This Determination directs the Treasurer to credit specified sums to the COAG Reform Fund and to pay those sums to States as National Partnership payments (scheduled for 7 March 2017). It sets the payment schedule and ties the payments to National Partnership agreements that define the terms under which funds are used.
Where payments are milestone‑dependent the Commonwealth Minister or delegate decides whether to pay following independent assessment or expenditure/performance reporting. The Determination also confirms the 2016–17 debit cap of $25 billion is respected.
This Determination, the Federal Financial Relations (National Partnership payments) Determination No. 117 (March 2017), is a Treasurer’s instrument made under section 16 of the Federal Financial Relations Act 2009 (the Act). It determines that specified amounts are to be paid to particular States as National Partnership payments, and sets the legal and administrative framework by which those payments are to be credited, assessed and made. The instrument was signed by the Treasurer, Scott John Morrison, and dated 3 March 2017; it commences on the day it was made (para 2; signature block).
Mechanically the Determination does four main things that are explicit in the text:
It states the purpose for the payments: to support delivery of specified outputs or projects by States, to facilitate state reforms, or to reward States for nationally significant reforms (para 5).
It requires that amounts determined under subsection 16(1) of the Act be credited first to the COAG Reform Fund, a Special Account established under the COAG Reform Fund Act 2008 and subject to the Public Governance, Performance and Accountability Act 2013 (para 6).
It specifies that the amounts in Table 1 (and further detail in Schedule 1) are to be paid to the States named in those tables on 7 March 2017, and that the total determined in the 2016-17 year does not exceed the debit limit set by subsection 16(3) of the Act ($25,000,000,000) (paras 12-17).
It removes an avenue of parliamentary oversight present in many legislative instruments: although the instrument is a legislative instrument under subsection 16(5) of the Act, section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it (para 4).
The Determination also sets out the terms and conditions architecture. It ties payments to written agreements between the Commonwealth and States (COAG Reform Fund Act s7(2) quoted in para 7), and points to the Intergovernmental Agreement on Federal Financial Relations (Schedule D , Payment Arrangements) as the overarching framework for National Partnerships and their payment profiles (paras 6-9). Where payments are contingent on milestones or performance benchmarks, the relevant Commonwealth Minister or delegate exercises a determination power, guided by independent assessment for incentive payments and by expenditure and performance reporting for facilitation or project payments (para 10). Where no benchmark is required, payments are made according to the payment profile in the National Partnership (para 11).
Current sections
Direct links to the current provisions in Federal Financial Relations (National Partnership payments) Determination No. 117 (March 2017).
This determination is the Federal Financial Relations (National Partnership payments) Determination No. 117 (March 2017).
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 March 2017
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 March 2017.
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 $25,000,000,000.00.
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. 117 (March 2017).
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. 117 (March 2017).
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 March 2017
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 March 2017.
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 $25,000,000,000.00.
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. 117 (March 2017).
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 March 2017
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 March 2017.
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 $25,000,000,000.00.
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 March 2017
Table 1: National Partnership payments for payment on 7 March 2017
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 March 2017.
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 $25,000,000,000.00.
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
This determination is the Federal Financial Relations (National Partnership payments) Determination No. 117 (March 2017).
Commencement
2. This determination commences on the day on which this determination is made.
Definitions
The instrument thus operationalises section 16 of the Act for a tranche of payments in March 2017, reiterates the administrative path (credit to COAG Reform Fund, written agreements, payment scheduling) and documents compliance with the debit limit for 2016-17. Numeric details of recipients and amounts are contained in Table 1, Table 2 and Schedule 1, which are embedded as images in the instrument (paras 12-17, Schedule 1).
Main concepts
The Determination relies on and clarifies several core concepts. They are defined or invoked in the text; the following explains their meaning and linkages as the instrument itself presents them.
National Partnership payments: The instrument treats National Partnership payments as grants of financial assistance made by the Commonwealth to States for three listed purposes: supporting delivery of specified outputs or projects; facilitating reforms; and rewarding States for nationally significant reforms (para 5; para 12). The payments are made under the Federal Financial Relations Act 2009 framework and Schedule D of the Intergovernmental Agreement on Federal Financial Relations (para 8).
