the statutory debit limit on how much may be credited to the COAG Reform Fund in the 2015-16 financial year, namely that total credits for general purpose financial assistance must not exceed $5,000,000,000.00 (s12, referring to s9(3) of the Act). It lists cumulative totals in Table 2 and states that, including the amounts in this Determination, the total determined to date in 2015-16 does not exceed that debt limit (s13-14).
The Determination includes an express administrative detail about parliamentary oversight: subsection 9(5) of the Act is invoked to classify the instrument as a legislative instrument, but the Determination records that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it (s4). The instrument is signed and dated by the Treasurer, Scott John Morrison, and commences on the day it is made (s1-2). The schedules that accompany the Determination (Schedule 1 and Schedule 2) summarise the payment arrangements that apply and list the specific amounts and ancillary payment purposes; Schedule 1 cross-references Schedule D , Payment Arrangements of the Intergovernmental Agreement on Federal Financial Relations.
Current sections
Direct links to the current provisions in Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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 Public Governance, Performance and Accountability Act 2013.
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 2016 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 2016
11. Schedule 2 to this determination provides further information on these payments.
Debit limit
12. 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 in the financial year starting on 1 July 2015 must not exceed $5,000,000,000.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
14. The total amount determined for payment of general purpose financial assistance to date in the 2015-16 financial year does not exceed the debt limit.
Name of Determination
Name of Determination
Name of Determination
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
Commencement
Commencement
Commencement
2. This determination commences on the day on which this determination is made.
Definitions
Definitions
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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)
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
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.
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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 Public Governance, Performance and Accountability Act 2013.
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 2016 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 2016
11. Schedule 2 to this determination provides further information on these payments.
Debit limit
12. 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 in the financial year starting on 1 July 2015 must not exceed $5,000,000,000.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
14. The total amount determined for payment of general purpose financial assistance to date in the 2015-16 financial year does not exceed the debt limit.
Provision of financial assistance
Provision of financial assistance
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
Terms and conditions
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 Public Governance, Performance and Accountability Act 2013.
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.
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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 Public Governance, Performance and Accountability Act 2013.
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 2016 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 2016
11. Schedule 2 to this determination provides further information on these payments.
Debit limit
12. 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 in the financial year starting on 1 July 2015 must not exceed $5,000,000,000.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
14. The total amount determined for payment of general purpose financial assistance to date in the 2015-16 financial year does not exceed the debt limit.
Determination
Determination
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 2016 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 assis
Table 1: General Purpose financial assistance for payment on 21 June 2016
Table 1: General Purpose financial assistance for payment on 21 June 2016
11. Schedule 2 to this determination provides further information on these payments.
Debit limit
Debit limit
Debit limit
12. 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 in the financial year starting on 1 July 2015 must not exceed $5,000,000,000.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of ge
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
14. The total amount determined for payment of general purpose financial assistance to date in the 2015-16 financial year does not exceed the debt limit.
SChedule 1
SChedule 1
Summary of relevant agreements for general purpose financial assistance
Payment title
Purpose
Relevant agreement
Compensation for impact on royalties of excise amendment
The Commonwealth provides general purpose financial assistance to compensate Western Australia for the loss of royalty revenue resulting from the removal in the 2008-09 Budget of the exemption of condensate from crude oil excise.
Schedule D – Payment arrangements of the Intergovernmental Agreement
Taxation compensation in respect of Snowy Hydro Limited
The Commonwealth provides compensation payments to New South Wales and Victoria, in the form of general purpose financial assistance, for Commonwealth taxes paid by Snowy Hydro Ltd in proportion to the States' shareholdings. Payments are made in accordance with the Snowy Hydro Tax Compensation Deed between the Commonwealth, New South Wales and Victoria. These taxes would have previously been payable to the States through tax equivalence regime payments.
Schedule D – Payment arrangements of the Intergovernmental Agreement
ACT Municipal Services
The Commonwealth provides general purpose financial assistance to the Australian Capital Territory to:• assist in meeting the additional municipal costs which arise from Canberra's role as the national capital; and• compensate the Australian Capital Territory for additional costs resulting from the national capital planning influences on the provision of water and sewerage services.
Schedule D – Payment arrangements of the Intergovernmental Agreement
Royalty payments
— Offshore Petroleum and Greenhouse Gas Storage Act 2006
The Commonwealth provides general purpose financial assistance to Western Australia from royalties payable under the Offshore Petroleum (Royalty) Act 2006 in respect of the North West Shelf oil and gas project off the coast of Western Australia. The Commonwealth collects these royalties because it has jurisdiction over off‑shore areas.These royalties will be shared between the Commonwealth (approximately one third) and Western Australia (approximately two thirds). These payment arrangements are in accordance with section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Schedule D – Payment arrangements of the Intergovernmental Agreement
Summary of relevant agreements for gener
Summary of relevant agreements for general purpose financial assistance
Summary of relevant agreements for general purpose financial assistance
Payment title
Purpose
Relevant agreement
Compensation for impact on royalties of excise amendment
The Commonwealth provides general purpose financial assistance to compensate Western Australia for the loss of royalty revenue resulting from the removal in the 2008-09 Budget of the exemption of condensate from crude oil excise.
