Federal Financial Relations (National Specific Purpose Payments) Determination 2015-16
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legislative instrument
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This Determination sets the 2015–16 uprating rules, total dollar amounts and state-by-state payments for three national specific purpose payments: disability services, skills and workforce development, and housing services. It prescribes how each payment is indexed (a five‑year rolling nominal GDP average for disability; a weighted Wage Cost Index mix for skills; Wage Cost Index 1 for housing) and fixes the 2015–16 totals and distributions. It therefore determines Commonwealth budget flows to States and the conditions attaching to those funds.
This Determination, titled the Federal Financial Relations (National Specific Purpose Payments) Determination 2015-16, is a Part 3 instrument under the Federal Financial Relations Act 2009 (the Act). It was made by the Treasurer, Scott John Morrison, and is dated 2 September 2016. The instrument commences on the day it is made (see commencement clause 2) and adopts definitions used throughout (see clause 3: Act means the Federal Financial Relations Act 2009; State includes the Australian Capital Territory and the Northern Territory).
Mechanically, the Determination does three things for the 2015-16 financial year:
It fixes the indexation method for the national specific purpose payment (NSPP) for disability services, and states the 2015-16 total amount for that NSPP (clauses 4-6). The indexation for disability services is specified as a rolling five‑year average of nominal Gross Domestic Product year‑on‑year growth (cl 4). The 2015-16 total amount for disability services, adjusted in accordance with the indexation provision of the Act referenced in the Determination, is $1,438,826,480.90 (cl 5). Clause 6 directs that the amounts specified in Table 1 are to be paid in 2015-16 to the States specified in that table for expenditure on disability services.
It fixes the indexation method for the NSPP for skills and workforce development, and states the 2015-16 total amount for that NSPP (clauses 7-9). The indexation is a composite Wage Cost Index formula: 85 per cent Wage Cost Index 1 (itself defined as a safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent) plus 15 per cent Wage Cost Index 6 (safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent) (cl 7). The 2015-16 total amount is $1,455,484,015.83 (cl 8). Clause 9 directs that amounts in Table 2 are to be paid to States for skills and workforce development in 2015-16.
Current sections
Direct links to the current provisions in Federal Financial Relations (National Specific Purpose Payments) Determination 2015-16.
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Federal Financial Relations (NATIONAL SP
Federal Financial Relations (NATIONAL SPECIFIC PURPOSE PAYMENTS) DETERMINATION 2015-16
Federal Financial Relations (NATIONAL SPECIFIC PURPOSE PAYMENTS) DETERMINATION 2015-16
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
State includes the Australian Capital Territory and the Northern Territory.
PArt 2 — National Specific purpose payments
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payment for disability services, 2015-16
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum of:
85 per cent Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent); and
15 per cent Wage Cost Index 6 (comprising safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent).
8. For the purposes of paragraph 12(2)(c) of the Act, the 2015-16 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the Act is $1,455,484,015.83.
9. In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on skills and workforce development.
Table 2: National specific purpose payment for skills and workforce development, 2015-16
National specific purpose payment for housing services
10. In accordance with subsection 14(4) of the Act, the indexation applied to the housing services national specific purpose payment from the previous financial year will be Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent).
11. For the purposes of paragraph 14(2)(c) of the Act, the 2015\-16 total amount for the housing services national specific purpose payment indexed in accordance with subsection 14(4) of the Act is $1,324,051,803.62.
12. In accordance with subsection 14(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 3: National specific purpose payment for housing services, 2015-16
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
State includes the Australian Capital Territory and the Northern Territory.
PArt 2 — National Specific purpose payments
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payment for disability services, 2015-16
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum of:
85 per cent Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent); and
15 per cent Wage Cost Index 6 (comprising safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent).
8. For the purposes of paragraph 12(2)(c) of the Act, the 2015-16 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the Act is $1,455,484,015.83.
9. In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on skills and workforce development.
Table 2: National specific purpose payment for skills and workforce development, 2015-16
National specific purpose payment for housing services
10. In accordance with subsection 14(4) of the Act, the indexation applied to the housing services national specific purpose payment from the previous financial year will be Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent).
11. For the purposes of paragraph 14(2)(c) of the Act, the 2015\-16 total amount for the housing services national specific purpose payment indexed in accordance with subsection 14(4) of the Act is $1,324,051,803.62.
12. In accordance with subsection 14(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 3: National specific purpose payment for housing services, 2015-16
National specific purpose payment for disability services
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payme
Table 1: National specific purpose payment for disability services, 2015-16
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
State includes the Australian Capital Territory and the Northern Territory.
