This Determination requires the Treasurer to credit specified sums to the COAG Reform Fund and pay them on 21 July 2016 to the States as general purpose financial assistance to be used by the States for any purpose (ss5, 10). The Commonwealth supplies the cash and the States receive unconditional grants.
Payments must be routed through the COAG Reform Fund and governed by written agreements and Schedule D of the Intergovernmental Agreement; a $2,083,333,333 debit limit for 2016–17 applies (ss6–9, 12).
This Determination, made by the Treasurer on 19 July 2016 under section 9 of the Federal Financial Relations Act 2009, specifies amounts to be credited to the COAG Reform Fund and then paid to particular States as general purpose financial assistance on 21 July 2016 (see the opening signature block and para 10). It steps through the mechanics the Commonwealth uses to move those amounts: the Treasurer determines amounts under the Act, those amounts must be credited first to the COAG Reform Fund (paras 6-7), and payments are then made to States for the purpose of making grants of general purpose financial assistance (para 10). The instrument records that the payments and their purposes are governed by the Intergovernmental Agreement on Federal Financial Relations (the IGA), with payment arrangements set out in Schedule D to the IGA; the Determination itself includes Schedule 1 (a summary of specific payment types and relevant agreements) and Schedule 2 (which provides further information on the specific payments and reproduces Table 1 and Table 2) (paras 8-11).
Mechanically, the Determination does four things, all explicitly stated in the text:
Confirms that it is a legislative instrument made under s 9 of the Federal Financial Relations Act 2009 (opening paragraph and para 4).
States that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to this Determination (para 4).
Directs that specified amounts (listed in Table 1) be credited to the COAG Reform Fund and paid on 21 July 2016 to named States to enable grants of general purpose financial assistance (para 10 and the Table 1 reference).
Records the statutory debit limit applicable to the financial year 2016-17 for such credits to the COAG Reform Fund ($2,083,333,333.00) and states that cumulative determinations to date in 2016-17 do not exceed that debit limit (paras 12-14).
Current sections
Direct links to the current provisions in Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 2016).
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 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 July 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 July 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 2016 must not exceed $2,083,333,333.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2016-17
14. The total amount determined for payment of general purpose financial assistance to date in the 2016\-17 financial year does not exceed the debit limit.
Name of Determination
Name of Determination
Name of Determination
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 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. 88 (July 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 July 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 July 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 2016 must not exceed $2,083,333,333.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2016-17
14. The total amount determined for payment of general purpose financial assistance to date in the 2016\-17 financial year does not exceed the debit 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. 88 (July 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 July 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 July 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 2016 must not exceed $2,083,333,333.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2016-17
14. The total amount determined for payment of general purpose financial assistance to date in the 2016\-17 financial year does not exceed the debit 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 July 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 July 2016
Table 1: General Purpose financial assistance for payment on 21 July 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 2016 must not exceed $2,083,333,333.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2016-17 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 2016-17
Table 2: Total cumulative payments of general purpose financial assistance in 2016-17
14. The total amount determined for payment of general purpose financial assistance to date in the 2016\-17 financial year does not exceed the debit 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 July 2016 ($)
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 2016).
Commencement
2. This determination commences on the day on which this determination is made.
Definitions
The Determination expressly characterises the assistance as general purpose, intended to support the States’ service delivery efforts and to be used by States for any purpose (para 5). It also identifies specific categories of payments summarised in Schedule 1 , for example, compensation to Western Australia for lost royalty revenue arising from an excise amendment, Snowy Hydro taxation compensation to New South Wales and Victoria under a deed, municipal services payments to the Australian Capital Territory and royalty-sharing arrangements concerning offshore petroleum revenues under the Offshore Petroleum (Royalty) Act 2006 (Schedule 1). The instrument repeats administrative and definitional material (paras 2-4), states it commences on the day it is made (para 2), and records that Schedule 2 contains further details of the payments (para 11).