Schedule D – Payment arrangements of the Intergovernmental Agreement
Taxation compensation in respect of Snowy Hydro Limited
The Commonwealth provides compensation payments to New South Wales and Victoria, in the form of general purpose financial assistance, for Commonwealth taxes paid by Snowy Hydro Ltd in proportion to the States' shareholdings. Payments are made in accordance with the Snowy Hydro Tax Compensation Deed between the Commonwealth, New South Wales and Victoria. These taxes would have previously been payable to the States through tax equivalence regime payments.
Schedule D – Payment arrangements of the Intergovernmental Agreement
ACT Municipal Services
The Commonwealth provides general purpose financial assistance to the Australian Capital Territory to:• assist in meeting the additional municipal costs which arise from Canberra's role as the national capital; and• compensate the Australian Capital Territory for additional costs resulting from the national capital planning influences on the provision of water and sewerage services.
Schedule D – Payment arrangements of the Intergovernmental Agreement
Royalty payments
— Offshore Petroleum and Greenhouse Gas Storage Act 2006
The Commonwealth provides general purpose financial assistance to Western Australia from royalties payable under the Offshore Petroleum (Royalty) Act 2006 in respect of the North West Shelf oil and gas project off the coast of Western Australia. The Commonwealth collects these royalties because it has jurisdiction over off‑shore areas.These royalties will be shared between the Commonwealth (approximately one third) and Western Australia (approximately two thirds). These payment arrangements are in accordance with section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.
Schedule D – Payment arrangements of the Intergovernmental Agreement
Schedule 2
Schedule 2
Amounts of general purpose financial assistance on 21 June 2016 ($)
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
Commencement
2. This determination commences on the day on which this determination is made.
Definitions
3. The following definitions are used throughout this determination:
Mechanically, the Determination thus authorises specified payments to States, places the funds inside the COAG Reform Fund and the PGPA special account regime, records the statutory debit cap for the relevant year, and identifies the governing written-agreement and Intergovernmental Agreement instruments that set detailed terms and conditions for those payments (ss5-9; Schedule 1). It does not itself prescribe specific spending conditions on State recipients beyond recording that Schedule D to the Intergovernmental Agreement contains the relevant terms, and it does not state any enforcement penalties or compliance sanctions beyond the financial and administrative controls described.
Main concepts
The Determination builds on and references a small set of statutory and intergovernmental concepts which structure how general purpose financial assistance is provided and controlled.
General purpose financial assistance, as described in the Determination, is financial support provided to the States to assist their service delivery efforts and may be used by the States for any purpose (s5). That is the policy object identified in the instrument: the payment is a grant that is not ring‑fenced by the Determination itself. The Determination therefore separates the grant vehicle from any detailed program conditions, instead placing the detailed terms in pre-existing agreements.
The COAG Reform Fund is central. The Determination refers to the Fund as created by section 5 of the COAG Reform Fund Act 2008 and as a Special Account under the Public Governance, Performance and Accountability Act 2013 (s7). Under the Act, amounts determined for general purpose financial assistance must be credited to that Fund before payment is made (s6, invoking subsection 9(2) of the Federal Financial Relations Act 2009). The COAG Reform Fund therefore functions as the Treasury-administered conduit and accountability container for these payments.
Written agreements are the contract mechanism. The COAG Reform Fund Act 2008 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 (s8, citing subsection 7(2) of the COAG Reform Fund Act 2008). The Determination points readers to Schedule D , Payment Arrangements in the Intergovernmental Agreement on Federal Financial Relations for the specific terms and conditions that govern general purpose financial assistance (s9 and Schedule 1). Thus, the grant instrument delegates the detail of conditions to an intergovernmental schedule and bilateral written agreements.
Debit limit governance is embedded. The instrument records the statutory cap on credits to the COAG Reform Fund for general purpose financial assistance in that financial year, $5 billion (s12). It lists cumulative determinations in Table 2 and confirms the current total remains within that cap (s13-14). This mechanism sets an upper budgetary boundary for Commonwealth action under the Act in the relevant financial year.
Parliamentary oversight is adjusted. The Determination states that, although it is a legislative instrument under subsection 9(5) of the Act, subsection 42 of the Legislative Instruments Act 2003 (the usual disallowance mechanism) does not apply to this Determination (s4). That is an explicit statement on the availability of parliamentary disallowance.
Schedules 1 and 2 operationalise the above. Schedule 1 summarises payment purposes that are treated as general purpose financial assistance under the Intergovernmental Agreement Schedule D. It lists a set of established payment categories such as the compensation to Western Australia for the condensate excise change, Snowy Hydro taxation compensation to New South Wales and Victoria, ACT municipal services assistance, and royalty-sharing arrangements under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Schedule 1 table). Schedule 2 contains the itemised amounts for the payments on 21 June 2016 (image references as Table 1 and Schedule 2 images). The Determination itself therefore functions mainly as an authorising and accounting instrument; programmatic specificity is located in the Intergovernmental Agreement’s Schedule D and in the required written agreements.
In short, the main concepts are: (1) authorisation of dated credits/payments for general purpose assistance; (2) routing through the COAG Reform Fund special account; (3) bilateral written agreements and Schedule D for terms and conditions; (4) adherence to a statutory debit limit for the financial year; and (5) an express statement that the instrument is not subject to parliamentary disallowance under the Legislative Instruments Act 2003 (s4). Each of these concepts is implemented by specific clauses in the Determination (notably ss5-14 and the schedules).
Who it affects
The Determination directly involves three institutional groups and a set of financial relationships.