PArt 2 — National Specific purpose payments
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payment for disability services, 2015-16
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum of:
85 per cent Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent); and
15 per cent Wage Cost Index 6 (comprising safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent).
8. For the purposes of paragraph 12(2)(c) of the Act, the 2015-16 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the Act is $1,455,484,015.83.
9. In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on skills and workforce development.
Table 2: National specific purpose payment for skills and workforce development, 2015-16
National specific purpose payment for housing services
10. In accordance with subsection 14(4) of the Act, the indexation applied to the housing services national specific purpose payment from the previous financial year will be Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent).
11. For the purposes of paragraph 14(2)(c) of the Act, the 2015\-16 total amount for the housing services national specific purpose payment indexed in accordance with subsection 14(4) of the Act is $1,324,051,803.62.
12. In accordance with subsection 14(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 3: National specific purpose payment for housing services, 2015-16
National specific purpose payment for skills and workforce development
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum of:
85 per cent Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent); and
15 per cent Wage Cost Index 6 (comprising safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent).
8. For the purposes of paragraph 12(2)(c) of the Act, the 2015-16 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the Act is $1,455,484,015.83.
9. In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on skills and workforce development.
Table 2: National specific purpose payme
Table 2: National specific purpose payment for skills and workforce development, 2015-16
Table 2: National specific purpose payment for skills and workforce development, 2015-16
National specific purpose payment for ho
National specific purpose payment for housing services
National specific purpose payment for housing services
10. In accordance with subsection 14(4) of the Act, the indexation applied to the housing services national specific purpose payment from the previous financial year will be Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent).
11. For the purposes of paragraph 14(2)(c) of the Act, the 2015\-16 total amount for the housing services national specific purpose payment indexed in accordance with subsection 14(4) of the Act is $1,324,051,803.62.
12. In accordance with subsection 14(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 3: National specific purpose payme
Table 3: National specific purpose payment for housing services, 2015-16
Table 3: National specific purpose payment for housing services, 2015-16
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
It fixes the indexation method for the NSPP for housing services, and states the 2015-16 total amount for that NSPP (clauses 10-12). The indexation applied to housing services is Wage Cost Index 1 (safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent) (cl 10). The 2015-16 total amount is $1,324,051,803.62 (cl 11). Clause 12 directs payments per Table 3 to States for expenditure on housing services in 2015-16.
Each of the three payments is expressly tied to a purpose: expenditure on disability services, skills and workforce development, and housing services (cls 6, 9, 12). The Determination implements indexation formulas and sets the Commonwealth’s total payment envelopes for the 2015-16 year. The allocation among States is governed by Tables 1-3, which the Determination incorporates by reference (the Determination states “the amounts specified in Table X are to be paid … to the States specified in that table”).
The instrument relies on and cites specific provisions of the Act (for example cl 4 references subsection 13(4) of the Act; cl 7 references subsection 12(4); cl 10 references subsection 14(4); cl 5 references paragraph 13(2)(c)), so its mechanical effect is to operationalise the Act’s machinery for setting indexation and payment amounts for specified NSPPs in that financial year.
Main concepts
The Determination operates with a narrow set of formal concepts and mechanical devices drawn from the Act. The principal concepts in the text are:
Determination under Part 3 of the Act: the instrument identifies its source of authority in Part 3 of the Federal Financial Relations Act 2009 (introductory paragraph). That locates the instrument as an exercise of the Treasurer’s rule‑making/financial determination powers under federal financial relations law.
Commencement and definitions (cls 2-3): the text makes clear the instrument commences on the day made and defines shorthand used in the Determination. The only explicit definitions included are: Act = Federal Financial Relations Act 2009; State = includes the Australian Capital Territory and the Northern Territory (cl 3). Those definitions anchor interpretation of the Determination’s payment and recipient language.
Indexation formulas: the Determination specifies, for each of three NSPPs, how the previous year’s payment is to be indexed to produce the new year’s total amount:
Disability services: “a rolling five year average of nominal Gross Domestic Product year‑on‑year growth” (cl 4). That is a multi‑year average of nominal GDP growth as the indexation metric.
Skills and workforce development: a blended Wage Cost Index comprised of 85 per cent Wage Cost Index 1 and 15 per cent Wage Cost Index 6, where each Wage Cost Index is itself a composite of safety net wage adjustment and all groups CPI with specified weights (cl 7).