By design, the Determination sets the Commonwealth’s allocation and payment mechanics without prescribing uses at the State level (general purpose), while locating the contractual/administrative terms in the IGA and in any bilateral or multilateral written agreements required by the COAG Reform Fund Act 2008 (paras 6-9).
Main concepts
The Determination rests on a small set of statutory and contractual concepts that structure how federal payments flow to States. Those concepts are stated in the instrument and the schedules; below each is identified and linked to the textual source.
Determination under s 9 of the Federal Financial Relations Act 2009. The instrument is an exercise of the Treasurer’s power under s 9 of that Act (opening paragraph; para 10). The Act (as quoted by the Determination) contemplates the Treasurer identifying amounts to be credited to the COAG Reform Fund and paid to States.
Legislative instrument and disallowance exemption. The Determination is a legislative instrument (para 4) but, per subsec 9(5) of the Act as quoted, section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply (para 4). That means the instrument is not subject to parliamentary disallowance procedure specified in s 42 , the Determination records that exemption.
COAG Reform Fund as Special Account and payment vehicle. The COAG Reform Fund is the special account established under the COAG Reform Fund Act 2008 (paras 6-7). The Determination requires amounts determined under s 9(1) of the Act be credited to the COAG Reform Fund before payment (para 6). The COAG Reform Fund Act is cited as establishing the Fund and specifying it is a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013 (para 7).
Written agreement requirement for terms and conditions. Subsection 7(2) of the COAG Reform Fund Act 2008 (as cited in the Determination) requires that the terms and conditions for financial assistance granted through the COAG Reform Fund be set out in a written agreement between the Commonwealth and the State (para 8). The Determination points to Schedule D , Payment Arrangements of the Intergovernmental Agreement on Federal Financial Relations as providing the terms and conditions for all payments of general purpose financial assistance (para 9).
General purpose financial assistance. The Determination’s stated purpose is to provide financial support for States’ service delivery efforts through general purpose financial assistance to be used by States for any purpose (para 5). The concept here is fiscal flexibility for the recipient State: the funds are not ring‑fenced by the Determination itself.
Debit limit for the financial year. The instrument records the statutory cap on the total amount that may be credited to the COAG Reform Fund for general purpose financial assistance in the 2016-17 financial year: $2,083,333,333.00, as provided by subsection 9(3) of the Act (para 12). The Determination then lists cumulative amounts determined in the year in Table 2 and records that the total does not exceed the debit limit (paras 13-14).
Specific payment categories and underlying agreements. Schedule 1 summarises particular payment titles and their purposes and cites the relevant agreement for each. Examples spelled out in Schedule 1 include payments to compensate WA for lost royalty revenue from an excise amendment, Snowy Hydro taxation compensation for NSW and Victoria (via the Snowy Hydro Tax Compensation Deed), ACT Municipal Services payments to the Australian Capital Territory, and royalty-sharing payments under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Schedule D of the IGA and the Offshore Petroleum Act s 75 are cited in Schedule 1).
Together these concepts mean the Determination is an instrument that records and operationalises a set of Commonwealth-to-State transfers for specified purposes and categories, prescribes the administrative route for those transfers (credit to COAG Reform Fund, then payment), relies on existing written agreements and the IGA for operational terms, and operates within a statutory annual cap.
Who it affects
The Determination directly involves three institutional actors and indirectly affects others through their fiscal positions and administrative obligations.
Treasury/Treasurer. The Treasurer is the decision-maker who makes the Determination (opening signature and para 10). Operationally, the Commonwealth (through Treasury) is required to credit the determined amounts to the COAG Reform Fund and to effect the payments on the specified date (para 10). Treasury therefore bears the administrative responsibility for ensuring credits and payments take place in accordance with the statutory debit limit (para 12) and for ensuring that the mechanics of special account governance apply (para 7).
The COAG Reform Fund. The Fund is the conduit: amounts determined under s 9(1) must be credited to the COAG Reform Fund (para 6). The Fund is established under the COAG Reform Fund Act 2008 and specified as a Special Account under the PGPA Act (para 7). That establishes governance and reporting frameworks for the funds while holding them prior to payment to States.