COAG Reform Fund and Special Account treatment: The COAG Reform Fund, established by the COAG Reform Fund Act 2008, is expressly the account through which National Partnership payments are to be channelled. An amount determined under subsection 16(1) of the Act must be credited to the COAG Reform Fund before payment (para 6; para 13). The COAG Reform Fund is a Special Account for PGPA Act purposes (para 6).
Payment profiling and National Partnerships: The instrument emphasises that National Partnerships must clearly set out the payment profile for each State (para 9). The payment profile governs timing and conditions. When payments are unconditional on specified performance benchmarks, payments follow that profile (para 11).
Conditional payments, incentives and assessments: The Determination draws a three-way distinction between three payment types and the decision rules that apply: (a) incentive payments to reward nationally significant reforms , these require an independent assessment and a determination by the Commonwealth Minister or delegate on whether the payment will be made (para 10(a)); (b) facilitation or project payments , these are determined by the Minister or delegate based on expenditure and performance reporting arrangements in the National Partnership (para 10(b)); and (c) payments that do not require achievement of a benchmark , these are scheduled according to the payment profile (para 11).
Legislative instrument status and disallowance exemption: The document expressly notes that subsection 16(5) of the Act makes the instrument a legislative instrument, but states that section 42 of the Legislative Instruments Act 2003 (the usual disallowance mechanism) does not apply (para 4). That alters the ordinary parliamentary disallowance oversight for this instrument.
Debit limit: The Determination recognises the statutory debit limit under subsection 16(3) of the Act , the total credited to the COAG Reform Fund for National Partnership payments in the 2016-17 year must not exceed $25,000,000,000.00 (para 15). The Determination includes Table 2 (image) showing totals determined in 2016-17, and records that the total after this Determination does not exceed the debit limit (para 17).
These concepts create a payment architecture: amounts are formally determined under section 16 of the Act, channelled via the COAG Reform Fund Special Account, governed by written National Partnership agreements for each State, and paid either upon meeting performance benchmarks (with independent assessment and ministerial/delagate determination) or according to an agreed schedule where no benchmarks apply. The instrument affirms that the Treasury/Treasurer and relevant Commonwealth Minister or delegate hold the decision powers to make the determinations called for by para 10.
Who it affects
The Determination creates rights and obligations for several categories of actors. The text itself identifies the parties and the operational relationships.
The Commonwealth: The Commonwealth decides the amounts to be credited and paid, credits those amounts to the COAG Reform Fund, and exercises the determination power for conditional payments via the relevant Commonwealth Minister or delegate (paras 6, 10, 12, 13). The document was made by the Treasurer under section 16 of the Act and thus the Treasury (and ministerial offices) are the administrative actors responsible for execution.
States: The recipients are the States, explicitly defined to include the Australian Capital Territory and the Northern Territory for the purpose of this Determination (para 3). States are the intended grantees that will receive payments to support specified outputs or projects, facilitate reforms, or receive reward payments for nationally significant reforms (para 5; para 12).
Commonwealth Minister or delegate: The Determination designates the relevant Commonwealth Minister or delegate as the decision-maker when payments are conditional. For incentive payments that reward reforms, the Minister or delegate makes a determination after receipt of an independent assessment (para 10(a)). For facilitation or project payments, the Minister or delegate determines payment based on expenditure and performance reporting in the National Partnership (para 10(b)).
Independent assessors and reporting entities: The mechanism envisages “independent assessment” for incentive payments (para 10(a)) and “expenditure and performance reporting arrangements” under National Partnerships for facilitation/project payments (para 10(b)). Although the Determination does not name the assessors or reporting entities, it makes their outputs a condition precedent to ministerial determinations.
Public Governance and Accountability framework users: Because the COAG Reform Fund is a Special Account for the purposes of the Public Governance, Performance and Accountability Act 2013, agencies administering and receiving funds must comply with PGPA requirements where relevant (para 6). The COAG Reform Fund Act 2008 requires written agreements specifying terms and conditions of assistance (para 7).