Housing services: Wage Cost Index 1, defined as safety net wage adjustment (75 per cent) and all groups CPI (25 per cent) (cl 10).
Total Commonwealth payment envelopes for 2015-16: each NSPP has an explicit total amount stated in the Determination (cls 5, 8, 11): disability services $1,438,826,480.90; skills and workforce development $1,455,484,015.83; housing services $1,324,051,803.62. Those totals are stated “for the purposes of” specified paragraphs of the Act (paras 13(2)(c), 12(2)(c), 14(2)(c) respectively), indicating statutory context.
Allocation tables: the Determination contains Tables 1-3 that specify the split of each NSPP’s total among the States (cls 6, 9, 12). The Determination instructs that the amounts in those tables are to be paid to the States in the 2015-16 year for the stated purposes. The tables are incorporated into the instrument.
Purpose limitation: each of the three payments is tied to a stated purpose , expenditure on disability services (cl 6), skills and workforce development (cl 9), and housing services (cl 12). The Determination does not add further conditions in the text reproduced; it simply declares the purpose for which the Commonwealth money is to be paid to States.
Administrative signatory: the instrument records its maker (Treasurer Scott John Morrison) and the date and attestation (introductory material and signature block).
These concepts are the mechanisms the Determination uses to alter the quantum of funds payable by the Commonwealth for those NSPPs in 2015-16 and to fix the indexation methodologies to be applied from the prior year. The Determination does not itself contain operational rules governing acquittal, reporting, or State use beyond stating the purpose, nor does it vary the Act’s definitions or the Act’s other procedural or compliance provisions; any such obligations would remain governed by the Act (the instrument’s authority and references make that interaction explicit).
Who it affects
The Determination creates effects for several identifiable groups by specifying Commonwealth payment amounts, indexation methods, and the recipients of payments.
Commonwealth executive: the instrument directs the Commonwealth’s financial machinery. The Treasurer, exercising Part 3 powers of the Act, determines indexation and total amounts for the three NSPPs (introductory paragraph; cls 4-12). The Australian Government’s budget and cash‑management processes are the ultimate payors; the Determination sets the envelopes the Commonwealth is to pay.
States (including the Australian Capital Territory and the Northern Territory): the Determination explicitly directs payments “to the States specified in [Tables 1-3]” for the stated purposes (cls 6, 9, 12). The definition clause clarifies that “State includes the Australian Capital Territory and the Northern Territory” (cl 3). Therefore each State named in the incorporated tables will receive its specified share of the NSPP totals for 2015-16.
State agencies and service providers: while the Determination does not directly regulate State procurement or payments to service providers, it allocates Commonwealth funding to States for three programmatic purposes (disability services, skills and workforce development, housing services). States commonly use such funds to finance public service delivery and contracts with non‑government providers; consequently, public and private entities that provide disability supports, training, workforce development services, and housing services at the State level will be indirectly affected by the amounts States receive and choose to allocate.
End‑users/clients of State services: recipients of disability services, participants in skills and workforce development programs, and occupants of public housing are the intended beneficiaries in purpose terms. The Determination determines the Commonwealth funding available to support State expenditure on those services in 2015-16, which can influence service availability and funding levels.
Budget analysts, auditors, and Parliament: the Determination fixes figures that feed into budget estimates and financial reporting for the Commonwealth and the States. The stated totals for each NSPP (cls 5, 8, 11) are inputs for fiscal accounting and for parliamentary scrutiny.
Entities tracking indexation and wage/cost pressure: because the Determination specifies indexation methods tied to macroeconomic indicators (nominal GDP and composite Wage Cost Index constructions), agencies and analysts that monitor wage movements, CPI and GDP will need to calculate the specific indexation factors when applying the Determination. The Determination prescribes the indices and weights (cls 4, 7, 10), thereby imposing a calculation task on responsible agencies.
Who does not change under this Determination: the Determination does not itself create new regulatory duties on private firms beyond what may follow from State decisions about using the funds. It does not amend the Act, nor does it, in the text reproduced, add bespoke reporting, compliance, or conditionality requirements beyond the statement of purpose for each payment. Any reporting or compliance obligations would continue to be governed by the Act (cl 3 confirms the Act is the governing statute).
Key duties and rights
The Determination’s legal mechanics are narrow: it sets indexation rules, total payment amounts, and directs that the amounts in the incorporated tables be paid to the States for the specified purposes. Key duties and rights created or invoked by the Determination are therefore primarily financial and administrative.
