This Determination directs specific Commonwealth National Partnership payments to Australian States, crediting amounts to the COAG Reform Fund and paying them on scheduled dates to support projects, facilitate reforms or reward nationally significant reforms. Payments follow the profiles in National Partnerships and some are conditional on milestones or independent performance assessments decided by the relevant Commonwealth Minister or delegate. A fiscal debit limit for 2016–17 is recorded.
This instrument is a Treasurer’s determination made under section 16 of the Federal Financial Relations Act 2009. The Determination, styled Federal Financial Relations (National Partnership payments) Determination No. 112 (October 2016), authorises and sets out amounts to be paid as National Partnership payments to the States and Territories (the States) and prescribes certain mechanical steps for payment. It was made by Scott John Morrison as Treasurer and dated 30 September 2016. The Determination commences on the day it is made (cl 2).
Mechanically, the Determination performs the following actions set out in Part 3 and Schedule 1:
declares that amounts specified in Table 1 (and expanded in Schedule 1) are to be paid to the States, for the purposes described in clause 12 (supporting specified outputs or projects, facilitating reforms, or rewarding nationally significant reforms);
requires those amounts to be credited first to the COAG Reform Fund before being paid to the States on a specified payment date , in this instrument that date is 7 October 2016 (cls 12, 13);
confirms the total debit limit for National Partnership payments for the 2016-17 financial year, being the ceiling on total amounts credited to the COAG Reform Fund for this purpose (cl 15), and states that the cumulative amounts determined to date in 2016-17 (presented in Table 2) do not exceed that limit (cl 17).
The Determination is a legislative instrument under subsection 16(5) of the Federal Financial Relations Act, but clause 4 states that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it. The instrument therefore sits outside the ordinary parliamentary disallowance procedure for legislative instruments as that section would otherwise permit.
Current sections
Direct links to the current provisions in Federal Financial Relations (National Partnership payments) Determination No. 112 (October 2016).
This determination is the Federal Financial Relations (National Partnership payments) Determination No. 112 (October 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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 16 of the Act, for the purpose of providing grants of financial assistance to a State to:
(a) support the delivery by the State of specified outputs or projects;
(b) facilitate reforms by the State; or
(c) reward the State for nationally significant reforms.
Terms and conditions
6. Subsection 16(2) of the Act requires that an amount determined under subsection 16(1) must be credited to the COAG Reform Fund. 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.
7. 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.
8. ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement provides that the Commonwealth will make National Partnership payments to the States to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
9. National Partnerships will clearly set out the payment profile in respect of each State.
10. Where the achievement of pre‑determined milestones or performance benchmarks is required before a payment is made to a State:
(a) in the case of payments to reward nationally significant reforms, the relevant Commonwealth Minister or delegate will make a determination as to whether the incentive payment will be paid following receipt of an independent assessment as to whether a pre-determined performance benchmark has been achieved; and
(b) in the case of payments to facilitate reform and to support the delivery of specified outputs or projects, the relevant Commonwealth Minister or delegate will make a determination, based upon expenditure and performance reporting arrangements set out in the National Partnership, as to whether the facilitation or project payment will be paid.
11. Where the achievement of a performance benchmark is not required before a payment is made to a State, payments will be scheduled in accordance with the payment profile set out in the National Partnership.
Part 3 — National Partnership Payments
Determination
12. In accordance with subsection 16(1) of the Act, the amounts specified in Table 1 are to be paid to the States specified in that table for the purpose of making a grant of financial assistance to:
(a) support the delivery by the States of specified outputs or projects;
(b) facilitate reforms by the States; or
(c) reward the States for nationally significant reforms.
Table 1: National Partnership payments for payment on 7 October 2016
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 October 2016.
14. Schedule 1 to this determination provides further information on these payments.
Debit limits
15. Subsection 16(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making National Partnership payments in the financial year starting on 1 July 2016 must not exceed $10,416,666,667.
16. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of National Partnership payments under section 16 of the Act, including this determination.
Table 2: Total cumulative payments of National Partnership payments in 2016-17
17. The total amount determined for National Partnership payments 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 (National Partnership payments) Determination No. 112 (October 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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance)
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 (National Partnership payments) Determination No. 112 (October 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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 16 of the Act, for the purpose of providing grants of financial assistance to a State to:
(a) support the delivery by the State of specified outputs or projects;
(b) facilitate reforms by the State; or
(c) reward the State for nationally significant reforms.
Terms and conditions
6. Subsection 16(2) of the Act requires that an amount determined under subsection 16(1) must be credited to the COAG Reform Fund. 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.
7. 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.
8. ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement provides that the Commonwealth will make National Partnership payments to the States to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
9. National Partnerships will clearly set out the payment profile in respect of each State.
10. Where the achievement of pre‑determined milestones or performance benchmarks is required before a payment is made to a State:
(a) in the case of payments to reward nationally significant reforms, the relevant Commonwealth Minister or delegate will make a determination as to whether the incentive payment will be paid following receipt of an independent assessment as to whether a pre-determined performance benchmark has been achieved; and
(b) in the case of payments to facilitate reform and to support the delivery of specified outputs or projects, the relevant Commonwealth Minister or delegate will make a determination, based upon expenditure and performance reporting arrangements set out in the National Partnership, as to whether the facilitation or project payment will be paid.
11. Where the achievement of a performance benchmark is not required before a payment is made to a State, payments will be scheduled in accordance with the payment profile set out in the National Partnership.
Part 3 — National Partnership Payments
Determination
12. In accordance with subsection 16(1) of the Act, the amounts specified in Table 1 are to be paid to the States specified in that table for the purpose of making a grant of financial assistance to:
(a) support the delivery by the States of specified outputs or projects;
(b) facilitate reforms by the States; or
(c) reward the States for nationally significant reforms.
Table 1: National Partnership payments for payment on 7 October 2016
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 October 2016.
14. Schedule 1 to this determination provides further information on these payments.
Debit limits
15. Subsection 16(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making National Partnership payments in the financial year starting on 1 July 2016 must not exceed $10,416,666,667.
16. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of National Partnership payments under section 16 of the Act, including this determination.