States (including ACT and NT). The recipients are the States named in Table 1 and described in Schedule 1 (paras 10-11). The Determination explicitly defines “State” to include the Australian Capital Territory and the Northern Territory (para 3). States are the ultimate beneficiaries of the grants and receive general purpose financial assistance that may be used for any purpose (para 5). Specific payments in Schedule 1 identify Western Australia, New South Wales, Victoria and the Australian Capital Territory as recipients of particular categories of payments.
Indirectly affected parties and mechanisms:
State service delivery and budget-making. Because the assistance is general purpose (para 5), State Treasuries and budgeting processes will be affected: the funds increase a State’s fiscal capacity and can be allocated within State budgets to affect service delivery, capital projects, or tax/fee choices. That fiscal flexibility can influence private parties that contract with States or participate in regulated markets, though the Determination itself contains no direction on how States must use the monies.
Parties to specific agreements. Some payments are governed by separate deeds or legislative provisions. For example, Snowy Hydro taxation compensation payments are made in accordance with the Snowy Hydro Tax Compensation Deed between the Commonwealth, New South Wales and Victoria (Schedule 1). The Offshore Petroleum and Greenhouse Gas Storage Act 2006 (section 75) is cited as providing payment arrangements for certain royalty payments to Western Australia (Schedule 1). Those agreements and legislative provisions create further rights and obligations for those particular States and for entities affected by those arrangements.
Commonwealth budget and taxpayers. The costs of the payments are borne by the Commonwealth consolidated revenue as credits to the COAG Reform Fund. The instrument notes a statutory debit limit for crediting the Fund in the 2016-17 year (para 12), which constrains the Commonwealth’s fiscal exposure for this category of transfers in that year.
Who does not get new obligations or powers under this instrument: private parties and third-sector entities are not assigned compliance duties by the Determination itself; its operation is between Commonwealth and States and relies on pre-existing agreements. The Determination does not create criminal or civil penalties in its text for recipients (see “Penalties and enforcement” below).
Key duties and rights
The Determination sets out a small number of express duties and records particular rights. These are drawn directly from the instrument’s text and the statutory provisions it cites.
Commonwealth duties (as recorded in the Determination)
Make the Determination under s 9 of the Federal Financial Relations Act 2009. The Treasurer performs this statutory function by specifying amounts to be credited and paid (opening paragraph; para 10).
Credit determined amounts to the COAG Reform Fund prior to payment. The Determination restates the statutory requirement that amounts under subsection 9(1) be credited to the COAG Reform Fund (para 6).
Ensure credits and payments do not cause the COAG Reform Fund credits for general purpose financial assistance in the 2016-17 year to exceed the statutory debit limit of $2,083,333,333.00 (para 12). The Determination records cumulative totals in Table 2 and expressly states that the total determined does not exceed the limit (para 14).
Apply the terms and conditions required by the COAG Reform Fund Act 2008 through written agreements with States. The COAG Reform Fund Act requires terms and conditions to be set out in a written agreement between Commonwealth and State (para 8), and the Determination points to Schedule D of the IGA as providing the terms and conditions for payments of general purpose assistance (para 9).
Commonwealth rights
Use of the COAG Reform Fund and the special-account architecture under the PGPA Act 2013. The Determination invokes the COAG Reform Fund as the statutory vehicle (para 7), which by operation of the PGPA Act imposes certain governance and reporting rights and obligations on the Commonwealth in relation to that special account (para 7).
State duties and rights
Right to receive payments specified in Table 1 on 21 July 2016, as recorded (para 10 and Table 1 reference). Schedule 1 specifies categories and legal bases for particular payments to named States.
Obligation (where applicable) to accept payments subject to terms and conditions set out in written agreements required by the COAG Reform Fund Act 2008 and in Schedule D of the IGA. Although the funds are described as general purpose (para 5), the COAG Reform Fund Act requires that the terms and conditions for assistance granted through the Fund be recorded in written agreements (para 8); Schedule D to the IGA is the place where those terms and conditions are set out (para 9). The Determination itself does not list bilateral conditions, but it makes clear that such written agreements govern the payments.