Commonwealth executive decision makers: the Treasurer exercises statutory power under section 9 of the Federal Financial Relations Act 2009 to determine amounts for general purpose financial assistance. This Determination is signed by the Treasurer, Scott John Morrison, and commences on the day it is made (s1-2; signature block). Operationally, the Commonwealth (Treasury or the relevant appropriation and payments function) must credit the COAG Reform Fund with the specified amounts before payment (s6, s10).
The COAG Reform Fund as trustee/account manager: the Fund, established under the COAG Reform Fund Act 2008 and declared a Special Account under the Public Governance, Performance and Accountability Act 2013, receives the credited amounts (s6-7). The COAG Reform Fund therefore holds and disburses the amounts. Administrative obligations attaching to Special Accounts under the PGPA Act will apply, because the Determination explicitly references that status (s7).
States and Territories: the recipients are the States, with the definition of State including the Australian Capital Territory and the Northern Territory (s3). Table 1 lists the specific States and amounts to be paid on 21 June 2016 (s10; Table 1 in the Determination and Schedule 2). The Determination instructs that those credits are to be paid to the specified States for the purpose of making a grant of general purpose financial assistance to those States (s10). The States have the practical right to receive funds and, per s5, to use those funds for any purpose.
Intergovernmental Agreement participants and specific beneficiaries within States: Schedule 1 identifies particular payment titles that are treated as general purpose financial assistance. These include compensation to Western Australia for the impact on royalties from a prior excise amendment, taxation compensation to New South Wales and Victoria in respect of Snowy Hydro Limited (via the Snowy Hydro Tax Compensation Deed), payments to the ACT for municipal services and water and sewerage planning impacts, and royalty arrangements tied to the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and section 75 thereof. Those payment categories impose or reflect particularised relationships between the Commonwealth and individual States and therefore affect those States in a targeted way (Schedule 1).
Parliament and parliamentary processes: the Determination declares that the disallowance mechanism in section 42 of the Legislative Instruments Act 2003 does not apply (s4). That affects parliamentary oversight options, in that a traditional disallowance motion under the Legislative Instruments Act cannot be used to disallow this instrument. The Determination is nevertheless described as a legislative instrument under subsection 9(5) of the Act, so it remains within the statutory category but outside the specific disallowance procedure.
Administrators and legal advisers: public servants who administer the grant and legal advisers who draft or review the required written agreements between the Commonwealth and the States are affected in that the COAG Reform Fund Act 2008 requires those terms to be recorded in written agreements (s8), and the Intergovernmental Agreement’s Schedule D provides the operative payment arrangements and conditions (s9). Financial controllers must also monitor the cumulative crediting against the $5,000,000,000.00 cap for the 2015-16 financial year (s12-14).
Absent groups: private sector service providers and members of the public are not direct recipients under this Determination. The funds are general purpose grants to States and Territories. Because s5 explicitly states that funds are to be used by States for any purpose, private sector contracts or programs funded by those State appropriations may be affected only indirectly via State budget choices.
In short, the instrument moves money from the Commonwealth into the COAG Reform Fund and on to States on specified terms. The Commonwealth executive and Treasury administrators make the determining decisions; the COAG Reform Fund manages the funds within PGPA requirements; States receive broad-purpose grants and must enter written agreements as required by the COAG Reform Fund Act 2008 and Schedule D of the Intergovernmental Agreement; parliamentary disallowance is not available for this instrument.
Key duties and rights
The Determination sets out rights to receive funds and several administrative duties that attach to the Commonwealth and the States. The rights and duties flow from statutory provisions the Determination invokes and from the intergovernmental instruments it references.
Rights
Right of States to receive payment: The Determination specifies that the amounts in Table 1 are to be credited to the COAG Reform Fund and paid on 21 June 2016 to the States specified in that table for the purpose of making a grant of general purpose financial assistance to those States (s10). The relevant States therefore have a concrete entitlement to receive those sums once the Commonwealth credits the COAG Reform Fund.
Right of States to use funds for any purpose: The instrument states the purpose of the Determination is to provide financial support for the States’ service delivery efforts through general purpose financial assistance to be used by the States for any purpose (s5). This establishes a broad right of States to allocate the received funds at their discretion; the Determination itself does not impose ring-fencing.
Duties on the Commonwealth
Duty to credit the COAG Reform Fund first: Subsection 9(2) of the Federal Financial Relations Act requires that an amount determined under subsection 9(1) be credited to the COAG Reform Fund, and the Determination restates this requirement and instructs the crediting to occur prior to payment (s6; s10). The Commonwealth therefore has an administrative duty to move funds via the COAG Reform Fund special account.
Duty to respect the debit limit: The Determination records that subsection 9(3) of the Federal Financial Relations Act provides a statutory cap of $5,000,000,000.00 on total credits for general purpose financial assistance in the 2015-16 financial year (s12). The Commonwealth must ensure cumulative credits do not exceed that amount; the instrument lists cumulative amounts in Table 2 and states the total remains within the cap (s13-14).
Duty to effect payments within PGPA/Special Account arrangements: Because the COAG Reform Fund is a Special Account under the PGPA Act 2013, the Commonwealth must manage credits and payments in accordance with the applicable PGPA account rules and the COAG Reform Fund Act 2008 requirements referenced in the Determination (s7). The Determination itself references these governance frameworks.
Duties on the States
Duty to enter written agreement terms and conditions: 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 (s8, citing subsection 7(2) of the COAG Reform Fund Act 2008). The Determination points to Schedule D of the Intergovernmental Agreement for the terms and indicates Schedule 1 provides a summary (s9). This places a bilateral contractual duty on States to accept and operate under written agreement terms.