Treasurer’s duty/power to determine: by making this instrument under Part 3 of the Act, the Treasurer exercises a statutory power to determine specific parameters for NSPPs. The Determination itself records the exercise of that power (introductory paragraph). The Determination imposes no novel duties on private parties; it is an exercise of executive authority to fix public payment parameters.
Commonwealth payment obligation: by stating the 2015-16 total amounts and directing payment per the tables, the Determination creates an operational instruction for the Commonwealth to pay the amounts specified (cls 5-6, 8-9, 11-12). Practically, the Commonwealth’s budget and payment systems have an obligation to disburse those funds to the States in accordance with the Determination and the Act.
Purpose limitation on payments: clauses 6, 9 and 12 each link the specified payments to a purpose: “for the purpose of expenditure on disability services,” “for the purpose of expenditure on skills and workforce development,” and “for the purpose of expenditure on housing services,” respectively. That language identifies the intended use of the funds and, depending on the Act’s broader framework, is likely to interact with any acquittal, reporting, or conditionality rules the Act imposes. The Determination itself does not elaborate further conditions in the text reproduced.
Indexation duty for applying agencies: the Determination sets the indexation methods the Executive must apply to compute current year totals from prior year bases (cls 4, 7, 10). Applying those formulas is a duty of the Commonwealth agency responsible for calculating the amounts (Treasury or the Department administering the Act). The formulas require accessing external economic measures (nominal GDP, safety net wage adjustment, all groups CPI) and applying the specified weights and averaging methods.
Rights of States to receive the amounts in tables: the Determination identifies the States in Tables 1-3 as recipients of specified sums for 2015-16 (cls 6, 9, 12). Those tables, once incorporated into the instrument, function as the legal record of entitlements for the year: each State named obtains a Commonwealth payment in the amount shown in the table for that purpose for 2015-16.
No new individual legal claims or private rights in the text: the Determination sets public financial parameters and does not create private contractual rights or private enforcement mechanisms on its face. Individuals or private providers do not acquire direct enforcement rights against the Commonwealth under the Determination text reproduced; enforcement would be a matter of public finance law and any relevant Act provisions.
Interaction with the Act: the Determination repeatedly cites specific subsections and paragraphs of the Act (for example cl 4 cites subsection 13(4); cl 5 cites paragraph 13(2)(c); cl 7 cites subsection 12(4); cl 10 cites subsection 14(4)). Those citations indicate that any duties and rights flowing from this Determination must be interpreted and applied in the context of the Act’s framework. For example, the Determination’s indexation declarations operate “in accordance with” or “for the purposes of” specific Act provisions; hence agencies must apply both the Determination and the Act together.
In short, the Determination creates and fixes payment entitlements for States and imposes computational obligations on Commonwealth agencies to apply the specified indexation rules. It states purposes for payments but does not, in the reproduced text, add new procedural compliance requirements beyond those already in the Act.
Penalties and enforcement
The Determination does not itself prescribe penalties, sanctions, or enforcement mechanisms. It is a financial instrument that sets indexation formulas, total payment amounts, and directs payment per attached tables. The text reproduced contains no penal provisions, compliance enforcement clauses, or penalty schedules.
What the Determination does do, and how enforcement is likely to operate as a matter of legal practice, is as follows:
No express penalties in the Determination: clauses 4-12 establish indexation and payment amounts and link payments to purposes. The Determination does not, on its face, specify consequences for misuse of funds, late payment, or inaccurate indexation calculations. The instrument therefore does not itself create enforceable penalty provisions.
Enforcement through the Act: the Determination is made “under Part 3 of the Federal Financial Relations Act 2009” (introductory paragraph) and repeatedly references subsections and paragraphs of the Act (for example subsections 12(4), 13(4), 14(4); paragraphs 12(2)(c), 13(2)(c), 14(2)(c)). Any enforcement, acquittal, or penalty regime that might apply to misuse or misapplication of NSPP funds would be established by the Act and by associated regulations or intergovernmental agreements, not by this Determination alone. The Determination’s text does not reproduce those enforcement provisions; users must consult the Act to see the applicable enforcement framework.
Administrative enforcement and audit: in practice, compliance with purpose limitations and the proper application of funds will be subject to standard public‑sector audit, acquittal, and reporting processes established under the Act or intergovernmental agreements. The Determination itself does not specify those processes or the consequences of non‑compliance.