Table 2: Total cumulative payments of National Partnership payments in 2016-17
17. The total amount determined for National Partnership payments 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 16 of the Act, for the purpose of providing grants of financial assistance to a State to:
(a) support the delivery by the State of specified outputs or projects;
(b) facilitate reforms by the State; or
(c) reward the State for nationally significant reforms.
Terms and conditions
Terms and conditions
Terms and conditions
6. Subsection 16(2) of the Act requires that an amount determined under subsection 16(1) must be credited to the COAG Reform Fund. 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.
7. 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.
8. ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement provides that the Commonwealth will make National Partnership payments to the States to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
9. National Partnerships will clearly set out the payment profile in respect of each State.
10. Where the achievement of pre‑determined milestones or performance benchmarks is required before a payment is made to a State:
(a) in the case of payments to reward nationally significant reforms, the relevant Commonwealth Minister or delegate will make a determination as to whether the incentive payment will be paid following receipt of an independent assessment as to whether a pre-determined performance benchmark has been achieved; and
(b) in the case of payments to facilitate reform and to support the delivery of specified outputs or projects, the relevant Commonwealth Minister or delegate will make a determination, based upon expenditure and performance reporting arrangements set out in the National Partnership, as to whether the facilitation or project payment will be paid.
11. Where the achievement of a performance benchmark is not required before a payment is made to a State, payments will be scheduled in accordance with the payment profile set out in the National Partnership.
This determination is the Federal Financial Relations (National Partnership payments) Determination No. 112 (October 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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 16 of the Act, for the purpose of providing grants of financial assistance to a State to:
(a) support the delivery by the State of specified outputs or projects;
(b) facilitate reforms by the State; or
(c) reward the State for nationally significant reforms.
Terms and conditions
6. Subsection 16(2) of the Act requires that an amount determined under subsection 16(1) must be credited to the COAG Reform Fund. 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.
7. 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.
8. ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement provides that the Commonwealth will make National Partnership payments to the States to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
9. National Partnerships will clearly set out the payment profile in respect of each State.
10. Where the achievement of pre‑determined milestones or performance benchmarks is required before a payment is made to a State:
(a) in the case of payments to reward nationally significant reforms, the relevant Commonwealth Minister or delegate will make a determination as to whether the incentive payment will be paid following receipt of an independent assessment as to whether a pre-determined performance benchmark has been achieved; and
(b) in the case of payments to facilitate reform and to support the delivery of specified outputs or projects, the relevant Commonwealth Minister or delegate will make a determination, based upon expenditure and performance reporting arrangements set out in the National Partnership, as to whether the facilitation or project payment will be paid.
11. Where the achievement of a performance benchmark is not required before a payment is made to a State, payments will be scheduled in accordance with the payment profile set out in the National Partnership.
Part 3 — National Partnership Payments
Determination
12. In accordance with subsection 16(1) of the Act, the amounts specified in Table 1 are to be paid to the States specified in that table for the purpose of making a grant of financial assistance to:
(a) support the delivery by the States of specified outputs or projects;
(b) facilitate reforms by the States; or
(c) reward the States for nationally significant reforms.
Table 1: National Partnership payments for payment on 7 October 2016
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 October 2016.
14. Schedule 1 to this determination provides further information on these payments.
Debit limits
15. Subsection 16(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making National Partnership payments in the financial year starting on 1 July 2016 must not exceed $10,416,666,667.
16. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of National Partnership payments under section 16 of the Act, including this determination.
Table 2: Total cumulative payments of National Partnership payments in 2016-17
17. The total amount determined for National Partnership payments to date in the 2016-17 financial year does not exceed the debit limit.
Determination
Determination
Determination
12. In accordance with subsection 16(1) of the Act, the amounts specified in Table 1 are to be paid to the States specified in that table for the purpose of making a grant of financial assistance to:
(a) support the delivery by the States of specified outputs or projects;
(b) facilitate reforms by the States; or
(c) reward the States for nationally significant reforms.
Table 1: National Partnership payments f
Table 1: National Partnership payments for payment on 7 October 2016
Table 1: National Partnership payments for payment on 7 October 2016
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 October 2016.
14. Schedule 1 to this determination provides further information on these payments.
Debit limits
Debit limits
Debit limits
15. Subsection 16(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making National Partnership payments in the financial year starting on 1 July 2016 must not exceed $10,416,666,667.
16. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of National Partnership payments under section 16 of the Act, including this determination.
Table 2: Total cumulative payments of Na
Table 2: Total cumulative payments of National Partnership payments in 2016-17
Table 2: Total cumulative payments of National Partnership payments in 2016-17
17. The total amount determined for National Partnership payments to date in the 2016-17 financial year does not exceed the debit limit.
SChedule 1
SChedule 1
Amounts of National Partnership Payments for payment on 7 October 2016 ($)
This determination is the Federal Financial Relations (National Partnership payments) Determination No. 112 (October 2016).
Commencement
2. This determination commences on the day on which this determination is made.
Definitions
The Determination repeatedly links its operation to other statutory and intergovernmental frameworks. It relies on the COAG Reform Fund Act 2008 , noting the Fund is a Special Account under the Public Governance, Performance and Accountability Act 2013 and that subsection 7(2) of the COAG Reform Fund Act requires the terms and conditions for assistance to be set out in a written agreement between the Commonwealth and the State (cls 6-7). It also refers to the Intergovernmental Agreement on Federal Financial Relations (effective 1 January 2009) and to ‘Schedule D , Payment Arrangements’ of that Agreement as the framework under which National Partnership payments are made (cl 8).
Finally, the Determination sets out procedural rules when payments are contingent on performance benchmarks or milestones. Where payments are reward‑type incentives, the relevant Commonwealth Minister or delegate will decide whether to pay after receiving an independent assessment about achievement of pre‑determined performance benchmarks. Where payments facilitate reform or support project delivery, the Minister or delegate will determine payment based on expenditure and performance reporting required by the National Partnership (cl 10). Where no milestone requirement exists, payments follow the payment profile in the National Partnership (cl 11). The schedule pages attached to the Determination (Table 1 and Schedule 1) list the specific payments and recipients; the instrument instructs that those amounts be credited to the COAG Reform Fund and paid on 7 October 2016 (cls 12-14).