Implicit duty to account under written-agreement terms: While the Determination does not specify reporting or audit obligations itself, the requirement that terms and conditions be set out in a written agreement (s8) means that States will be bound by whatever accountability, reporting and use conditions those written agreements and the Intergovernmental Agreement Schedule D impose.
Administrative and procedural obligations
Payment mechanics and timing: The Determination requires crediting to the COAG Reform Fund and payment on a specific date, 21 June 2016 (s10). Treasury administrators must implement that transfer timetable.
Reference to intergovernmental rules: The Determination expressly delegates detailed payment arrangements and conditions to the Intergovernmental Agreement (Schedule D) and to the written agreements required under the COAG Reform Fund Act (s8-9). Practically, administrators and legal teams must consult those instruments to determine precise obligations, timing, conditions precedent, and reporting requirements. The Determination’s Schedule 1 outlines established categories where specific compensatory or royalty-sharing arrangements have already been agreed.
Absence of duties or penalties in the Determination
No penalties prescribed: The Determination does not specify compliance penalties, sanctions or enforcement mechanisms. Duties and remedies, if any, would therefore arise from the written agreements described in s8 and the Intergovernmental Agreement Schedule D, or from the general legal and administrative frameworks that govern Special Account funds under the PGPA Act, rather than from the Determination itself.
Parliamentary procedure implications
No disallowance avenue: The Determination records that s42 of the Legislative Instruments Act 2003 does not apply (s4). The effect on duties of Commonwealth officers and oversight by Parliament is that the usual statutory disallowance process is not available to challenge or disallow this instrument; the Determination itself is still a legislative instrument under subsection 9(5) of the Federal Financial Relations Act 2009.
To summarise, the Determination confers the right to receive and use general purpose financial assistance on the specified States, imposes duties on Commonwealth administrators to credit the COAG Reform Fund and observe the statutory debit limit, and requires that terms and conditions be set out in bilateral written agreements. It does not set out penalties within the instrument and removes the possibility of disallowance under the Legislative Instruments Act 2003.
Penalties and enforcement
The Determination does not create or prescribe express monetary penalties, criminal sanctions, or specified enforcement regimes within its text. Its enforcement and compliance mechanisms are administrative and contractual rather than penal.
No internal sanctioning provisions
The text contains no provision that imposes fines, sanctions, recovery powers or criminal offences on States for non‑compliance with the Determination itself. The instrument’s primary function is to authorise specific payments and to locate those payments within the COAG Reform Fund and the Intergovernmental Agreement framework (ss5-11, Schedule 1 and Schedule 2). Because the Determination delegates terms and conditions to written agreements and to Schedule D , Payment Arrangements of the Intergovernmental Agreement (s8-9), any enforcement rights, remedies or recovery mechanisms will depend on what those agreements and the Intergovernmental Agreement provide. The Determination does not reproduce or summarise enforcement clauses from those instruments.
Administrative accountability under PGPA and Special Account rules
The Determination places the funds into the COAG Reform Fund, a Special Account under the Public Governance, Performance and Accountability Act 2013 (s7). That status triggers the PGPA Act’s governance, control and reporting frameworks for Special Accounts. Enforcement in practice will therefore include standard PGPA account administration: internal controls, audit, appropriation and special account rules applied by the relevant Commonwealth agencies. Any action against improper use of funds by Commonwealth officials would follow PGPA processes and Commonwealth financial management rules. The Determination itself does not specify the mechanics of those PGPA enforcement measures.
Contractual remedies in written agreements
The COAG Reform Fund Act 2008 requires that the terms and conditions on which financial assistance is granted through the COAG Reform Fund are set out in a written agreement between the Commonwealth and the State (s8). That bilateral written agreement is the locus where express compliance obligations, reporting requirements, clawback provisions, and default remedies would be expected to appear. The Determination directs administrators to Schedule D of the Intergovernmental Agreement for the terms and conditions that apply to general purpose financial assistance (s9 and Schedule 1). Enforcement against a State, if required, would therefore be pursued under the rights given in those written agreements and the Intergovernmental Agreement rather than under the Determination.
Parliamentary oversight and disallowance
The Determination is a legislative instrument under subsection 9(5) of the Act, but section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply (s4). That removes the standard parliamentary disallowance procedure for this instrument. The absence of that disallowance route reduces one avenue by which Parliament might directly challenge or rescind the Determination; however, general parliamentary powers of appropriation and scrutiny, Senate estimates processes and other parliamentary mechanisms remain available as political and oversight tools. The Determination itself does not create an alternative parliamentary enforcement mechanism.
Financial control via debit limit
A statutory debit limit operates as a financial control mechanism. Subsection 9(3) of the Federal Financial Relations Act 2009 sets a cap on total amounts credited to the COAG Reform Fund for general purpose financial assistance in the financial year starting 1 July 2015 (s12). The Determination lists cumulative amounts in Table 2 and confirms total credits remain below the $5,000,000,000.00 limit (s13-14). Exceeding that cap would be a statutory breach; enforcement would likely be administrative and budgetary, involving Treasury and the responsible ministers, not criminal. The Determination itself records the cap and the cumulative position but does not prescribe penalties for exceeding the cap.