Operational risk if indexation is misapplied: because the Determination prescribes indexation formulas (for example a rolling five‑year average of nominal GDP growth for disability services, cl 4, and composite Wage Cost Index formulas for skills and housing, cls 7 and 10), errors in calculation could produce incorrect payment amounts. The Determination does not set penalties for calculation errors; however, administrative corrective mechanisms (budget adjustments, reconciliations) would be the likely remedy.
Remedies by States or the Commonwealth: the Determination creates payment entitlements as captured in Tables 1-3. If a dispute arises about whether the Commonwealth has paid the amounts due under the Determination, the avenues for resolution and any enforcement would be procedural and legal remedies under public finance law and the Act. The Determination text does not specify a dispute resolution mechanism.
Because this instrument is a piece of executive financial administration rather than a regulatory code with designated sanctions, its enforcement and penalty architecture is governed by the Act and the Commonwealth’s broader financial management and accountability framework. The Determination itself is silent on penalties and enforcement.
How it interacts with other laws
The Determination is expressly made under and therefore interacts with the Federal Financial Relations Act 2009. The Determination repeatedly cites provisions of the Act as the statutory basis for its indexation and payment settings (for example cl 4 cites subsection 13(4) of the Act; cl 7 cites subsection 12(4); cl 10 cites subsection 14(4); cl 5 cites paragraph 13(2)(c); cl 8 cites paragraph 12(2)(c); cl 11 cites paragraph 14(2)(c)). This means:
The Act is the primary legal framework: the Determination implements the Act’s Part 3 power to determine NSPP parameters. Any interpretation of the Determination must be read in light of the Act. The Determination’s indexation and payment instructions are framed “in accordance with” or “for the purposes of” specific Act provisions, so the Act’s definitions, procedural requirements, conditions, reporting and acquittal rules (if any) remain operative. The Determination does not repeal, amend, or supplant the Act; it operates within it.
Definitions: the Determination reproduces limited definitions (cl 3). For other terms and for the broader regime (for example precise definitions of the NSPPs, reporting, conditionality, or recoupment powers), one must consult the Act. The Determination’s definitions are supplemental and limited in scope.
Interaction with State law and budgets: the Determination directs Commonwealth payments to States for specified purposes. Once funds transfer to States, State laws, budgets and administrative arrangements govern how the funds are spent. The Determination does not change State law but changes the Commonwealth’s funding envelopes. States retain responsibility for expenditure in accordance with their own frameworks, subject to any Act‑level conditions.
Interaction with intergovernmental agreements: the Commonwealth and the States regularly use intergovernmental agreements (for example, National Agreements or Heads of Agreement) to govern the use of Commonwealth funds. The Determination does not itself include such agreements, but the payments it authorises will commonly be linked to intergovernmental arrangements in practice. The Determination is silent on specific intergovernmental terms; it only sets indexation and payment amounts.
Administrative law and public finance law: as an executive determination that fixes public payments, the instrument interacts with Commonwealth financial management law, including appropriation and reporting obligations, and with administrative law principles when decisions affect parties. The Determination sets amounts; actual disbursement will be subject to appropriation law and usual Commonwealth financial controls. The Determination itself does not discuss appropriations, so the practical effect will be implemented through the Commonwealth’s budget and payments system.
No modification of private law contracts in the text: the Determination does not alter private contractual rights or obligations directly. However, by increasing or fixing the funds available to States for particular services, it can indirectly affect State contracting choices under State procurement regimes.
In short, the Determination is an instrument that sits inside the Act’s architecture; its practical and legal consequences require reading both this Determination and the Federal Financial Relations Act 2009 together. For specific compliance obligations, acquittal and recoupment rules, and dispute mechanisms, the Act and any associated agreements must be consulted because the Determination is silent on those matters beyond the identification of purposes and payment amounts.
Amendment history
The Determination text reproduced in the source does not display any amendment history entries or variant dates other than its making date. The instrument records that it is made by the Treasurer and dated 2 September 2016 (introductory material and signature block). The Determination’s title indicates the financial year 2015-16.
Key points from the document about history and repetition:
Date and maker: the Determination is dated 2 September 2016 and signed by Scott John Morrison as Treasurer (introductory and signature material). That is the operative date of the instrument’s making and commencement (cl 2 provides commencement is on the day the Determination is made).
No amendment schedule in the text reproduced: the instrument as provided does not include a schedule of amendments, nor are there notes indicating prior instruments replaced or varied. The Determination’s text is self‑contained: it sets indexation and payment amounts for 2015-16.
Repetition and duplication in the source file: the source file contains multiple repeated blocks of the Determination text (the name, the preliminary clauses, the Part 2 provisions and the three NSPP sections appear several times in the provided copy). The repetitions appear to be duplicate reproductions of the same instrument rather than formal amendments. The Determination does not mark any of those repeated sections as amendments or subsequent variations.
