What it does
This instrument, the Federal Financial Relations (National Specific Purpose Payments for 2023‑24) Determination 2025, fixes the Commonwealth’s national specific purpose payment (NSPP) for skills and workforce development for the 2023‑24 financial year and divides that amount among the States. It is made under the Federal Financial Relations Act 2009 (the Act), as stated in section 3. The operative substance is in section 5, which (a) indexes the prior year total under paragraph 12(2)(c) of the Act by a specified growth rate for 2023‑24, (b) states the total amount of financial assistance payable under subsection 12(1) of the Act to the States for that year, and (c) sets out the division of that total among the States in a schedule (the table in s 5(3)).
Mechanically, the instrument performs three tasks. First, it applies a growth rate of 18.2427636 per cent to the total amount for the preceding financial year for the purposes of subsection 12(4) of the Act (s 5(1)). Second, it states the total dollar quantum payable under paragraph 12(2)(c) for 2023‑24 as $1,901,093,000.00 (s 5(2)). Third, it allocates that total between New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory in the amounts listed in the table in s 5(3).
The instrument has standard preliminary clauses. It gives its name in s 1, specifies commencement in s 2 (the whole instrument commences the day after registration, per the commencement table in s 2(1)), and defines the shorthand “the Act” to mean the Federal Financial Relations Act 2009 (s 4). Section 2(2) records that information in column 3 of the commencement table is not part of the instrument. The instrument also contains explanatory notes that are not operative law but that the instrument records as relevant to interpretation, including: that despite repeal, section 12 of the Act continues to apply in relation to the 2023‑24 financial year by operation of item 9 of Schedule 6 to the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Act 2024 (Note 1 to s 5); the formula source for the growth factor in clause D27 of Schedule D to the Intergovernmental Agreement (Note 2); the commencement of the National Skills Agreement on 1 January 2024 and the intention that the new funding arrangements replace the NSPP for Skills and Workforce Development (Note 3); a modification to the clause D27 growth factor to account for State entitlements under the National Skills Agreement (Note 4); and a description of Wage Cost Indices used in the growth calculation (Note 5).