Operational duties (administrative)
Treasury must ensure that amounts are credited and paid on the date specified (para 10) and that records in Table 2 are maintained to monitor compliance with the debit limit (paras 12-14).
Where payments arise from other instruments or deeds (for example, the Snowy Hydro Tax Compensation Deed), the Commonwealth and the relevant States must observe the terms of those arrangements as the basis for the payments (Schedule 1).
Notably absent from the Determination
The Determination does not itself impose behavioural conditions on how States must spend the funds; it records that the assistance is “general purpose” and can be used by States for any purpose (para 5). Any restrictions or reporting requirements therefore derive from the written agreements and the IGA’s Schedule D, not from the Determination text itself (paras 8-9).
The Determination does not specify penalties, sanctions, or enforcement mechanisms within its text for misuse of funds or non‑compliance (see “Penalties and enforcement” below).
In sum, the Determination creates duties primarily for Commonwealth administrative entities to credit and pay, and records rights for States to receive general purpose funds; it defers to written agreements and the IGA for the operational conditions that attach to the payments.
Penalties and enforcement
The Determination itself contains no express civil or criminal penalties and does not set out an enforcement regime in its text. The instrument is focused on the mechanics of crediting the COAG Reform Fund and transferring funds to States on the specified date, and it delegates terms and conditions to other instruments and agreements. Key points from the Determination that shape enforcement consequences are:
No penalties in the Determination text. Nowhere in the body of the Determination or in its Schedules does the instrument impose fines, criminal sanctions, or administrative penalties for misuse of the funds. It records the payment mechanics and references existing agreements for terms and conditions (paras 6-9, 10, Schedule 1).
Enforcement and conditions lie in written agreements and the IGA. Subsection 7(2) of the COAG Reform Fund Act 2008 (as cited in para 8) requires that terms and conditions be set out in a written agreement between the Commonwealth and the State. The Determination points readers to Schedule D , Payment Arrangements of the Intergovernmental Agreement as containing the terms and conditions for all general purpose financial assistance (para 9). Therefore, any enforcement mechanisms, eligibility conditions, reporting obligations or repayment obligations applicable to particular payments will be found in those written agreements or in the IGA’s Schedule D. The Determination’s role is administrative and declaratory; it does not itself prescribe enforcement tools.
PGPA special account governance. The COAG Reform Fund is a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013 (para 7). The PGPA Act contains governance, accountability and reporting requirements for Special Accounts. Although the Determination does not restate those PGPA provisions, the designation of the COAG Reform Fund as a Special Account brings PGPA obligations into play for the Commonwealth in relation to the Fund’s operation. Those PGPA obligations (not reproduced in the Determination) typically include accounting, appropriations, reporting and expenditure control requirements, which function as administrative checks on the use of public money.
Parliamentary oversight limited for this Determination. The instrument records that subsection 9(5) of the Federal Financial Relations Act 2009 makes it a legislative instrument but that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it (para 4). The immediate legal consequence in the Determination is that the parliamentary disallowance procedure under s 42 (which allows Parliament to disallow some legislative instruments) is not available for this instrument. The Determination does not itself identify alternative parliamentary scrutiny mechanisms; it simply records the statutory exemption.
Statutory debit limit as a control. The Determination records the debit limit for the financial year: the total amount credited to the COAG Reform Fund for general purpose assistance in 2016-17 must not exceed $2,083,333,333.00 (para 12). The Determination then records cumulative amounts in Table 2 and states they do not exceed the debit limit (paras 13-14). The debit limit operates as a statutory control over aggregate Commonwealth expenditure for this category in the year.
Practical effect for enforcement and compliance: anyone seeking to enforce obligations or recover funds will need to look to the written agreements required by the COAG Reform Fund Act and to the IGA’s Schedule D for contractual or administrative remedies. The Determination itself provides the administrative authority to transfer funds but leaves compliance and enforcement mechanics to those other instruments and to the PGPA governance framework for the special account.