All of the above is drawn directly from the text of the Determination: its purposes are set out in clause 5; its procedural steps are set out in Parts 2 and 3 and in Schedule 1; and its statutory foundations are the Federal Financial Relations Act 2009, the COAG Reform Fund Act 2008 and the Intergovernmental Agreement, as the instrument itself records (cls 3, 6-9, 12).
Main concepts
The Determination relies on and operationalises a small set of interlocking statutory and intergovernmental concepts. These are stated or invoked directly in the text.
National Partnership payments. The Determination designates specific amounts as National Partnership payments to be paid to States for three explicit purposes: (a) supporting delivery of specified outputs or projects, (b) facilitating reforms by States, and (c) rewarding States for nationally significant reforms (cl 5; cl 12). National Partnerships are a mechanism under the Intergovernmental Agreement on Federal Financial Relations and are to “clearly set out the payment profile in respect of each State” (cl 9).
COAG Reform Fund and Special Account treatment. The instrument repeatedly requires that amounts determined under section 16 of the Federal Financial Relations Act be credited to the COAG Reform Fund before payment (cl 6; cl 13). The COAG Reform Fund is identified as established by section 5 of the COAG Reform Fund Act 2008 and classified as a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013 (cl 6). Subsection 7(2) of the COAG Reform Fund Act 2008 is cited as requiring terms and conditions for assistance to be set out in a written agreement between Commonwealth and State (cl 7).
Payment profiles, milestones and performance benchmarks. The instrument distinguishes three payment situations: reward payments (where an independent assessment must be obtained and the Minister or delegate determines whether to pay), facilitation or project payments (where the Minister or delegate determines payments based on expenditure and performance reporting in the National Partnership), and payments not contingent on benchmarks (which follow the payment profile in the National Partnership) (cl 10-11). The Minister or delegate therefore holds decisional authority tied to documentary assessments and reporting.
Debit limit. The Determination recognises a statutory ceiling on amounts credited to the COAG Reform Fund for National Partnership payments in the 2016-17 financial year. Clause 15 quotes subsection 16(3) of the Federal Financial Relations Act, giving the debit limit as $10,416,666,667 for the financial year starting 1 July 2016. Clause 17 records that the cumulative amount determined to date, as shown in Table 2, does not exceed that debit limit.
Legislative instrument regime and disallowance exemption. The Determination is a legislative instrument under subsection 16(5) of the Act, but clause 4 draws attention to an express exemption: section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to this determination.
Parties and roles. The text defines “Act” (Federal Financial Relations Act 2009), “COAG Reform Fund” and “Intergovernmental Agreement” (cl 3). It also clarifies that “State” includes the Australian Capital Territory and the Northern Territory (cl 3). The Treasurer is the maker of the Determination; the relevant Commonwealth Minister or delegate is the decision‑maker for milestone‑contingent payments (cl 10).
Documentation and schedules. The Determination deploys schedules and tables as its operative content: Table 1 names amounts to be paid on a specific date (7 October 2016) and Schedule 1 provides further information. Table 2 shows cumulative amounts for the 2016-17 financial year. The instrument instructs that those amounts be credited to the COAG Reform Fund prior to payment (cl 13).
Those are the conceptual building blocks the instrument uses to allocate Commonwealth funds to States within the Federal Financial Relations framework. The Determination does not, itself, specify the internal terms of each National Partnership agreement beyond payment profiles, milestones and reporting references; rather it references other instruments (the National Partnership agreements and the Intergovernmental Agreement) and statutory requirements (COAG Reform Fund Act s7(2)) for those details.
Who it affects
The Determination identifies and affects discrete groups through its payment and administrative mechanics.
States and Territories. The primary recipients are the States (including the Australian Capital Territory and the Northern Territory, as the instrument defines “State” to include those territories at clause 3). Schedule 1 and Table 1 list the amounts payable to particular States for the payment date of 7 October 2016 (cls 12-14). The States are the parties that will receive grants of financial assistance and will be required to meet any performance benchmarks, milestones or reporting obligations specified in the relevant National Partnership agreements.
The Commonwealth Executive and the Treasurer. The instrument is made by the Treasurer under the Federal Financial Relations Act 2009 (the “Act”) and therefore engages Commonwealth fiscal decision‑making processes. The Treasurer’s act of determination is an exercise of statutory authority under s 16 of the Act, and the instrument assigns decision authority to “the relevant Commonwealth Minister or delegate” for determining whether to pay when payments are contingent on performance (cl 10).
Commonwealth administrative agencies administering the COAG Reform Fund. Clause 6 places amounts first into the COAG Reform Fund, which is a Special Account established under the COAG Reform Fund Act 2008 and subject to the Public Governance, Performance and Accountability Act 2013. Agencies responsible for administering the Fund and complying with PGPA Act requirements will be operationally implicated by the crediting and payment steps required by the Determination.
Independent assessors and reporting entities. Where payments are reward‑based and contingent on achievement of a pre‑determined benchmark, the instrument contemplates an independent assessment being provided to the Minister or delegate, upon which payment determination will be made (cl 10(a)). This creates a role for independent assessors engaged to verify performance against benchmarks. Likewise, where payments facilitate reform or support project delivery, the Minister or delegate will base payment on expenditure and performance reporting arrangements specified in the National Partnership (cl 10(b)), creating reporting obligations for State agencies.
Entities contracting with States. Although the Determination itself does not impose direct obligations on private contractors, the funds paid to States will typically be used to deliver outputs or projects. That means private enterprises, non‑government organisations and service providers that contract with State governments to deliver those outputs or projects are indirectly affected by the Determination, as the availability and timing of Commonwealth funds can influence State procurement, cashflow for projects and the State’s willingness to enter into contracts.
Parliamentary oversight mechanisms. Clause 4 expressly removes the instrument from the disallowance regime in section 42 of the Legislative Instruments Act 2003, which means the usual parliamentary disallowance process will not apply. That affects how Parliament, through its legislative instruments mechanism, can review or disallow this Determination.
Budgetary frameworks and the Australian Government’s fiscal position. By directing sums to the COAG Reform Fund and then to States, the Determination affects Commonwealth budget flows and the balance of outlays between the Commonwealth and States. The Determination also explicitly references the debit limit for National Partnership payments in 2016-17 (cl 15), meaning it plays a part in ensuring the Commonwealth’s commitments stay within legislatively authorised ceilings.
