What it does
The Natural Resources Management (Financial Assistance) Act 1992 establishes a statutory mechanism for the Commonwealth to disburse funds for natural resources management (NRM) activities through formal agreements. At its core, the Act authorises two streams of funding: agreements with States under s.5 and agreements with other persons (including incorporated and unincorporated bodies) under s.6. Both types of agreement must be in writing (ss.5(2) and 6(3)) and are required to address mandatory matters listed in s.7: the object of the project(s), conditions of payment, monitoring and evaluation, review of the agreement, and a mechanism for amendment following review.
The primary object stated in s.3(2) is to facilitate integrated approaches to NRM that achieve efficient, sustainable and equitable management of natural resources and are consistent with the principles of ecologically sustainable development. Secondary objects in s.3(3) emphasise community-industry-government partnerships, institutional arrangements for sustainable use, enhancement of long-term productivity, and resolution of access conflicts.
Financial assistance to States may take the form of grants or other payments for projects jointly approved by the Commonwealth Minister and the relevant State Minister, or for projects expressly listed in the agreement (s.5(1)). Payments are made from money appropriated by Parliament (s.5(6)), and the Minister may provide advances (s.5(5)). Agreements with non-State persons are funded from the Natural Resources Management Account continued by s.11 (s.6(5)).
The Act imposes a comprehensive compliance overlay. Payments are always subject to the statutory conditions in ss.8–10 even if not written into the agreement. These include repayment obligations where an authorised person is satisfied that a condition has not been met or a project has not been carried out as agreed (s.8(3)), recovery of overpayments (s.8(4)), and deduction of repayable amounts from future payments (s.8(5)). Audit and reporting conditions in s.9 are particularly prescriptive: a statement of expenditure in an approved form plus a certificate from the Auditor-General (for State agreements) or a qualified accountant (for other agreements) must be furnished before any payment is released. Payees must permit inspection of documents and supply activity reports or final project reports on request.