Judicial enforcement
Nothing in the Determination expressly provides for judicial enforcement or private rights of action against the Commonwealth or a State. Any legal proceedings about the legality of the Determination or its implementation would have to rely on general administrative law principles, statutory interpretation of the Federal Financial Relations Act 2009 and the COAG Reform Fund Act 2008, and the terms of any written agreements. The Determination does not identify or create specific statutory causes of action.
Summary
Enforcement and compliance mechanisms are administrative and contractual. The Commonwealth is required to credit the COAG Reform Fund and observe the statutory debit limit (ss6, 10, 12-14). Detailed compliance obligations, reporting and remedies rest in the written agreements mandated by the COAG Reform Fund Act 2008 and the Intergovernmental Agreement’s Schedule D (s8-9). The Determination itself does not prescribe penalties or sanctions and expressly removes the standard disallowance mechanism (s4), leaving enforcement to the PGPA account rules, bilateral agreements and ordinary legal processes.
How it interacts with other laws
The Determination is an instrument that sits within a network of statutes and intergovernmental arrangements. It cross-references and activates duties and governance arrangements in several other Acts and agreements. The interactions are primarily administrative and contractual.
Federal Financial Relations Act 2009
Primary authorisation: The Determination is made under section 9 of the Federal Financial Relations Act 2009. It invokes subsection 9(1) as the power to determine amounts for general purpose financial assistance and subsection 9(5) to classify the Determination as a legislative instrument (s10; s4 references subsection 9(5)). It also invokes subsection 9(2) indirectly by recording the requirement to credit determined amounts to the COAG Reform Fund (s6). Subsection 9(3) is the source of the debit limit on credits in the financial year starting 1 July 2015, which the Determination restates as $5,000,000,000.00 (s12). The instrument therefore operates as an execution of powers and constraints that the Federal Financial Relations Act places on Commonwealth support for States.
COAG Reform Fund Act 2008
Account and contractual duties: The Determination refers to the COAG Reform Fund established by section 5 of the COAG Reform Fund Act 2008 (s3 definition and s7). It cites subsection 7(2) of that Act to highlight that the terms and conditions on the financial assistance are to be set out in a written agreement between the Commonwealth and the State (s8). By doing so the Determination ties the operation of these payments to the statutory regime governing the Fund and to the requirement for bilateral written agreements. It thus imports any terms and obligations that the COAG Reform Fund Act prescribes for Special Account operations.
Public Governance, Performance and Accountability Act 2013 (PGPA Act)
Special Account governance: The Determination records that the COAG Reform Fund is a Special Account for PGPA Act purposes (s7). That means that credits and payments must comply with the PGPA Act’s rules for Special Accounts, including financial management, reporting and auditing obligations under that Act and its rules. The Determination itself does not restate PGPA provisions but places the payments under that statutory governance umbrella.
Intergovernmental Agreement on Federal Financial Relations
Terms and conditions: The Determination repeatedly points to the Intergovernmental Agreement (IGA) on Federal Financial Relations and, more specifically, to Schedule D , Payment Arrangements, as the source of the terms and conditions for these general purpose payments (s3 definition and s9). Schedule 1 of the Determination provides a summary of relevant arrangements drawn from Schedule D, such as specific compensatory payments and royalty-sharing rules. The Determination therefore operates in tandem with the IGA: the IGA defines how payments should be arranged, and the Determination provides the Commonwealth’s statutory authorisation and financial mechanics to make the specified payments.
Legislative Instruments Act 2003
Parliamentary procedure exemption: The Determination acknowledges that it is a legislative instrument under subsection 9(5) of the Federal Financial Relations Act but records that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it (s4). That interaction removes the standard disallowance process set out by the Legislative Instruments Act. The Determination therefore limits the disallowance oversight pathway that Parliament would otherwise have for generic legislative instruments.
Offshore Petroleum and Greenhouse Gas Storage Act 2006
Royalty-sharing link: Schedule 1 identifies royalty payments tied to the Offshore Petroleum (Royalty) Act 2006 and references section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 as the legal basis for Commonwealth collection and sharing of certain offshore royalties in relation to the North West Shelf project. The Determination therefore intersects with petroleum royalty law to the extent some general purpose payments reflect royalty-sharing arrangements under that Act.
Snowy Hydro Tax Compensation Deed
Taxation compensation arrangement: Schedule 1 refers to compensation payments in relation to taxes paid by Snowy Hydro Limited and states that payments are made in accordance with the Snowy Hydro Tax Compensation Deed between the Commonwealth and New South Wales and Victoria. The Determination connects the federal grant vehicle to obligations and arrangements that arise under that deed and its intergovernmental allocation rules.
Practical implications of these interactions
Delegation of detailed conditions: The Determination intentionally defers programmatic detail and enforcement terms to the IGA’s Schedule D and to the written agreements required under the COAG Reform Fund Act 2008 (s8-9). Users of the Determination need to consult those other instruments to establish precise use‑conditions, audit rights, reporting requirements and remedies.
Financial governance overlay: By crediting funds to the COAG Reform Fund, the Determination routes payments through PGPA Special Account controls, which impose accounting, reporting and audit obligations that affect both Commonwealth administrators and the accounting treatment of the funds.
Parliamentary oversight adjustment: The exemption from disallowance under the Legislative Instruments Act limits that specific form of parliamentary review. The Determination still operates within the statutory frameworks of the Federal Financial Relations Act and the PGPA Act, so other statutory and parliamentary oversight mechanisms remain available.