In short, the Determination primarily affects the States as recipients, the Commonwealth executive and agencies responsible for the COAG Reform Fund, independent assessors and State reporting entities, and indirectly the private and non‑profit service providers engaged by States. It also alters the scope for parliamentary oversight by excluding the instrument from disallowance under the Legislative Instruments Act 2003 (cl 4).
Key duties and rights
The Determination creates a set of duties, rights and decision points allocated among the Commonwealth, the Treasurer and the States. These are mostly administrative duties and conditional rights to payments.
Duties imposed or recorded by the Determination
Treasurer’s power to determine amounts under s 16 of the Federal Financial Relations Act 2009. The instrument itself is an exercise of that power (instrument preamble; cl 12 states amounts specified are to be paid in accordance with subsection 16(1) of the Act).
Crediting to the COAG Reform Fund. Clause 6 records the statutory requirement in subsection 16(2) of the Act that amounts determined under subsection 16(1) must be credited to the COAG Reform Fund. Clause 13 operationalises that by specifying that the amounts in Table 1 will be credited to the COAG Reform Fund before being paid to States on 7 October 2016.
Written agreements. Clause 7 cites subsection 7(2) of the COAG Reform Fund Act 2008 which requires the terms and conditions for financial assistance granted through the COAG Reform Fund to be set out in written agreements between the Commonwealth and a State. This places a duty on Commonwealth entities and States to document the terms and conditions in written form before or contemporaneous with grant delivery.
Minister/delegate determination based on assessment and reporting. Clause 10 places a duty on the relevant Commonwealth Minister or delegate to make a determination as to whether incentive payments will be paid after receiving independent assessments for reward payments (cl 10(a)), and for facilitation or project payments to make determinations based on expenditure and performance reporting as set out in the National Partnership (cl 10(b)). That imposes a decision‑making obligation to be exercised consistent with documentary assessments and the National Partnership provisions.
Conforming to the debit limit. Clause 15 identifies the legislative ceiling (subsection 16(3) of the Act) and clause 16/17 record cumulative amounts and the requirement that total credits do not exceed the debit limit for 2016-17.
Rights created or referenced by the Determination
States’ entitlement to receive specified payments. Clause 12 states the amounts specified in Table 1 are to be paid to the States identified for the purposes listed (support outputs, facilitate reforms, reward reforms). That creates a right, conditional on meeting any milestones or schedules, to receive the amounts allocated in Schedule 1.
Ministerial discretion keyed to assessments and reporting. While the Determination creates duties for Ministers or delegates to make determinations based on independent assessments or reporting, it also codifies a discretion: the relevant Commonwealth Minister or delegate “will make a determination as to whether the incentive payment will be paid” (cl 10(a)) and “will make a determination … as to whether the facilitation or project payment will be paid” (cl 10(b)). The exercise of that discretion governs whether a State’s right to a payment is realised when payments are contingent on performance.
Right to receive funds only after crediting to the COAG Reform Fund. Clause 13 imposes a timing and accounting condition: amounts must be credited to the COAG Reform Fund before payment to States.
Matters the Determination does not itself do or that are reserved to other instruments
It does not set the detailed terms and conditions of each National Partnership payment; clause 7 points to subsection 7(2) of the COAG Reform Fund Act 2008 which requires such terms be set out in a written agreement. The Determination therefore relies on National Partnership agreements and written funding agreements for the operative operational terms.
It does not itself establish penalty regimes or repayment provisions; the text does not specify sanctions, clawbacks or recoupment procedures within the Determination (the instrument is silent on penalties).
Administrative consequences and interaction with Accountability law
Because the COAG Reform Fund is a Special Account under the Public Governance, Performance and Accountability Act 2013 (cl 6), entities administering the Fund must observe PGPA Act obligations for Special Accounts when crediting and paying amounts. That creates an administrative duty to reconcile the Determination’s amounts with Special Account reporting and appropriation rules under PGPA.
To implement the Determination, the Commonwealth and States must therefore discharge documentary duties (written agreements), accounting steps (crediting to COAG Reform Fund and adhering to the debit limit), and reporting and assessment processes where payments are milestone‑contingent. The relevant Commonwealth Minister or delegate is the gatekeeper for milestone‑contingent payments, and the Treasurer’s determination is the statutory vehicle authorising the amounts initially.
Penalties and enforcement
The Determination itself does not introduce statutory penalties or criminal offences. Its enforcement mechanisms are administrative and procedural rather than punitive within the text of the instrument.
No penal provisions in the Determination
The text contains no provision imposing fines, offences or criminal sanctions. It does not, within the pages provided, specify repayment, clawback, or sanction regimes for non‑performance. The Determination focuses on authorising payments, setting accounting steps, and specifying the decision process for payment when linked to milestones or benchmarks (cls 10-13).
Administrative enforcement and conditional payment mechanics
Ministerial/deligate determination. Clause 10 assigns the key enforcement function to the relevant Commonwealth Minister or delegate. For incentive (reward) payments, the Minister or delegate will decide whether the payment will be made following receipt of an independent assessment that a pre‑determined benchmark has been achieved (cl 10(a)). For facilitation or project payments, the Minister or delegate will decide on payment based on expenditure and performance reporting arrangements in the National Partnership (cl 10(b)). In both cases, the Determination uses the Minister’s decision as the operative enforcement mechanism: payments are authorised only when the Minister or delegate determines the State has met the conditions.
Independent assessment and reporting. For reward payments the Determination requires independent assessment; this introduces an external verification procedure that supports the Minister’s decision (cl 10(a)). For facilitation/project payments the instrument requires expenditure and performance reporting as specified in the National Partnership (cl 10(b)). These verification and reporting mechanisms are the immediate instruments of compliance assessment.
Accounting and budgetary enforcement
Crediting requirement and Special Account obligations. Clause 6 states that amounts determined under s 16(1) must be credited to the COAG Reform Fund, which is a Special Account under the PGPA Act. That means the practical enforcement of the Determination’s payment mechanics will operate through Special Account rules, financial management controls and audit processes administered under the PGPA Act and by the entity responsible for the COAG Reform Fund. Any failure to credit or to pay as authorised would therefore implicate Commonwealth financial controls and possibly audit findings, though the Determination itself does not specify sanctioning steps.