Embedded tables: Tables 1-3 are incorporated into the Determination to show State allocations, and they are presented as images in the source. The Determination states that the amounts in those tables are to be paid to the named States in 2015-16 (cls 6, 9, 12). The text provides the national totals for each NSPP (cls 5, 8, 11), but the side‑by‑side breakdowns among States are contained in the tables.
No textual amendment clauses: there are no clauses labeled as amendments or saving provisions in the text reproduced. The Determination’s scope is the 2015-16 financial year; future years’ indexation appears to be set by the formulas specified but any later Determination or legislative change would be separate.
For a complete formal amendment history (if any past or subsequent instruments alter these settings), one must consult the Commonwealth Gazette, the Federal Financial Relations Act’s statutory instrument register, or official legislative instrument registers. The Determination as provided contains no recorded modifications or historical notes beyond its making date and the duplicated content in the provided file.
Litigation history
The Determination text reproduced contains no references to litigation, court decisions, or tribunal proceedings. It is an administrative financial instrument that sets indexation and payment amounts and does not include any notes about legal challenges or judicial review.
Practical implications for litigation risk and history:
No recorded cases in the instrument: the Determination does not name any judicial decisions or indicate that its content has been litigated. The instrument is not a statutory provision subject to declaratory case law in the text provided.
Potential avenues for challenge: as a Commonwealth administrative determination affecting payment entitlements, potential legal avenues (in general, not specific to this Determination) could include judicial review of the exercise of executive power under the Administrative Decisions (Judicial Review) Act or constitutional or statutory claims about the validity of payments. The Determination itself does not contain material about remedies or litigation.
Disputes about calculation or payment: if a State were to assert the Commonwealth failed to pay the amounts specified in the Determination, the likely practical resolution would be administrative (reconciliation, negotiation) and, if unresolved, could proceed to legal action under the applicable public law and public finance frameworks. The Determination does not preclude such action but does not record any precedent or past litigation.
No precedential content: the instrument does not refer to prior litigation shaping its terms, nor does it set out a legal argument that would be the subject of judicial interpretation.
If litigation history is material to a matter of interest, users must search court records and law reports for any proceedings that post‑date the Determination or challenge the operation of NSPP determinations generally. The Determination as provided shows no litigation history.
Gotchas
The Determination is straightforward in form, but there are several practical and legal points that can cause misunderstandings or operational errors if not observed. These “gotchas” are drawn from the Determination’s text and from the interaction points it creates:
Indexation formulas require external data and precise calculation rules: the Determination prescribes indexation methods that rely on external economic statistics and composite index constructs (cl 4: rolling five‑year average of nominal GDP year‑on‑year growth; cl 7: composite Wage Cost Index with specified weights; cl 10: Wage Cost Index 1). The Determination does not specify the precise data source, timing, or rounding rules for those calculations. That leaves room for divergent interpretations of, for example, which statistical series to use, how to treat revisions to GDP or CPI series, and how to compute a rolling five‑year average (calendar years, financial years, exact formula). Agencies must confirm the precise statistical series and methodology to avoid calculation disputes.
Tables are incorporated but presented as images in the provided copy: the Determination relies on Tables 1-3 for State allocations (cls 6, 9, 12). In the source provided, those tables appear as embedded images. Practitioners referencing the Determination must ensure they use an authoritative copy (for example the Gazette or the Office of Parliamentary Counsel version) to obtain accurate numerical breakdowns. Relying on the reproduced images without cross‑reference could lead to transcription errors.
The Determination states totals “for the purposes of” Act paragraphs: clauses 5, 8 and 11 frame the stated totals as being provided “for the purposes of” specific paragraphs of the Act (paragraphs 13(2)(c), 12(2)(c), 14(2)(c)). Interpreters must therefore read these declared totals against the statutory context of those Act provisions to confirm any additional statutory constraints or reporting expectations that apply to those totals.
Purpose language is succinct and leaves scope to States: clauses 6, 9 and 12 direct that amounts in the tables are to be paid to States for expenditure on specified high‑level purposes. The Determination does not further define permissible categories of expenditure within those purposes. That leaves operational leeway for States but also creates potential ambiguity about what State expenditures qualify. Practitioners should check the Act or any intergovernmental agreements for detailed eligibility or acquittal requirements.