How it interacts with other laws
The Determination references and operates within a network of statutes and intergovernmental instruments; it does not operate in isolation. The text expressly cites and relies on the following legal instruments and provisions, and those interactions drive how the Determination functions administratively and legally.
Federal Financial Relations Act 2009, section 9 (enabling power). The Determination is made under s 9 of that Act (opening paragraphs). The Act supplies the statutory authority for the Treasurer to determine amounts to be credited to the COAG Reform Fund for grants to States. The Determination quotes or invokes subclauses of s 9, including subsec 9(2), which requires that amounts determined under s 9(1) be credited to the COAG Reform Fund (para 6), and subsec 9(3), which sets the debit limit for credits in the 2016-17 year (para 12). Subsection 9(5) is also referenced to note that the Determination is a legislative instrument but that it is exempt from s 42 disallowance (para 4).
COAG Reform Fund Act 2008. The Determination identifies the COAG Reform Fund as established by s 5 of the COAG Reform Fund Act 2008 (para 3 definition) and notes the Act’s direction that terms and conditions on which assistance is granted through the Fund are to be set out in written agreements between the Commonwealth and the State (para 8, citing subsection 7(2) of the COAG Reform Fund Act 2008). The COAG Reform Fund operates as the budgetary conduit and imposes the written agreement requirement.
Public Governance, Performance and Accountability Act 2013 (PGPA Act). The Determination records that the COAG Reform Fund is a Special Account for the purposes of the PGPA Act 2013 (para 7). That classification imports the PGPA Act’s framework for the governance, reporting and expenditure control of special accounts, meaning the operation of the COAG Reform Fund is subject to PGPA obligations (the Determination references this but does not reproduce PGPA provisions).
Intergovernmental Agreement on Federal Financial Relations (IGA). The Determination invokes the IGA as the overarching framework that provides Schedule D , Payment Arrangements, which in turn provides the terms and conditions for all payments of general purpose financial assistance (paras 3 and 9). The IGA (which took effect on 1 February 2009) is the contractual framework between Commonwealth and States for transfers and collaboration on policy and service delivery; the Determination defers to Schedule D of the IGA for operational payment rules.
Snowy Hydro Tax Compensation Deed. Schedule 1 identifies that taxation compensation payments in respect of Snowy Hydro Limited are made in accordance with the Snowy Hydro Tax Compensation Deed between the Commonwealth, New South Wales and Victoria (Schedule 1 entry). The Determination thus interacts with that deed for the specific payment stream.
Offshore Petroleum and Greenhouse Gas Storage Act 2006 (and Offshore Petroleum (Royalty) Act 2006). Schedule 1 refers to royalty payments derived from the Offshore Petroleum (Royalty) Act 2006 in respect of the North West Shelf project and states that payment arrangements are in accordance with section 75 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006. That shows the Determination interacts with offshore royalty legislation when royalty revenues collected by the Commonwealth are shared with Western Australia via general purpose assistance.
Legislative Instruments Act 2003, section 42 (disallowance). The Determination records that section 42 does not apply to this instrument (para 4). That affects the parliamentary oversight mechanism available for this legislative instrument, as recorded in the Determination.
Practical interactions and implications:
The Determination instructs fiscal mechanics, but operational conditions and enforcement derive from the IGA’s Schedule D and from written agreements required under the COAG Reform Fund Act 2008 (paras 8-9). Therefore, anyone analysing obligations needs to read those instruments alongside the Determination.
The classification of the COAG Reform Fund as a Special Account under the PGPA Act 2013 means that PGPA governance and reporting obligations apply to the Fund’s operation, even though those obligations are not restated in the Determination (para 7).
Where payments are linked to specific deeds or provisions of other Acts (Snowy Hydro deed, Offshore Petroleum Act s 75), the Determination works with those instruments to implement required payments; the Deeds/Acts may create additional substantive entitlements or conditions that sit alongside the Determination.