Cross‑sector obligations: Because Schedule 1 lists payments that arise out of sector‑specific instruments (petroleum royalty laws, Snowy Hydro deeds, municipal service compensations), the Determination coordinates funding with sector-specific legal obligations and pre-existing agreements. Implementation therefore requires review of multiple instruments to ensure legal consistency and to determine administrative obligations.
In sum, the Determination is an implementing instrument that interacts with the Federal Financial Relations Act 2009 to authorise payments, places funds within the COAG Reform Fund subject to the COAG Reform Fund Act 2008 and the PGPA Act 2013, delegates detailed terms to the Intergovernmental Agreement’s Schedule D and to written agreements, and limits disallowance under the Legislative Instruments Act 2003.
Amendment history
The Determination identifies itself as Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016) and records a signature and date, 15 June 2016. The text provided does not contain any express historical amendments, variation clauses, or amendment logs within the instrument itself. It repeats its key provisions and the schedules multiple times within the document, but these repetitions appear to be duplications rather than recorded amendments.
What the instrument records about change and timing
Commencement timing: The Determination contains a commencement provision stating it commences on the day on which it is made (s2). Given the dated signature block (15 June 2016), the operative commencement date is that date.
Financial year context: The Determination expressly places the payments within the 2015-16 financial year context and records the statutory debt limit applicable to credits for that period ($5,000,000,000.00) (s12). The instrument is therefore specific to that financial year and its cumulative crediting position.
Absence of in‑instrument amendment record
No amendment schedule: The Determination does not contain an express section listing prior determinations that it amends or repeals, nor does it contain a schedule listing previous Determinations or a revision history. It does, however, list cumulative amounts "determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination" and includes Table 2 for cumulative payments (s13, Table 2). That provides an accounting history for the financial year but not a legislative amendment history.
Relationship to underlying instruments that may change
External amendment exposure: The Determination depends on the Federal Financial Relations Act 2009, the COAG Reform Fund Act 2008, the Intergovernmental Agreement and the PGPA Act 2013. Amendments to any of those instruments after 15 June 2016 could change the legal environment in which this Determination operates. The Determination does not itself record subsequent amendments to those Acts or the IGA, and the provided text contains no post-issuance amendments to the Determination.
Future variation paths
Governor or Treasurer powers: The Determination is made under section 9 of the Federal Financial Relations Act, which contemplates that the Treasurer may make determinations about amounts. While the Determination itself does not include a clause about future variation, the enabling Act would be the source of the power to make subsequent determinations varying amounts, timing and cumulative totals in other instruments. Any such subsequent determinations would be recorded as separate Determinations under the Act.
Relevance of the COAG Reform Fund and IGA: The terms and conditions that control these payments are located in written agreements and Schedule D of the Intergovernmental Agreement. Those instruments can be renegotiated or amended, which would materially affect how similar payments are made in future. The Determination does not record those intergovernmental amendment processes.
Summary
The Determination itself shows no internal amendment history beyond its signature date and commencement clause. It records cumulative payment totals for the 2015-16 financial year, but does not indicate it amends or is amending prior Determinations. Any substantive changes to how general purpose financial assistance is provided going forward would derive from additional determinations under the Federal Financial Relations Act, from amendments to the COAG Reform Fund Act 2008 or the PGPA Act, or from changes to the Intergovernmental Agreement and related written agreements, none of which are recorded as changes within this Determination’s text.
Litigation history
The Determination’s text does not reference any litigation, judicial review proceedings or court decisions concerning the instrument. The document contains no citations to cases, no record of legal challenges, and no annexes referring to legal disputes.
What the text permits us to state
No litigation mentioned in instrument: There is no mention within the Determination of any existing or past litigation about the Determination’s validity, its specific payments, or its interaction with the Federal Financial Relations Act, the COAG Reform Fund Act 2008, the Intergovernmental Agreement or any other statutory instrument. The absence of reference to litigation in the instrument does not preclude external litigation having occurred, but the provided source contains no record of it.
Potential loci for litigation, not evidenced here
Judicial review of executive action: Given the Determination is a legislative instrument under subsection 9(5) of the Federal Financial Relations Act, legal challenges could theoretically be brought in respect of its validity under administrative law principles or statutory construction of the relevant enabling Act. The Determination does not record such challenges.
Contractual disputes under written agreements: Since the Determination requires terms and conditions to be set in written agreements under the COAG Reform Fund Act 2008 (s8), disputes about compliance with those written agreements could give rise to litigation. No such cases are referenced in the Determination.
Parliamentary remedy limitations: The Determination explicitly states that section 42 of the Legislative Instruments Act 2003 does not apply to it (s4), which removes the statutory disallowance mechanism available for some legislative instruments. Parliament might use other oversight mechanisms or political remedies, but those are not judicial avenues and none are cited in the Determination.
Summary
The Determination contains no litigation history, case references or mentions of court proceedings. The instrument stands as an administrative and financial decision recorded by the Treasurer; any judicial history would need to be sought outside the instrument itself, because it is not recited or summarised in the text provided.
Gotchas
This section highlights points in the Determination that can produce practical, legal or procedural surprises if missed.
No ring‑fencing of State spending
Broad use right: The Determination states the payments are general purpose financial assistance "to be used by the States for any purpose" (s5). Users unfamiliar with the distinction between general purpose and specific purpose payments might assume the Commonwealth can impose tight spending controls. In this instrument the Commonwealth expressly allows States broad discretion to allocate funds once received. The detailed terms and conditions referenced in s8 and s9 are not contained in the Determination itself; practitioners should therefore review the specific written agreements and Schedule D of the Intergovernmental Agreement to confirm any reporting or accountability conditions that may modify this apparent breadth.