Parliamentary oversight limitation
Clause 4 notes that although the Determination is a legislative instrument under subsection 16(5) of the Act, section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply. That exemption removes an ordinary mechanism for parliamentary disallowance as a form of oversight or corrective action for the instrument. The Determination does not itself offer alternative parliamentary remedies.
Implicit and delegated enforcement through National Partnership agreements
Clause 7 refers to subsection 7(2) of the COAG Reform Fund Act 2008, which requires the terms and conditions for assistance to be set out in a written agreement between Commonwealth and State. Any enforcement terms such as repayment obligations, performance sanctions or audit rights are therefore likely to be located in those written agreements or in the National Partnership documents themselves; the Determination does not reproduce them. The Determination’s enforcement architecture is therefore partly delegated to the agreements it references.
In sum, the Determination contains no express penalties. Enforcement is effected through conditional payment (ministerial determination following assessment/reporting), financial management and Special Account controls under the PGPA Act, and the terms and conditions that must be set out in the written funding agreements between Commonwealth and State. The Determination narrows the scope of parliamentary instrument disallowance by explicitly excluding it from s 42 of the Legislative Instruments Act 2003 (cl 4), which has the effect of removing one parliamentary enforcement pathway for this instrument.
How it interacts with other laws
The Determination is expressly framed as part of an interlocking legal and administration framework. The instrument names and relies upon several statutes and the Intergovernmental Agreement; its operation is contingent on features of those other instruments.
Primary statutory interactions
Federal Financial Relations Act 2009. The Determination is made under section 16 of that Act (instrument preamble; cl 12 refers to subsection 16(1)). The Act supplies the statutory head of power for the Treasurer to determine amounts for National Partnership payments, for the treatment of those amounts with respect to the COAG Reform Fund (subsection 16(2)), and for the debit limit constraint (subsection 16(3)). Clause 4 also cites subsection 16(5) to classify the Determination as a legislative instrument.
COAG Reform Fund Act 2008. Clause 6 references the COAG Reform Fund Act 2008: the Fund is established by section 5 of that Act, and subsection 7(2) of that Act requires the terms and conditions under which financial assistance is granted through the Fund to be set out in a written agreement between Commonwealth and State. The Determination therefore presupposes written funding agreements governed by the COAG Reform Fund Act’s requirements.
Public Governance, Performance and Accountability Act 2013 (PGPA Act). Clause 6 states that the COAG Reform Fund is a Special Account for the purposes of the PGPA Act. This imports PGPA financial management, reporting and audit requirements to the administration of monies credited to and drawn from the COAG Reform Fund. The Determination does not restate PGPA provisions, but operating the crediting and payment steps requires compliance with PGPA Special Account rules.
Legislative Instruments Act 2003. Clause 4 specifies that although the Determination is a legislative instrument, section 42 of the Legislative Instruments Act (the disallowance mechanism) does not apply. This is an express statutory carve‑out that alters the instrument’s parliamentary oversight regime compared with most legislative instruments.
Intergovernmental and agreement‑based interactions
Intergovernmental Agreement on Federal Financial Relations and Schedule D , Payment Arrangements. Clause 3 defines “Intergovernmental Agreement” and clause 8 cites “Schedule D , Payment Arrangements” as providing that the Commonwealth will make National Partnership payments to States to support delivery of specified outputs or projects, facilitate reforms, or reward jurisdictions that deliver nationally significant reforms. The Determination therefore operates as part of the IGA framework and depends on National Partnership agreements to set payment profiles, milestones and reporting requirements.
Accounting and budgeting interactions
The Determination implements the direction in subsection 16(2) of the Federal Financial Relations Act that amounts determined under subsection 16(1) must be credited to the COAG Reform Fund. Clause 13 operationalises that by stating amounts in Table 1 will be credited to the COAG Reform Fund before being paid to the States on the specified date. Clause 15 cites the statutory debit limit under subsection 16(3) and clause 17 records that cumulative payments do not exceed that ceiling. Therefore the Determination interacts with Commonwealth appropriation and Special Account rules; amounts authorised by the Determination must be reconciled with appropriation and accounting limits under the PGPA Act.
Delegation and administrative law interaction
The Determination delegates operational decisions about milestone achievement to the “relevant Commonwealth Minister or delegate” (cl 10). That delegation will engage administrative law principles applicable to ministerial or delegated decision‑makers (natural justice, reasoned decision‑making, statutory interpretation), although the Determination itself does not set out those doctrines. The instrument also anticipates reliance on independent assessments, which will generate documentary evidence underpinning administrative decisions.
What the Determination does not alter in law
The Determination does not amend the Intergovernmental Agreement, the COAG Reform Fund Act, or the Federal Financial Relations Act. It operates within the powers those instruments confer. The Determination does not itself contain procurement rules, detailed terms and conditions for each payment, or direct references to sanctioning mechanisms , those are left to the written funding agreements and the National Partnership documentation.
Practical consequence of the interactions
To implement the Determination, Commonwealth and State agencies must coordinate across PGPA Special Account reporting, the written terms required by the COAG Reform Fund Act, and the National Partnership reporting and milestone regime established under the Intergovernmental Agreement. The Determination’s exclusion from the disallowance regime also changes how it is reviewed within the legislative instruments framework.
These interactions are stated in the Determination (cls 3, 6-8, 10, 13-17) and are the legal scaffolding the instrument relies upon to effect payments while leaving operational and contractual details to the National Partnerships and the required written funding agreements.
Amendment history
The text supplied is a single instrument titled Federal Financial Relations (National Partnership payments) Determination No. 112 (October 2016), made by the Treasurer, Scott John Morrison, and dated 30 September 2016. The Determination records its commencement as “on the day on which this determination is made” (cl 2). The instrument itself contains no express amendment clauses, transitional provisions or subsequent variations within the text provided.
What the document tells us about its history and versioning
Identification and dating. The Determination is numbered No. 112 and described as (October 2016). The instrument’s signature block contains the Treasurer’s name and the date 30 September 2016. The Determination therefore appears to be a one‑off instrument issued under subsection 16(5) of the Federal Financial Relations Act 2009. There is no in‑instrument history of prior determinations, revoked instruments or explicit replacement language in the text provided.
No recorded amendments. The Determination contains no “amendment” section, no notation of prior versions or successor instruments, and no revocation of earlier determinations in the text supplied. It does not contain a schedule of prior determinations or a note of “this replaces” that would indicate it amended an earlier instrument.