The Determination therefore functions as a connecting instrument: it relies on the Federal Financial Relations Act for authority, routes funds through the COAG Reform Fund (and thus the PGPA framework), and points to the IGA and to specific deeds or Acts for operational terms.
Amendment history
The Determination itself records its making and commencement but does not list any subsequent amendments within the text provided. From the instrument’s own statements the amendment history is as follows.
Original making and commencement. The Determination is titled “Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 2016)”, and the signature block shows it was made by SCOTT JOHN MORRISON, Treasurer, dated 19 July 2016 (opening table). It expressly states that the Determination commences on the day it is made (para 2).
No amendments recorded in this instrument. The body of the Determination does not include any amending provisions or notes of amendment. It contains material that is repeated in places (multiple recitations of Part 1, Part 2 and Part 3 material, and repeated Schedule content). The repeated text appears to be a duplication of the same provisions rather than discrete amendments; the Determination does not present those repeats as modifications or later variations. The instrument does not record a modification date or identify repeals or supersessions of earlier determinations in its text.
Relationship to annual debit limit. The Determination records the statutory debit limit for the 2016-17 financial year , $2,083,333,333.00 , which derives from subsection 9(3) of the Federal Financial Relations Act 2009 (para 12). That statutory cap is a feature of the enabling Act rather than an amendment of this Determination, but it constrains the aggregate quantum for the year and is therefore a relevant fixed parameter for the 2016 determination.
Schedules and Tables. The Determination incorporates Schedule 1 (summary of relevant agreements) and Schedule 2 (amounts of general purpose financial assistance on 21 July 2016 and Table 1/Table 2). The Schedules are presented as part of the instrument, and Schedule 2 reproduces the payment amounts for the specified date and the year-to-date totals; the Determination records that the totals do not exceed the debit limit (paras 11, 13-14). The text in the Determination does not indicate that those Schedules are provisional or subject to later modification within the instrument itself.
For a complete amendment history beyond the text in this Determination, one would have to consult the Federal Register of Legislation or consolidated legislative instruments to see whether later determinations or legislative changes altered the operation or replaced Determination No. 88. The Determination as provided shows only the single-making event on 19 July 2016 and no in-text amendments.
Litigation history
The Determination does not record any litigation, and no cases are named or cited in the instrument. The text provides no account of judicial review, litigation outcomes, or disputes about the particular payments it prescribes.
Relevant points drawn from the Determination:
No judicial proceedings or case names are referenced in the Determination or its Schedules. The instrument confines itself to statutory references, administrative arrangements and the specification of amounts and recipients (opening paragraphs; paras 5-14; Schedules 1-2).
The Determination asserts an exemption from disallowance under section 42 of the Legislative Instruments Act 2003 (para 4). That is a parliamentary oversight mechanism, not a judicial one; the instrument does not discuss courtroom challenges or the availability of judicial review rights. The Determination supplies the factual record of the Treasury’s decision and the legal basis under s 9 of the Federal Financial Relations Act 2009.
Given the absence of litigation references in the text, any researcher looking for litigation concerning this Determination must search external judicial databases or decisions for cases that mention “Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 2016)” or the relevant payments. The Determination itself contains no litigation history to analyse.
Gotchas
The Determination contains some features and operational details that could produce confusion or unintended consequences if not noted; below are specific “gotchas” explicitly traceable to the instrument.
Exemption from parliamentary disallowance. The instrument records that subsection 9(5) of the Federal Financial Relations Act 2009 makes it a legislative instrument but that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply (para 4). That means the normal parliamentary disallowance mechanism under s 42 is not available to challenge or overturn this Determination. Users or critics cannot rely on the s 42 disallowance process for this instrument; any scrutiny or challenge must proceed by other routes not specified in the Determination.
General purpose label permits any use at State level, but terms may still apply. The Determination describes the assistance as general purpose and “to be used by the States for any purpose” (para 5). However, the COAG Reform Fund Act 2008 requires that terms and conditions be set out in a written agreement between Commonwealth and State (para 8), and the IGA’s Schedule D provides payment arrangements and terms (para 9). Users may assume the funds are entirely unconditional at State level based on para 5, but written agreements may impose reporting or other conditions; the Determination itself defers operational conditions to those agreements. Practitioners should not treat “general purpose” in the Determination as an absolute absence of conditions without checking Schedule D and the relevant written agreements.