Parliament and oversight actors: The Determination’s status as a legislative instrument is expressly stated, but it is also expressly exempted from disallowance under section 42 of the Legislative Instruments Act 2003 (para 4). This affects the parliamentary tools available to scrutinise or disallow the instrument.
Practical immediate effects on these actors, as the instrument frames them, include:
For States: requirement to enter written National Partnership agreements; potential obligations to meet performance milestones and produce expenditure/performance reports; receipt of scheduled or contingent payments according to agreement profiles (paras 6-11, 13-14).
For the Commonwealth Minister/delegate: a statutory decision-making obligation to determine payment under the rules in para 10, including reliance on independent assessments or reporting as provided for in the National Partnership.
For independent assessors and State reporting officers: the creation of demand for assessments and reports as conditions for payments, incurring cost and compliance burden borne by States and by any contracted assessors.
The instrument therefore affects fiscal flows between Commonwealth and States, obliges States to make reporting and performance arrangements under National Partnerships, and concentrates determination authority with the Commonwealth Minister/delegate (with the Treasury/COAG Reform Fund as the conduit).
Key duties and rights
The Determination places several specific duties on the Commonwealth and on the States, and creates rights to payment under stated conditions. The following sets out those duties and rights as the Determination expresses them.
Duties and procedural obligations imposed on the Commonwealth or its ministers/delegates:
To make the specified payments by crediting amounts to the COAG Reform Fund before paying the States (paras 6 and 13). This is a procedural duty: amounts determined under subsection 16(1) must first be credited to the Special Account (para 6; para 13).
To ensure that the total credited for National Partnership payments in 2016-17 does not exceed the debit limit of $25,000,000,000.00 set by subsection 16(3) of the Act (para 15). The instrument records that totals to date (inclusive of this Determination) remain under the limit (para 16-17).
To make determinations about payment where payment is contingent upon milestones or performance benchmarks: for incentive payments, the Minister/delegate must make a determination following receipt of an independent assessment about achievement of the benchmark; for facilitation/project payments, the Minister/delegate must make a determination based on expenditure and performance reporting set out in the National Partnership (para 10(a)-(b)).
Rights and obligations of States:
Right to receive payments specified in Table 1 and Schedule 1, subject to the payment profiles and conditions in the relevant National Partnership and to any determinations under para 10 (paras 12-14).
Obligation to enter into written agreements with the Commonwealth that set out the terms and conditions on which financial assistance is granted through the COAG Reform Fund, consistent with subsection 7(2) of the COAG Reform Fund Act 2008 (para 7).
Obligation to comply with reporting arrangements (expenditure and performance reporting) and to facilitate independent assessment where required by the National Partnership to secure incentive payments (para 10).
Administrative rights and duties arising from National Partnership design:
National Partnerships are required to “clearly set out the payment profile in respect of each State” (para 9). That creates a contractual/administrative duty on the parties (Commonwealth and State) to include clear payment scheduling and conditionality in the written National Partnership.
Where no benchmark is required, payments are to be scheduled according to the agreed payment profile (para 11). That gives States a predictable entitlement to scheduled payments, assuming profile terms are met.
Statutory status and oversight:
The Determination explicitly states it is a legislative instrument under subsection 16(5) of the Act, but that section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply (para 4). The effect is that the usual parliamentary disallowance tool is not available for this statutory instrument. The Determination does not itself create or define judicial review rights; it records ministerial and administrative decision rules for payments.
Financial management and accountability:
The COAG Reform Fund is a Special Account as defined for the PGPA Act, which frames obligations around use of Special Accounts and likely reporting and appropriation treatment (para 6). The Determination therefore embeds National Partnership payments in existing Commonwealth financial-management architecture.