Disallowance exemption
No section 42 disallowance: The Determination records that, although it is a legislative instrument under subsection 9(5) of the Act, section 42 of the Legislative Instruments Act 2003 does not apply to it (s4). That removes the usual parliamentary disallowance mechanism. Practitioners should note that the Determination cannot be disallowed under that statutory route; review must therefore rely on other oversight and review mechanisms or on the enabling statutes.
Crediting before payment requirement
Sequence constraint: Subsection 9(2) of the Federal Financial Relations Act requires that amounts be credited to the COAG Reform Fund prior to payment. The Determination repeats that requirement (s6 and s10). Administrators who do not observe the required sequencing could create accounting or legal irregularities under the PGPA rules; the Determination emphasises the required flow through the special account.
Debit limit for the year
Fixed cap: The Determination records a specific statutory cap on the total amount that may be credited to the COAG Reform Fund for general purpose financial assistance in the 2015-16 financial year: $5,000,000,000.00 (s12). Table 2 lists cumulative payments for the year and the Determination explicitly confirms that the total determined to date does not exceed the cap (s13-14). Practitioners should check whether further determinations in the same year will need to account for this cap and track cumulative totals carefully to avoid exceeding it.
Terms and conditions are located elsewhere
Delegated detail: The Determination does not itself set out the operative use, reporting, audit or recovery clauses. Those are required by the COAG Reform Fund Act 2008 to be in a written agreement between the Commonwealth and each State (s8) and are further supplied by Schedule D , Payment Arrangements of the Intergovernmental Agreement (s9 and Schedule 1). Legal advisers must therefore obtain and review the written agreements and Schedule D to advise on compliance obligations, not rely solely on the text of this Determination.
Duplicated material in the Determination
Repetition in the instrument: The provided text includes repeated blocks of the Determination’s provisions and repeated copies of Schedule 1. While this appears to be drafting duplication in the source document rather than substantive amendments, practitioners should ensure they refer to the operative text and the signed instrument as registered to avoid confusion about whether repetitions reflect variations or multiple operative provisions.
Interplay with sectoral instruments
Targeted payments embedded among general ones: Schedule 1 lists targeted payment categories such as Snowy Hydro tax compensation, ACT municipal services compensation, and royalties sharing under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Schedule 1). Those items have sectoral legal bases and pre-existing deeds or statutory rules that may impose additional terms. Practitioners dealing with those specific flows should examine those underlying instruments (for example the Snowy Hydro Tax Compensation Deed and the Offshore Petroleum provision cited in Schedule 1) to identify obligations beyond the general grant vehicle.
Timing sensitivity
Fixed payment date: The Determination specifies that the amounts in Table 1 are to be paid on 21 June 2016 (s10). Failure to make payments by that date could have practical consequences for State budgeting and for alignment with fiscal year closing procedures. Administrators must coordinate to meet the specified date.
No internal penalty regime
No sanction provisions here: Because the Determination does not include penalty clauses, recovery or enforcement powers must be found in the written agreement or underlying Intergovernmental Agreement. Parties expecting immediate statutory recovery powers from the Determination will not find them in the text.
Accounting and audit expectations
PGPA Special Account implications: The COAG Reform Fund’s status as a Special Account under the PGPA Act (s7) triggers PGPA rules for accounting and audit. Practitioners should not assume that the broad "use for any purpose" removes audit expectations or reporting requirements. Those will be specified in the written agreements and the PGPA rules that apply to Special Accounts.
Summary
The prominent practical surprises to watch for are the broad State discretion over funds (s5), the removal of the disallowance pathway (s4), the requirement for crediting to the COAG Reform Fund prior to payment (s6, s10), the year-specific debit cap (s12), and the fact that detailed compliance and enforcement terms are not included in the Determination but are located in written agreements and the Intergovernmental Agreement’s Schedule D (s8-9, Schedule 1). Practitioners should consult the other named instruments and the signed, registered Determination to avoid misreading procedural or substantive obligations.
How to comply
This section sets out practical steps for Commonwealth administrators, State officials, and legal teams to ensure compliance with the Determination’s requirements as recorded in the text.
For Commonwealth administrators (Treasury, Finance and payments offices)
Verify authorising power and instrument details: Confirm that the Determination is operative and signed. The Determination is made under section 9 of the Federal Financial Relations Act 2009 and commences on the day it is made (s1-2); in this case it is signed and dated 15 June 2016.
Credit the COAG Reform Fund first: Before making any payments to States, ensure amounts specified in Table 1 are credited to the COAG Reform Fund, in line with the requirement that amounts determined under subsection 9(1) must be credited to the COAG Reform Fund (s6). Treasury payments must reflect this sequence.
Observe the payment timetable: Make the actual payments to the States listed in Table 1 on the date specified, which is 21 June 2016 (s10). Liaise with payments and banking functions to ensure funds move from the Special Account to State accounts by that date.
Monitor cumulative credits against the debit limit: Keep an accounting record that aggregates all determinations for the 2015-16 financial year and ensure the total credits for general purpose financial assistance do not exceed $5,000,000,000.00, the statutory limit for that year (s12-14). Use Table 2 as the template for cumulative reporting.