Special account governance applies. The COAG Reform Fund is specified as a Special Account under the PGPA Act 2013 (para 7). That subjects the Fund to PGPA reporting and governance requirements even though the Determination does not restate them. Administrators who ignore PGPA obligations because the Determination is silent would be mistaken.
The debit limit is year-specific and binding. The Determination records the debit limit for the 2016-17 year , $2,083,333,333.00 , and states cumulative amounts do not exceed it (paras 12-14). That statutory cap is an important control; subsequent determinations in the same year must respect the same limit. Failure to monitor aggregate credits as required by the Act could create legal/administrative problems.
Payment specifics are in tables/images not reproduced in text. The Determination references Table 1 and Table 2 and contains two schedules with payment amounts (paras 10-14 and Schedule 2); the copy supplied contains images where those tables appear. Practitioners must obtain the full instrument with accessible tables to see the precise amounts and State-by-State breakdowns. Relying on a partial text without the numeric tables risks miscalculating entitlements and compliance with the debit limit.
Repetition in the published text. The supplied version reproduces many passages multiple times (Parts 1-3, Schedule 1 entries, etc.). This appears to be a formatting/transcription duplication rather than separate operative paragraphs, but readers should treat the operative text as the consolidated Determination and verify against the official version on the Federal Register of Legislation to avoid confusion.
Some payments trace to other legal instruments or deeds. Schedule 1 shows payments that derive from other instruments (for example, Snowy Hydro Tax Compensation Deed; Offshore Petroleum and Greenhouse Gas Storage Act 2006 s 75). Practitioners must consult those deeds and statutory provisions to understand eligibility, calculation methods and any conditionality: the Determination delegates those specifics to the other instruments.
No penalties or remedial regimen in the Determination itself. If a State misapplies funds or fails to meet terms in a written agreement, remedies or sanctions (if any) will be found in the written agreement, the IGA’s Schedule D, or applicable law, rather than in the Determination. Analysts should therefore trace the chain of agreements rather than treat this Determination as containing enforcement clauses.
Timing and sequencing requirement. The Determination requires crediting to the COAG Reform Fund before payments are made (para 6): that sequencing matters under Commonwealth appropriation and PGPA rules and for audit trails. Administrators must observe the sequence to avoid procedural irregularities.
Those “gotchas” show that while the Determination is administratively straightforward, its legal and operational consequences depend materially on the IGA, the COAG Reform Fund Act, the PGPA Act and any specific deeds or statutory provisions referenced in Schedule 1. Practitioners should therefore read the Determination together with those instruments and the complete tabular schedules.
How to comply
Compliance under this Determination involves actions by Commonwealth administrators and by the recipient States, but the Determination delegates many operational details to other instruments. The following compliance checklist summarises concrete steps and documentary references that follow directly from the Determination’s text.
For Commonwealth/Treasury administrators
Credit before payment. Ensure amounts specified in Table 1 are credited to the COAG Reform Fund prior to effecting the payments on the date specified (para 6 and para 10). The Determination is explicit that the crediting step is required by subsection 9(2) of the Act (para 6).
Observe the debit limit. Confirm the total amount credited to the COAG Reform Fund for general purpose financial assistance in 2016-17 does not exceed the statutory debit limit of $2,083,333,333.00 (para 12). Maintain and reconcile the cumulative totals set out in Table 2 so the aggregate remains within statutory constraints (paras 13-14).
Apply PGPA special account governance. Because the COAG Reform Fund is a Special Account for PGPA purposes (para 7), ensure the Fund is administered in accordance with PGPA Act requirements: accounting, reporting, internal controls, appropriation and audit processes for special accounts should be followed. The Determination invokes this status; compliance requires reference to the PGPA Act for the detailed obligations.