In sum, duties fall on the Commonwealth to credit and to determine payment where conditions apply, and on States to execute written agreements, meet reporting and milestone requirements where applicable, and receive payments under the schedule or after ministerial determination. Rights are primarily the States’ entitlement to the agreed payments once the contractual or conditional terms set out in the National Partnership and this Determination have been satisfied.
Penalties and enforcement
The text of the Determination does not itself create criminal penalties or civil fines; it establishes the administrative framework for making payments, and prescribes decision-making steps and account-handling requirements. The following summarises the enforcement-related mechanisms that the Determination itself does provide, and the enforcement gaps or delegation points implied by the text.
Enforcement mechanisms evident in the Determination:
Conditionality and suspension by decision: The Determination requires that where payments are contingent on pre-determined milestones or performance benchmarks, the relevant Commonwealth Minister or delegate determines whether a payment will be made, relying on independent assessment (for incentive payments) or expenditure and performance reporting (for facilitation or project payments) (para 10). This creates an administrative enforcement lever: the Minister/delegate may withhold payment where benchmarks are not met, subject to the Determination and the National Partnership terms.
Written agreement and reporting obligations: The COAG Reform Fund Act 2008 requires the terms and conditions on which assistance is granted through the Fund to be set out in a written agreement between the Commonwealth and the State (para 7). That written agreement is the contract vehicle through which compliance requirements and enforcement (e.g., repayment obligations, clawback provisions, reporting, audit rights) would be established. The Determination itself repeatedly points to the National Partnership and Schedule 1 for further information (paras 8-9; paras 13-14; Schedule 1), implying that enforceable contractual provisions reside in those documents rather than in the Determination.
Special Account and PGPA requirements: Because funding is channelled via the COAG Reform Fund as a Special Account for PGPA purposes (para 6), general PGPA Act obligations on proper use of funds, financial reporting, and account administration apply to the Fund and to Commonwealth agencies. Those statutory regimes impose administrative accountability and auditing obligations which function as enforcement and oversight tools, although specific enforcement consequences (e.g., recovery of misapplied funds) would normally be addressed in the written agreement or under PGPA mechanisms.
Debit limit compliance: The Determination records the statutory debit limit under subsection 16(3) of the Act ($25,000,000,000) and that cumulative payments do not exceed it (paras 15-17). The debit limit functions as a statutory cap and compliance requirement; breaching the limit would contravene subsection 16(3). The Determination evidences compliance with that cap for 2016-17.
What the Determination does not itself provide:
It does not set out penal provisions, sanctions, or specific recovery clauses in the text of the Determination. Instead, enforcement and sanction mechanisms would be expected to appear in the National Partnership written agreements or in underlying Acts (COAG Reform Fund Act, PGPA Act, or other Commonwealth or State laws). The Determination points to these instruments but does not replicate contractual penalty clauses.
It does not specify internal appeal or merits-review procedures for States dissatisfied with a ministerial determination under para 10. The Determination establishes the Minister/delegate as the decision-maker but does not prescribe procedural fairness measures, internal review rights, or dispute-resolution processes in the Determination text itself. Such procedural safeguards, if any, would typically be found in the National Partnership agreements or in general administrative law.
Practical enforcement implications:
The practical ability to enforce compliance with reporting and milestones therefore relies on the written agreements (National Partnerships), on the Minister/delegate’s exercise of discretion under para 10, and on the broader financial-management and administrative-law frameworks (PGPA obligations, contractual remedies, and potentially judicial review in appropriate cases). The instrument centralises the withholding of payment as the immediate enforcement lever and relies on agreement terms and special-account administration for more detailed enforcement or recovery measures.
Because the Determination does not invent or restate penalty regimes, users should consult the specific National Partnership agreements, the COAG Reform Fund Act 2008, and PGPA Act obligations for concrete enforcement provisions and remedies.