Commencement is immediate: clause 2 provides the Determination commences on the day it is made. That creates a tight timeline for agencies or accounting units to implement the new totals and indexation for the 2015-16 year. Practitioners must ensure accounting systems and intergovernmental payment schedules reflect the instrument’s immediate effect.
Repetitions in the source may confuse version control: the supplied document contains repeated blocks of the same text. For drafting and legal work, ensure you refer to the authoritative instrument and not a duplicated or draft copy that may contain transcription issues.
No penalties or enforcement detail in the Determination: the instrument does not set out enforcement, acquittal, or penalty processes. Practitioners should not assume those are absent; instead they should consult the Act and related instruments for the compliance framework. Failure to do so can lead to mistaken advice about remedies available for misuse or misreporting of funds.
Composite Wage Cost Indices may be unfamiliar: the Determination relies on Wage Cost Index composites with non‑standard weightings (for example cl 7’s 85/15 split and the internal weightings between safety net wage adjustments and all groups CPI). Agencies must be careful to use the exact weightings specified and to document sources for the underlying series (safety net wage adjustment and all groups CPI).
Limited definition set: only two definitions are included in the Determination text: Act and State (cl 3). Other terms are used without definition in the Determination (for example the specific meanings of “Wage Cost Index 1” and “Wage Cost Index 6” are only partially described as composite weightings). If any doubt exists about precise index definitions, consult the Act or relevant statistical or policy guidance that sets out index definitions.
These are concrete operational points to verify when implementing or advising on the Determination. The core legal text is short, but practical execution depends on data sources, precise calculation steps, and the interconnection with the Act and any intergovernmental arrangements.
How to comply
Compliance under this Determination requires tracking three parallel tasks: (1) correctly calculating indexation factors and totals pursuant to the specified formulas; (2) using the authoritative Tables 1-3 to allocate payments to the States; and (3) following the Act’s broader reporting, acquittal, and financial management requirements. The Determination itself provides the indexation rules and totals; compliance steps are as follows.
Confirm authoritative instrument and tables
Obtain the definitive copy of the Determination (for example from the Federal Register of Legislation or the Commonwealth Gazette) to ensure the embedded Tables 1-3 are read from the authoritative source rather than images or a draft. Clauses 6, 9 and 12 make payment instructions contingent on the amounts in those tables. Confirm the precise numerical allocations to States from the official version before making or recording payments.
Apply the indexation formulas exactly as stated
Disability services (cl 4): compute the rolling five‑year average of nominal GDP year‑on‑year growth. Document the data source (Australian Bureau of Statistics series used), the period used for the rolling five‑year average (for example which five consecutive years), treatment of revisions, and rounding conventions. Because the Determination does not define these procedural elements, record your methodology and reference the ABS series and dates used.
Skills and workforce development (cl 7): apply the composite Wage Cost Index formula: 85 per cent Wage Cost Index 1 plus 15 per cent Wage Cost Index 6. For Wage Cost Index 1 and 6, apply the internal weightings the Determination prescribes (WCI1 = safety net wage adjustment 75% + all groups CPI 25%; WCI6 = safety net wage adjustment 40% + all groups CPI 60%). Again, record the data sources and dates.
Housing services (cl 10): apply Wage Cost Index 1 as defined in the Determination (safety net wage adjustment 75% + all groups CPI 25%).
Reconcile with prior year bases and the Act
The Determination’s totals are expressed as the 2015-16 total amounts “indexed in accordance with” the Act’s relevant subsection (cls 5, 8, 11). Reconcile the application of the indexation with the previous year base amounts and any statutory calculation methods in the Act to confirm you have applied the indexation correctly when arriving at the stated totals.
Implement payments to States per Tables
Use the confirmed Tables 1-3 allocations to schedule and make payments to the States identified, ensuring amounts match the table entries for the 2015-16 year (cls 6, 9, 12). The Determination instructs the Commonwealth to pay those amounts to the States for the specified purposes.
Observe purpose limitation and coordinate with State counterparts
Clauses 6, 9 and 12 tie each payment to a stated purpose. Consult the Act and any bilateral or multilateral intergovernmental agreements that may provide detail on eligible expenditure items, reporting, and acquittal. Coordinate with State finance and program agencies to ensure State expenditure aligns with the intended purpose and that reporting expectations under the Act are understood and agreed.
Document methodology and retain audit trail
Because the Determination leaves specifics of index calculation and data sourcing open, document methodologies, data series (including ABS catalogue numbers or Treasury series where used), dates, and rounding methods used to compute indexation. Maintain a clear audit trail that evidences how totals and State allocations were computed and transferred.