Repetition in the source document. The supplied text includes substantial repetition of clauses and blocks of the instrument, including repeated recitations of the Name, Commencement, Definitions, Purpose and Parts 2-3. That duplication appears to be an artefact of the source rendering rather than a series of amendments; the instrument is otherwise silent on amendments.
Schedule content embedded as images. The Determination refers to Table 1 and Schedule 1 for specific payment amounts and to Table 2 for cumulative sums for 2016-17. In the provided source those tables are presented as images (image.001.png, image.002.png, image.003.png, image.004.png). The images appear to contain the operative numeric allocations. The Determination’s operative text therefore depends on schedules that are attached as images; any amendment or variation to these amounts in practice would typically appear as a later Determination or as an amended schedule, but there are no such amendments recorded in the provided material.
What is missing from the text supplied
The instrument does not list any previous or subsequent instruments that amend it. It does not include an amendment log, notes on consolidation, or transitional provisions. It does not, within the text provided, show any subsequent modification. If any changes to the payment profile occurred after 30 September 2016 they are not recorded in this Determination.
Implication for users
Practitioners needing to know whether this Determination has been superseded or amended must check the official legislative instrument register or the Federal Register of Legislation for later instruments or revocations. The Determination as supplied should be treated as a snapshot at the date of signature; no later amendment history is present in the source text. The presence of schedules in image form may require retrieval of the original published instrument to confirm precise numeric allocations and to check for any later determinations that alter amounts or payment dates.
In sum, the Determination as provided is a single instrument dated 30 September 2016 that does not itself record amendments or a revision history in the supplied text.
Litigation history
The Determination’s text contains no references to judicial or tribunal decisions, and it names no cases. The instrument itself is an administrative funding instrument and does not include any history of litigation within the text supplied.
What the Determination discloses about litigation
Silence on cases. The instrument does not mention judicial review, previous litigation, or legal disputes. It does not cite case law or adjudicative outcomes. It also does not include any scheme of statutory appeal or redress within its terms beyond the ministerial or delegate decision mechanisms expressly set out for milestone‑contingent payments (cl 10).
Potential venues for litigation implied by the instrument
Administrative decisions about milestone achievement. Clause 10 contemplates determinations by the relevant Commonwealth Minister or delegate as to whether incentive, facilitation or project payments will be paid. Decisions of Ministers and delegates are ordinarily subject to judicial review under the administrative law framework if they are “decisions” within the meaning of judicial review statutes and if appropriate grounds (such as errors of law, procedural unfairness or irrationality) are made out. The Determination itself does not assert ouster of judicial review or create privative clauses.
Contractual disputes in written agreements. Clause 7 requires that the terms and conditions on which financial assistance is granted through the COAG Reform Fund be set out in a written agreement between the Commonwealth and the State. Disputes as to interpretation or performance of those written agreements would ordinarily present contractual or equitable claims in State or Federal courts, depending on the contracting parties and the precise claims. The Determination does not set contractual dispute resolution procedures.
Financial management and audit findings. Because amounts are to be credited to a Special Account under the PGPA Act, audit or Comptroller‑General functions could generate findings or recoveries. Any audit‑driven disputes about compliance with PGPA Special Account rules could lead to administrative remedies or legal proceedings, but the Determination itself does not specify litigation pathways.
Recommendation for practitioners (administrative note, not legal advice)
Given the Determination contemplates ministerial determinations and written agreements, parties should expect that legal disputes, if any, will arise under administrative law (judicial review) or contract law (enforcement of written agreements). However, the Determination as supplied contains no litigation history and names no cases; to identify any litigation involving this Determination, practitioners must consult court records or public registers outside the instrument.
In short, the source material provides no litigation history. Any litigation that implicates the Determination would stem from separate proceedings concerning Ministerial decisions, assessment outcomes, funding agreement disputes, or financial management obligations, none of which are recited in the Determination text provided.
Gotchas
The Determination is short and administrative in form, but several practical and legal pitfalls are apparent from the instrument’s text and structure. These are operational or interpretive risks likely to matter to officials, State governments, contractors and compliance advisers.
Crediting to the COAG Reform Fund before payment (cl 6, cl 13). The requirement that amounts determined under s 16(1) be credited to the COAG Reform Fund before being paid to States is an accounting and timing constraint. Operationally, this requires that Commonwealth financial officers complete Special Account transactions before Treasury or Finance authorise disbursement to States. Failure to perform the crediting step correctly could result in technical breaches of PGPA Special Account rules or in audit findings.
Debit limit constraint (cl 15). The Determination must be read against the statutory debit limit in subsection 16(3) of the Federal Financial Relations Act; clause 15 gives the 2016-17 ceiling as $10,416,666,667. Amounts credited under this Determination must therefore be reconciled against cumulative determinations for the financial year (Table 2, cl 16). Practically, Treasury must track cumulative determined amounts to avoid exceeding the statutory ceiling. The Determination records that totals to date do not exceed the debit limit (cl 17); that check must be repeated for subsequent actions.
Disallowance exemption (cl 4). The Determination is a legislative instrument but clause 4 states that s 42 (disallowance) of the Legislative Instruments Act 2003 does not apply. That reduces parliamentary oversight avenues for this Determination relative to most legislative instruments. Practitioners should be aware that routine parliamentary disallowance is not available for contesting or reviewing the instrument’s legality via the disallowance process; administrative or judicial avenues remain possible.
Reliance on external documents and attachments rendered as images. The Determination’s numerics and allocations are contained in Table 1, Table 2 and Schedule 1, which in the supplied source appear as images (image.001.png, image.002.png, image.003.png, image.004.png). That creates two practical issues:
a machine‑readability problem for automated systems or for practitioners trying to extract figures programmatically;
a legal record issue where the operative amounts are in attached images, increasing the importance of retrieving the original instrument on an official register to confirm the exact sums and recipients.
Users should verify the image‑based schedules against the authorised copy on the Federal Register of Legislation.