How it interacts with other laws
The Determination locates itself within and cross-references a set of legislative instruments and agreements. The text expressly positions the Determination as an instrument under the Federal Financial Relations Act 2009 and ties payment handling and contractual requirements to other statutes and intergovernmental instruments. The relevant interactions the Determination itself records are:
Federal Financial Relations Act 2009: The Determination is made under section 16 of that Act (para 1/signature section). Subsection 16(1) is the head power used to determine the payment amounts; subsection 16(2) requires amounts to be credited to the COAG Reform Fund; subsection 16(3) sets the debit limit ($25,000,000,000) invoked in para 15; and subsection 16(5) makes the instrument a legislative instrument (para 4). The Determination thus operationalises and records compliance with the statutory mechanics and limits in section 16 of the Federal Financial Relations Act.
COAG Reform Fund Act 2008: The Determination repeatedly refers to and relies on the COAG Reform Fund established by that Act. Paragraph 6 states that subsection 16(2) of the Federal Financial Relations Act requires amounts to be credited to the COAG Reform Fund, and that the COAG Reform Fund Act 2008 established the Fund and specifies it is a Special Account under the PGPA Act. Paragraph 7 cites subsection 7(2) of the COAG Reform Fund Act 2008 as requiring that the terms and conditions on which assistance is granted through the Fund be set out in a written agreement between Commonwealth and State. Therefore, the Determination relies on the COAG Reform Fund Act for account structure and contract requirements.
Public Governance, Performance and Accountability Act 2013 (PGPA Act): The Determination notes that the COAG Reform Fund is a Special Account for purposes of the PGPA Act (para 6). As a Special Account, the Fund is subject to the PGPA Act’s financial-management and reporting norms. Thus the Determination’s direction to credit amounts to the Fund implicates PGPA special-account administration and accountability rules.
Intergovernmental Agreement on Federal Financial Relations (Intergovernmental Agreement): The Determination references the Intergovernmental Agreement and its Schedule D , Payment Arrangements , as supplying the overarching framework for National Partnerships and payment profiles (para 8). The Determination therefore operates within that intergovernmental context: National Partnerships between Commonwealth and State are expected to conform to the Intergovernmental Agreement’s payment-arrangement structures.
Legislative Instruments Act 2003: The Determination acknowledges that the instrument is a legislative instrument but explicitly states that the disallowance mechanism in section 42 of the Legislative Instruments Act 2003 does not apply (para 4). This interaction affects parliamentary oversight rights under that Act.
Written agreements (National Partnership agreements): The Determination declares that terms and conditions of assistance are to be set out in written agreements between Commonwealth and State consistent with the COAG Reform Fund Act 2008 (para 7). These agreements are the contractual layer that operationalises the Determination’s payments and are therefore legal instruments interacting with contract law, administrative law, and the PGPA regime.
What the Determination does not attempt to do:
It does not replace or summarise every provision of the COAG Reform Fund Act, the PGPA Act, or the Intergovernmental Agreement. Instead it cross-references those instruments and incorporates by reference the obligation that National Partnerships set payment profiles and that written agreements contain terms and conditions (paras 6-9).
It does not provide an exhaustive statutory code of rights, remedies or penalties; it relies on the underlying Acts and the National Partnership agreements for the finer legal detail.
Net effect: the Determination functions as a s16 instrument that binds together statutory payment powers (Federal Financial Relations Act), account management and agreement requirements (COAG Reform Fund Act, PGPA Act), intergovernmental payment architecture (Intergovernmental Agreement Schedule D), and the legislative-instrument machinery (Legislative Instruments Act), while exempting the instrument from disallowance under s42 of the Legislative Instruments Act 2003 (para 4). To understand precise enforcement, dispute resolution, audit and repayment provisions that might apply to any specific payment, one must consult the corresponding National Partnership written agreement and the underlying Acts invoked by the Determination.
Amendment history
The Determination text provided contains a single instrument dated 3 March 2017. The text repeats certain parts (for example, the Part 1 preliminary, Part 2 purpose, and Part 3 sections appear multiple times in the supplied copy), but there is no explicit note within the text of any prior versions, revocations, or formal amendments to this Determination. The instrument itself includes the following relevant temporal and formal details:
Date and commencement: The signature block shows the Treasurer dated the Determination 3 March 2017, and para 2 states that the Determination commences on the day on which it is made (paras in Part 1). That gives a clear single commencement date tied to the instrument’s making.