Check for Act‑level compliance obligations
The Determination does not set out procedural compliance or penalty mechanisms. Review the Federal Financial Relations Act 2009 for acquittal, reporting, auditing, and recoupment provisions that apply to these NSPPs, and ensure those processes are adhered to. The Determination’s reference to the Act (cl 3 and multiple subsequent citations) indicates that the Act remains the governing statutory regime for compliance.
Monitor for statistical revisions and reconcile
Because indexation is tied to macro series that can be revised (notably GDP), monitor releases and reconcile payments if an ABS revision or subsequent Determination requires adjustment. Document any reconciliations and, if necessary, consult the central Commonwealth finance agency on adjustment protocols.
Control for timing and immediate commencement
The Determination commences the day it is made (cl 2). Ensure payment systems, budget allocations, and State notification are organised to reflect the immediate commencement date.
Retain legal and financial advice where necessary
Where there is ambiguity in index construction, table interpretation, or interaction with other statutory obligations under the Act, seek legal advice or central agency guidance. The Determination’s brevity and reliance on the Act mean that some compliance obligations will depend on reading both instruments together.
Following these steps will ensure accurate calculation of indexation, correct transfer of amounts to States as shown in the tables, and appropriate adherence to the purpose limitations and the overarching statutory framework referenced by the Determination.
State includes the Australian Capital Territory and the Northern Territory.
PArt 2 — National Specific purpose payments
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payment for disability services, 2015-16
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum of:
85 per cent Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent); and
15 per cent Wage Cost Index 6 (comprising safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent).
8. For the purposes of paragraph 12(2)(c) of the Act, the 2015-16 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the Act is $1,455,484,015.83.
9. In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on skills and workforce development.
Table 2: National specific purpose payment for skills and workforce development, 2015-16
National specific purpose payment for housing services
10. In accordance with subsection 14(4) of the Act, the indexation applied to the housing services national specific purpose payment from the previous financial year will be Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent).
11. For the purposes of paragraph 14(2)(c) of the Act, the 2015\-16 total amount for the housing services national specific purpose payment indexed in accordance with subsection 14(4) of the Act is $1,324,051,803.62.
12. In accordance with subsection 14(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 3: National specific purpose payment for housing services, 2015-16
Name of Determination Name of Determination
Name of Determination
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
State includes the Australian Capital Territory and the Northern Territory.
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
State includes the Australian Capital Territory and the Northern Territory.
PArt 2 — National Specific purpose payments
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payment for disability services, 2015-16
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum of:
85 per cent Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent); and
15 per cent Wage Cost Index 6 (comprising safety net wage adjustment weighted by 40 per cent and all groups CPI weighted by 60 per cent).
8. For the purposes of paragraph 12(2)(c) of the Act, the 2015-16 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the Act is $1,455,484,015.83.
9. In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on skills and workforce development.
Table 2: National specific purpose payment for skills and workforce development, 2015-16
National specific purpose payment for housing services
10. In accordance with subsection 14(4) of the Act, the indexation applied to the housing services national specific purpose payment from the previous financial year will be Wage Cost Index 1 (comprising safety net wage adjustment weighted by 75 per cent and all groups CPI weighted by 25 per cent).
11. For the purposes of paragraph 14(2)(c) of the Act, the 2015\-16 total amount for the housing services national specific purpose payment indexed in accordance with subsection 14(4) of the Act is $1,324,051,803.62.
12. In accordance with subsection 14(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 3: National specific purpose payment for housing services, 2015-16
National specific purpose payment for di National specific purpose payment for disability services
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payme Table 1: National specific purpose payment for disability services, 2015-16
This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2015\-16.
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.
State includes the Australian Capital Territory and the Northern Territory.
PArt 2 — National Specific purpose payments
National specific purpose payment for disability services
4. In accordance with subsection 13(4) of the Act, the indexation applied to the disability services national specific purpose payment will be a rolling five year average of nominal Gross Domestic Product year-on-year growth.
5. For the purposes of paragraph 13(2)(c) of the Act, the 2015-16 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,438,826,480.90.
6. In accordance with subsection 13(5) of the Act, the amounts specified in Table 1 are to be paid, for the 2015\-16 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 1: National specific purpose payment for disability services, 2015-16
National specific purpose payment for skills and workforce development
7. In accordance with subsection 12(4) of the Act, the indexation applied to the skills and workforce development national specific purpose payment from the previous financial year is the sum
This is an opening excerpt, not the complete document.