Apply PGPA Special Account rules: Because the COAG Reform Fund is a Special Account for PGPA purposes (s7), manage credits, debits, record-keeping, and reporting under the PGPA Act 2013 and relevant financial management rules. Ensure audit trails and compliance documentation are prepared in accordance with PGPA requirements.
Ensure written agreements are in place: Coordinate with the relevant legal office to make sure written agreements containing the terms and conditions required by the COAG Reform Fund Act 2008 are in effect with each State prior to or contemporaneously with payments (s8). Even though the Determination authorises the payment, the COAG Reform Fund Act requires those written agreements.
Coordinate with Intergovernmental Agreement terms: Confirm that the terms in Schedule D , Payment Arrangements of the Intergovernmental Agreement are implemented and reflected in the written agreements and payment letters (s9; Schedule 1 summarises relevant arrangements). For sectoral payments (royalty sharing, Snowy Hydro compensation, ACT municipal services), ensure the specialised arrangements are reconciled with the payment.
For State officials and finance/legal officers
Confirm receipt and accounting treatment: Confirm that the State’s treasury or relevant agency receives the payment on 21 June 2016 and records it appropriately in State accounts. Treat the receipt as general purpose financial assistance unless the bilateral written agreement specifies different reporting.
Review and sign written agreement terms: Ensure a written agreement with the Commonwealth exists that sets out the terms and conditions for the assistance, as required by subsection 7(2) of the COAG Reform Fund Act 2008 and referenced in the Determination (s8). Legal and finance teams should review these documents to understand reporting, audit and any clawback or accountability clauses.
Assess internal appropriation and allocation rules: Because the Determination permits the State to use funds for any purpose (s5), State accountants must determine how to appropriate the incoming funds within the State budget and whether to allocate them to recurring spending, one-off items or reserve funds consistent with State fiscal rules.
Prepare for PGPA‑linked reporting where applicable: While the PGPA Act governs Commonwealth Special Accounts and not State accounts, the written agreement may require States to provide certain financial reporting or acquit funds to the Commonwealth. Anticipate and plan for any reporting or audit obligations stipulated in the written agreement or Schedule D of the IGA.
For sector‑specific payments, consult underlying instruments: If the payment is for a targeted matter listed in Schedule 1 (for example Snowy Hydro taxation compensation or royalty arrangements under the Offshore Petroleum Act), coordinate with the State agencies responsible for those sectors to apply any special conditions or account for the funds according to any sectoral deeds, such as the Snowy Hydro Tax Compensation Deed.
Cross‑jurisdictional practices and legal steps
Document compliance and controls: Both Commonwealth and State parties should retain contemporaneous documentation evidencing the credit to the COAG Reform Fund, payment date, bank transfer confirmations, signed written agreements and any correspondence about use of the funds.
Maintain audit-ready records: Given the PGPA Special Account status and likely audit interest, maintain records that will satisfy audits under the PGPA framework and any audit clauses in the written agreements and the Intergovernmental Agreement.
Legislative and parliamentary awareness: Note that the Determination is not subject to disallowance under section 42 of the Legislative Instruments Act 2003 (s4). For parliamentary reporting or inquiries, prepare briefing materials that explain the legal basis under section 9 of the Federal Financial Relations Act and the bilateral written agreements required under the COAG Reform Fund Act.
Coordinate timing with financial year processes: Because the Determination is placed in the 2015-16 financial year context and references a $5,000,000,000.00 cap, ensure that budget officers in both Commonwealth and State jurisdictions reconcile these payments with year-end accounts and with any other determinations affecting the same cap (s12-14).
Seek legal advice on ambiguous items: If the written agreement or Schedule D has ambiguous or novel clauses affecting reporting or conditions, seek legal advice to determine scope of obligations and remedies; the Determination itself intentionally defers detailed conditions to those documents (s8-9).
Summary checklist
Commonwealth: credit COAG Reform Fund first; ensure payment on 21 June 2016; confirm cumulative totals remain below the $5 billion cap; implement PGPA Special Account rules; ensure written agreements and Schedule D terms are applied.
States: confirm receipt; sign/comply with written agreement terms; account for funds under State budget rules; prepare reporting and audit material if required by the written agreements.
Following these steps will align administrative action with the Determination’s requirements as stated in ss5-14 and in Schedules 1 and 2.
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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 Public Governance, Performance and Accountability Act 2013.
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 2016 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 2016
11. Schedule 2 to this determination provides further information on these payments.
Debit limit
12. 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 in the financial year starting on 1 July 2015 must not exceed $5,000,000,000.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
14. The total amount determined for payment of general purpose financial assistance to date in the 2015-16 financial year does not exceed the debt limit.
Name of Determination Name of Determination
Name of Determination
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
Commencement Commencement
Commencement
2. This determination commences on the day on which this determination is made.
Definitions Definitions
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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) Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
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.
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 87 (June 2016).
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.
Intergovernmental Agreement means the Intergovernmental Agreement on Federal Financial Relations that took effect on 1 February 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 Public Governance, Performance and Accountability Act 2013.
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 2016 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 2016
11. Schedule 2 to this determination provides further information on these payments.
Debit limit
12. 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 in the financial year starting on 1 July 2015 must not exceed $5,000,000,000.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2015-16 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2015-16
14. The total amount determined for payment of general purpose financial assistance to date in the 2015-16 financial year does not exceed the debt limit.
Provision of financial assistance Provision of financial assistance
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 Terms and conditions
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 Public Governance, Performance and Accountability Act 2013.
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.