Legislative basis for amendment or revocation: The Determination is made under section 16 of the Federal Financial Relations Act 2009 (para 1), which sets the legal framework for making such determinations. Any amendment to this Determination would therefore need to follow the amendment procedures applicable to legislative instruments made under that Act, though the Determination itself does not set out amendment mechanics.
Disallowance exemption: Paragraph 4 records that subsection 16(5) of the Act makes the Determination a legislative instrument but that section 42 of the Legislative Instruments Act 2003 does not apply. That means the usual parliamentary disallowance mechanism is not available to amend or disallow this instrument through Parliament under s42; amendment instead proceeds by executive re-issuance or other statutory mechanisms as allowed under the parent statute.
Debit limit continuity: The Determination affirms compliance with the subsection 16(3) debit limit for the 2016-17 financial year (paras 15-17). Any amendment increasing total amounts credited in that year would need to respect the debit limit in subsection 16(3).
Because the supplied text contains no formal amendment record,no "Amendments" schedule, no list of previous determinations that it amends or replaces, and no notation of supersession,the instrument appears to be an original determination for the amounts specified on 7 March 2017. Users who require the formal amendment history, reprints, or any subsequent variations should consult:
the Federal Register of Legislation (where instruments and their amendment history are maintained), and
any subsequent determinations or instruments made under section 16 of the Federal Financial Relations Act 2009.
The duplication of content within the supplied copy is likely a formatting or transcription artefact and does not, in this text, indicate separate amending instruments. No explicit revocation clause or history is recorded in the provided text.
Litigation history
The Determination text supplied contains no references to judicial decisions, legal challenges, court orders, or litigation involving this instrument. It does not cite cases, nor does it record that it has been the subject of judicial review or other litigation. The instrument makes two points that have litigation-relevance but do not themselves report litigation:
Legislative instrument status and disallowance exemption: The Determination records (para 4) that it is a legislative instrument (subsection 16(5) of the Act) and that section 42 of the Legislative Instruments Act 2003 (disallowance) does not apply. That narrows the parliamentary oversight path but does not foreclose judicial review; the Determination does not comment on judicial-review rights or past challenges.
Ministerial discretion and independent assessment: The Determination confers decision-making power on the relevant Commonwealth Minister or delegate to make determinations about conditional payments after receipt of independent assessments or based on expenditure and performance reporting (para 10). Such ministerial determinations could, in principle, be the subject of administrative-law challenges in other contexts. The Determination itself, however, contains no account of litigation, nor does it set out internal appeals or merits-review mechanisms.
Given the absence of litigation references in the text, the Determination does not establish a litigation history amenable to reporting here. Practitioners seeking litigation records or precedents involving this Determination should search federal court and administrative review databases for any judicial review applications challenging Ministerial determinations, COAG Reform Fund decisions, or the use of the debit limit, and review subsequent legislative instruments for any corrective amendments prompted by litigation. The Determination itself provides no such entries.
Gotchas
The Determination is short and conceptually straightforward, but several practical issues and traps for practitioners arise from its text and the forms it references. The following points are practical cautions grounded in what the Determination says.
Numeric details are in embedded images not rendered as text in the supplied copy: The amounts payable, recipients and cumulative totals are contained in Table 1, Table 2 and Schedule 1, which appear in the text as images (image.001.png, image.002.png, image.003.png, image.004.png). The Determination repeatedly records that those tables and Schedule 1 provide the amounts and further information (paras 12-14; paras 16-17). If you need the specific dollar amounts or the identity of line items, do not rely on the plain-text portions alone , consult the original determination as published so you can read the images or the official consolidated instrument.
Disallowance by Parliament is not available: Although this instrument is a legislative instrument (subsection 16(5) of the Act), section 42 (disallowance) of the Legislative Instruments Act 2003 does not apply to it (para 4). That removes the common parliamentary mechanism to disallow the instrument; it changes the oversight and political-accountability landscape. Practitioners should note that the usual Parliamentary disallowance option is not an avenue to resist the Determination.