Ministerial discretion and evidentiary standards for independent assessments (cl 10). Where payments are contingent on benchmarks, the Minister or delegate will act “following receipt of an independent assessment” or “based upon expenditure and performance reporting arrangements set out in the National Partnership.” The Determination does not define the standards for independence, the scope of assessments, or the procedural rights of States in contesting assessment outcomes. That creates potential uncertainty and negotiation costs about the form, timing and admissibility of evidence proving benchmark achievement.
Absence of penalty or clawback clauses in the Determination. The instrument does not itself specify recoupment, repayment, or sanction mechanisms. Clause 7 points to written agreements for terms and conditions; practitioners must look to those agreements to find enforcement or repayment conditions. Without such clauses specifically attached, there may be ambiguity about remedies available to the Commonwealth if a State is later found non‑compliant.
Delegation and administrative law exposure. The Determination contemplates determinations by the “relevant Commonwealth Minister or delegate” (cl 10). Delegated decision‑making must be exercised within administrative law constraints; errors in process or reasoning could expose ministerial determinations to judicial review. Parties should document decision processes carefully to withstand potential review.
Interdependence with the Intergovernmental Agreement and National Partnerships (cl 8-11). The Determination does not itself set out detailed payment profiles or project terms; it relies on National Partnerships to “clearly set out the payment profile.” Disputes or inconsistencies between the Determination and the National Partnership documentation or the written funding agreement could complicate implementation. Practitioners should confirm alignment between the Determination schedules and the National Partnership’s payment schedule.
Timing sensitivity for project cashflow. The Determination fixes a payment date (7 October 2016) and requires crediting before payment (cl 13). Any delay in the Commonwealth’s accounting steps could affect State cashflows and project delivery. Contractual arrangements dependent on those funds should incorporate contingency planning for timing variance.
Repetition and possible drafting artefacts in the source. The supplied text contains repeated blocks of the instrument. While that repetition is likely a transcription artefact, practitioners relying on a single copy should check the official instrument to ensure there are no omitted or conflicting clauses.
These “gotchas” are all traceable to the instrument’s clauses: the crediting requirement and Special Account treatment (cl 6, cl 13), debit limit (cl 15), disallowance exemption (cl 4), ministerial determination and independent assessment mechanics (cl 10), written agreement requirement (cl 7), schedules and their format (cls 12-14 and Schedule 1), and delegation references to the Minister or delegate (cl 10). Practitioners should verify the numeric schedules on the official register and review the associated National Partnership agreements and written funding agreements to resolve the absence of penalties or detailed procedural standards in the Determination.
How to comply
This section sets out practical compliance steps and checklist items the document requires or implies, grounded in the Determination’s text. The emphasis is on administrative, accounting and documentation processes that Commonwealth agencies and States should observe.
Confirm instrument provenance and operative schedules
Retrieve and store the authoritative copy of Determination No. 112 (October 2016) from the Federal Register of Legislation or official Treasury records. Because the operative numeric allocations appear in Schedule 1 and Table 1/2 as attached images in the supplied source, obtain the original published schedules to ensure accurate figures and recipient listings (cls 12-14; Schedule 1 references).
Accounting: credit the COAG Reform Fund before payment
Under subsection 16(2) as cited in the Determination, amounts determined under subsection 16(1) must be credited to the COAG Reform Fund. Operationally, the Commonwealth must complete the accounting credit to the Special Account before funds are drawn down and remitted to States. Ensure Treasury/Finance/COAG Reform Fund administrators follow PGPA Special Account rules when executing the credit and subsequent transfer (cl 6; cl 13).
Verify the debit limit and cumulative totals
Clause 15 cites the statutory debit limit for National Partnership payments in 2016-17 as $10,416,666,667. Track cumulative determined amounts in the financial year and reconcile against the debit limit. Clause 16 presents Table 2 as the cumulative totals to date; ensure any future determinations maintain compliance with subsection 16(3) of the Act by not exceeding the debit limit (cl 15-17).
Ensure written agreements set out terms and conditions
Subsection 7(2) of the COAG Reform Fund Act 2008 is invoked at clause 7; it requires that terms and conditions for financial assistance be set out in written agreements between Commonwealth and State. Before disbursing funds, finalise and execute those written agreements specifying payment profiles, eligible expenditure, reporting obligations, audit and compliance provisions, and any repayment or sanction terms. The Determination itself does not include these terms, so the written agreement is the primary compliance document (cl 7).
For milestone‑contingent payments, implement assessment and reporting protocols
If payment is contingent on performance benchmarks:
For reward payments, obtain an independent assessment demonstrating achievement of pre‑determined benchmarks and provide it to the relevant Commonwealth Minister or delegate to support the payment determination (cl 10(a)). Specify in the written agreement the standards for independence, scope of assessment, timing, dispute resolution and rights to respond to the assessment.
For facilitation or project payments, ensure that expenditure and performance reporting arrangements required by the National Partnership are in place, with clear reporting formats, timelines and verification procedures for the Minister or delegate to use in making payment determinations (cl 10(b)). Document the reporting chain and responsibilities.
Establish recordkeeping and audit trails consistent with PGPA Act
Because the COAG Reform Fund is a Special Account under the PGPA Act (cl 6), maintain records and reconciliations necessary for Special Account reporting, audits and oversight. Keep documentary evidence of crediting to the Fund, transfers to States, and all supporting assessments and performance reports. Ensure compliance with PGPA reporting timetables and any audit requirements.
Prepare for ministerial decisions and potential administrative review
Decision steps for milestone conditions rest with the “relevant Commonwealth Minister or delegate” (cl 10). Prepare briefing materials, independent assessment reports, expenditure statements, and recommended determinations in standardised formats to support timely ministerial decisions. Anticipate that ministerial determinations are administrative acts open to judicial review on conventional grounds; therefore document reasons and evidence supporting determinations.
Coordinate timing and cashflow expectations with States and suppliers
The instrument fixes a payment date (7 October 2016 in this Determination) and requires crediting before payment (cl 13). Communicate payment timing and any conditions to State finance contacts and to large contractors whose cashflow might be affected. Where projects depend on the funds, include contingency clauses in State contracts for delays in Commonwealth accounting steps.
Address the disallowance exemption in stakeholder communications
Clause 4 removes this Determination from disallowance under the Legislative Instruments Act 2003. When briefing parliamentary or oversight bodies, explain the instrument’s exemption and where their scrutiny may be focused instead (for example, on the written agreements, PGPA Special Account reporting, or National Partnership reporting). Maintain transparency through voluntary reporting channels where appropriate.