Ensure written agreements are in place. The COAG Reform Fund Act 2008 requires terms and conditions on which assistance is granted through the COAG Reform Fund to be set out in a written agreement (para 8). Make sure the relevant written agreements between the Commonwealth and the recipient States are executed and that payment is made in accordance with those agreements and with Schedule D of the IGA (paras 8-9).
Record and publish accurate tables. Table 1 and Table 2 and Schedule 2 contain the State-by-State amounts and cumulative totals (paras 10-14). Ensure published and internal copies include the complete numerical tables and that they match ledger entries for the Fund. Do not rely on partial or image-only copies.
Coordinate with other instruments. For payments that derive from other deeds or statutes (Snowy Hydro Tax Compensation Deed, Offshore Petroleum Act s 75), ensure mechanics of calculation and payment match obligations under those instruments (Schedule 1 entries).
For States and State Treasuries
Check written agreement terms. Even though the Determination describes the assistance as “general purpose” (para 5), the COAG Reform Fund Act requires terms and conditions to be set out in a written agreement (para 8) and the IGA Schedule D sets out payment arrangements (para 9). States should review the relevant written agreement and the IGA schedule to identify any reporting, acquittal or information requirements that accompany the payment.
Budget and fiscal planning. Treat funds received under this Determination as general purpose financial assistance (para 5) available for any purpose, subject to any written-agreement conditions. Incorporate the incoming funds into State budgets in accordance with State public finance rules, and account for any conditions specified in the relevant agreement or in Schedule D.
Maintain records for audits. Because the COAG Reform Fund is a Special Account and PGPA obligations apply on the Commonwealth side (para 7), States should nonetheless maintain proper records of receipts and how funds were applied, particularly where written agreements impose reporting or acquittal requirements.
Trace payments linked to other agreements. If a payment derives from a specific deed or statute (e.g., Snowy Hydro compensation or offshore royalty-sharing), review the deed or statutory clause for any obligations that attach to the State (Schedule 1 entries).
For auditors, parliamentarians and other oversight bodies
Consult the full instrument including Tables and Schedules. Verify the stated totals in Table 2 and confirm that credits were correctly made to the COAG Reform Fund before payments (paras 6, 10, 13-14). Pay attention to the debit limit statutory constraint for 2016-17 (para 12).
Be aware of the disallowance exemption. Note that s 42 disallowance does not apply to this Determination (para 4). Parliamentary officers should therefore look to other oversight mechanisms, such as PGPA reporting for the special account and the contents of the written agreements and Schedule D.
Documentation and follow-up
Obtain complete copies of the IGA Schedule D and any written agreement relevant to each payment listed in Schedule 1. The Determination relies on those instruments for the terms that govern payments (paras 8-9).
Ensure proper accounting entries: credit COAG Reform Fund, then payment to State, and preserve the audit trail for both steps. The Determination requires that sequence (paras 6, 10).
Reconcile the totals in Table 2 against the Treasury’s ledger and the COAG Reform Fund records to demonstrate compliance with the debit limit (paras 12-14).
In short, compliance is a cross‑jurisdictional administrative task: the Commonwealth must follow the credit-and-pay sequencing, observe the statutory debit limit and operate the special account under PGPA; States must monitor and comply with any written agreement terms and report or acquit where required. The Determination sets the high‑level mechanics but directs parties to other instruments for the operational details that will govern compliance practice.
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 July 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 July 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 2016 must not exceed $2,083,333,333.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2016-17
14. The total amount determined for payment of general purpose financial assistance to date in the 2016\-17 financial year does not exceed the debit limit.
Name of Determination Name of Determination
Name of Determination
This determination is the Federal Financial Relations (General purpose financial assistance) Determination No. 88 (July 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. 88 (July 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 July 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 July 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 2016 must not exceed $2,083,333,333.00.
13. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of general purpose financial assistance, including this determination.
Table 2: Total cumulative payments of general purpose financial assistance in 2016-17
14. The total amount determined for payment of general purpose financial assistance to date in the 2016\-17 financial year does not exceed the debit 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.