Payment depends on written National Partnership agreements: The Determination requires (via COAG Reform Fund Act subsection 7(2) cited in para 7) that terms and conditions of assistance are set out in a written agreement between Commonwealth and State. The Determination itself does not list the contractual terms (e.g. audit rights, repayment obligations, clawbacks); those terms will be in the National Partnership. Parties should not assume any particular contractual term exists unless it is in the written National Partnership.
Ministerial/delegate discretion and uncertain procedural protections: Para 10 gives the Commonwealth Minister or delegate the power to determine whether a payment will be made following independent assessment (for incentive payments) or based on expenditure and performance reporting (for facilitation/project payments). The Determination does not specify procedural fairness procedures, timelines, or internal review mechanisms for such ministerial determinations. That may create practical uncertainty for a State about the decision-making process and remedy options.
Independent assessment requirement: For incentive payments, payment requires receipt of an independent assessment followed by a ministerial determination (para 10(a)). This imposes an external-cost requirement (payment for assessments, choice of assessor, potential disputes about assessor scope and terms). The Determination does not specify who appoints the assessor or how independence is established; those details will likely be in the National Partnership.
Debit limit compliance: The instrument records a statutory debit limit of $25,000,000,000 for 2016-17 (para 15) and asserts that the cumulative payments to date do not exceed it (para 17). Practitioners should verify calculations if advising on additional determinations in the same financial year, because breach of that limit would be a statutory non-compliance.
The COAG Reform Fund Special Account triggers PGPA implications: Because payments are credited to a Special Account under the PGPA Act (para 6), agencies administering and states receiving payments should be alert to PGPA rules on Special Accounts, financial reporting, and accountability. The Determination itself does not restate those PGPA obligations.
Format duplication in the supplied copy: The provided text contains repeated blocks of the same provisions. For legal certainty, consult the version on the Federal Register of Legislation or the official Gazette to ensure you are working from the authoritative consolidated text.
No explicit dispute-resolution clause in the Determination: The instrument relies on National Partnership agreements for terms and conditions. If a State has a dispute about a ministerial determination or payment deduction, the path to resolution will depend on the written agreement, possible administrative-review options, and broader common-law or statutory remedies , none of which the Determination itself specifies.
Timing and cash-flow considerations: Paragraph 13 requires that amounts be credited to the COAG Reform Fund before being paid on 7 March 2017. Payment scheduling therefore depends on timely administrative steps within Commonwealth accounting practice. States reliant on funds should plan for the operational timing constraints described.
In short, the Determination sets out a payment architecture but delegates substantive contractual detail to National Partnership agreements, delegates decisions to Minister/delegate discretion in conditional cases, and places numeric specifics in images that must be read directly. Practitioners should check the original instrument for numeric tables and consult the relevant National Partnership for contract terms and dispute-resolution processes.
How to comply
Complying with the Determination requires attention at two levels: (1) Commonwealth administrative execution under the Determination and the Federal Financial Relations Act framework; and (2) State practical compliance to secure payments under National Partnership written agreements. The Determination itself identifies the principal compliance steps and the legal vehicles that create obligations.
Steps for Commonwealth administrators (Treasury, relevant Minister’s office, and agencies):
Credit the determined amounts to the COAG Reform Fund Special Account before any payment to a State, in accordance with subsection 16(2) of the Act and para 6 and para 13. Ensure departmental accounting systems treat the amounts as credited before transfer, consistent with PGPA Special Account rules (para 6).
Verify debit-limit headroom for the financial year. Confirm that cumulative amounts determined for the 2016-17 financial year, including this Determination, do not exceed the statutory debit limit of $25,000,000,000 set in subsection 16(3) (paras 15-17). Maintain contemporaneous records and a table of prior determinations to support clearance.
Ensure the relevant National Partnership agreements are in place and “clearly set out the payment profile” for each State (para 9). Before disbursing funds, verify that the written agreement between Commonwealth and State contains the terms and conditions required by subsection 7(2) of the COAG Reform Fund Act 2008 (para 7).