Reconcile National Partnership documentation and the Determination schedules
National Partnerships must “clearly set out the payment profile in respect of each State” (cl 9). Ensure the schedules to the Determination match the National Partnership payment profiles and the written funding agreements. Any inconsistency should be resolved before payment by amending the written agreement or, if necessary, making a further Determination.
Review documents for machine readability and archival access
Given the schedule tables appear as images in the reproduced source, ensure machine‑readable copies of the numerical schedules are archived and accessible to financial systems. This avoids transcription errors and facilitates automated budgeting and compliance monitoring.
If drafting or negotiating written agreements, include enforcement and remediation clauses
Because the Determination itself is silent on penalties or clawbacks, include clear remedies in the written funding agreement for non‑performance, misreporting, misappropriation or audit failures. Specify audit rights, repayment triggers, dispute resolution mechanisms and timelines for correcting deficiencies.
This practical checklist is directly tied to the Determination’s clauses: crediting and Special Account treatment (cl 6, cl 13), debit limit (cl 15-17), written agreement requirement (cl 7), ministerial/deligate determinations and independent assessment/reporting (cl 10), schedule and payment dates (cls 12-14), and the Legislative Instruments Act exemption (cl 4). Compliance requires coordination across legal, financial and program delivery functions at Commonwealth and State levels.
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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 16 of the Act, for the purpose of providing grants of financial assistance to a State to:
(a) support the delivery by the State of specified outputs or projects;
(b) facilitate reforms by the State; or
(c) reward the State for nationally significant reforms.
Terms and conditions
6. Subsection 16(2) of the Act requires that an amount determined under subsection 16(1) must be credited to the COAG Reform Fund. 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.
7. 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.
8. ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement provides that the Commonwealth will make National Partnership payments to the States to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
9. National Partnerships will clearly set out the payment profile in respect of each State.
10. Where the achievement of pre‑determined milestones or performance benchmarks is required before a payment is made to a State:
(a) in the case of payments to reward nationally significant reforms, the relevant Commonwealth Minister or delegate will make a determination as to whether the incentive payment will be paid following receipt of an independent assessment as to whether a pre-determined performance benchmark has been achieved; and
(b) in the case of payments to facilitate reform and to support the delivery of specified outputs or projects, the relevant Commonwealth Minister or delegate will make a determination, based upon expenditure and performance reporting arrangements set out in the National Partnership, as to whether the facilitation or project payment will be paid.
11. Where the achievement of a performance benchmark is not required before a payment is made to a State, payments will be scheduled in accordance with the payment profile set out in the National Partnership.
Part 3 — National Partnership Payments
Determination
12. In accordance with subsection 16(1) of the Act, the amounts specified in Table 1 are to be paid to the States specified in that table for the purpose of making a grant of financial assistance to:
(a) support the delivery by the States of specified outputs or projects;
(b) facilitate reforms by the States; or
(c) reward the States for nationally significant reforms.
Table 1: National Partnership payments for payment on 7 October 2016
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 October 2016.
14. Schedule 1 to this determination provides further information on these payments.
Debit limits
15. Subsection 16(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making National Partnership payments in the financial year starting on 1 July 2016 must not exceed $10,416,666,667.
16. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of National Partnership payments under section 16 of the Act, including this determination.
Table 2: Total cumulative payments of National Partnership payments in 2016-17
17. The total amount determined for National Partnership payments 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 (National Partnership payments) Determination No. 112 (October 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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 (National Partnership payments) Determination No. 112 (October 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 January 2009. The Intergovernmental Agreement provides an overarching framework for financial transfers between the Commonwealth and the States and related collaboration on policy development and service delivery.
State includes the Australian Capital Territory and the Northern Territory.
Exemption from section 42 (disallowance) of the Legislative Instruments Act 2003
4. Subsection 16(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 16 of the Act, for the purpose of providing grants of financial assistance to a State to:
(a) support the delivery by the State of specified outputs or projects;
(b) facilitate reforms by the State; or
(c) reward the State for nationally significant reforms.
Terms and conditions
6. Subsection 16(2) of the Act requires that an amount determined under subsection 16(1) must be credited to the COAG Reform Fund. 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.
7. 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.
8. ‘Schedule D — Payment Arrangements’ to the Intergovernmental Agreement provides that the Commonwealth will make National Partnership payments to the States to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.
9. National Partnerships will clearly set out the payment profile in respect of each State.
10. Where the achievement of pre‑determined milestones or performance benchmarks is required before a payment is made to a State:
(a) in the case of payments to reward nationally significant reforms, the relevant Commonwealth Minister or delegate will make a determination as to whether the incentive payment will be paid following receipt of an independent assessment as to whether a pre-determined performance benchmark has been achieved; and
(b) in the case of payments to facilitate reform and to support the delivery of specified outputs or projects, the relevant Commonwealth Minister or delegate will make a determination, based upon expenditure and performance reporting arrangements set out in the National Partnership, as to whether the facilitation or project payment will be paid.
11. Where the achievement of a performance benchmark is not required before a payment is made to a State, payments will be scheduled in accordance with the payment profile set out in the National Partnership.
Part 3 — National Partnership Payments
Determination
12. In accordance with subsection 16(1) of the Act, the amounts specified in Table 1 are to be paid to the States specified in that table for the purpose of making a grant of financial assistance to:
(a) support the delivery by the States of specified outputs or projects;
(b) facilitate reforms by the States; or
(c) reward the States for nationally significant reforms.
Table 1: National Partnership payments for payment on 7 October 2016
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 October 2016.
14. Schedule 1 to this determination provides further information on these payments.
Debit limits
15. Subsection 16(3) of the Act provides that the total amount credited to the COAG Reform Fund for the purpose of making National Partnership payments in the financial year starting on 1 July 2016 must not exceed $10,416,666,667.
16. The amounts specified in Table 2 are the total amounts determined in the 2016-17 financial year in respect of National Partnership payments under section 16 of the Act, including this determination.
Table 2: Total cumulative payments of National Partnership payments in 2016-17
17. The total amount determined for National Partnership payments to date in the 2016-17 financial year does not exceed the debit limit.
Provision of financial assistan
This is an opening excerpt, not the complete document.