For contingent payments, implement the decision process laid out in para 10:
For incentive payments that reward nationally significant reforms, arrange for an independent assessment as required by the National Partnership; only after receipt of that assessment should the Minister or delegate make a determination (para 10(a)).
For facilitation/project payments, ensure expenditure and performance reporting is submitted in the form and timing set out in the National Partnership, and base the Ministerial/delgate determination upon that reporting (para 10(b)).
Document delegation instruments where the Minister delegates determination power, and adopt clear procedural steps for determining whether benchmarks have been met; preserve records that would be necessary if decisions are reviewed (the Determination does not set out procedural fairness requirements, so administrative best practice should be followed).
Steps for States (and State agencies seeking payment):
Negotiate and enter written National Partnership agreements that set out clear payment profiles and the terms and conditions of assistance as required by subsection 7(2) of the COAG Reform Fund Act 2008 (para 7). Ensure the payment profile, milestones, reporting formats, assessment arrangements and any dispute-resolution clauses are explicit.
Where payments are conditional on milestones or performance benchmarks, plan for independent assessment costs and timing. Agree in the National Partnership on the identity, selection process, scope, and terms for any independent assessor to avoid later disputes that could delay payment under para 10(a).
Establish robust expenditure and performance reporting systems aligned with the reporting arrangements specified in the National Partnership to support facilitation/project payments (para 10(b)). Timely, auditable reports will be the basis for ministerial determinations to release payments.
Keep in mind that payments will be scheduled according to the payment profile where no benchmark is required (para 11). Ensure internal budget and cash-flow planning reflects scheduled arrival dates and the Determination’s requirement that Commonwealth credit amounts to the COAG Reform Fund before paying the State (para 13).
Plan for audit and PGPA-reporting obligations arising from the Special Account treatment of the COAG Reform Fund (para 6). Ensure your financial controllers understand the PGPA implications and the need to comply with any audit or oversight requests under Commonwealth and State arrangements.
If a payment is withheld or reduced by a ministerial determination, carefully review the National Partnership terms to identify contractual remedies, internal review clauses, or dispute-resolution mechanisms. The Determination itself delegates payment decisions to the Minister/delegate but does not prescribe dispute procedures (para 10); those remedies will usually be in the written agreement.
Keep records and documentation to demonstrate the achievement of milestones and the adequacy of reported expenditure. Because ministerial determination on whether benchmarks are met is tied to independent assessment or to reporting, evidentiary preparedness is essential to secure an affirmative determination.
Practical document and process checklist:
Obtain and retain the authoritative published Determination (to read Tables and Schedule 1 images for numeric details).
Ensure the National Partnership agreement references the Determination and includes: payment profiles, milestone definitions, independent-assessment arrangements, reporting templates and schedules, audit and repayment/clawback clauses, dispute resolution and timelines for ministerial decisions.
For incentive payments, ensure access to appropriately qualified independent assessors and contractual terms for those assessors acceptable to both Commonwealth and State, to avoid future disagreements.
Establish corporate governance arrangements for monitoring compliance with National Partnership obligations and for communicating with the Commonwealth on performance reporting cadence.
Finally, administrative best practice dictates that both Commonwealth and State bodies adopt transparent written procedures for ministerial determinations, maintain contemporaneous records on assessments and reporting, and consult the authoritative Determination and the relevant National Partnership when in doubt about entitlements and obligations. The Determination supplies the legal scaffolding (credit to the COAG Reform Fund, ministerial determination rules, debit-limit constraints) but relies on the National Partnerships and other Acts for the contract-level detail that will determine ultimate compliance and enforcement outcomes.
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 March 2017
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 March 2017.
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 $25,000,000,000.00.
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. 117 (March 2017).
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. 117 (March 2017).
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 March 2017
13. These amounts will be credited to the COAG Reform Fund before being paid to the States on 7 March 2017.
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 $25,000,000,000.00.
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 assist
This is an opening excerpt, not the complete document.