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Commonwealth of Australia - The Treasury

Annual Report 2014/15

Program 1.9: National partnership payments to the states

Program objective

The Government provides financial support for the states and territories to be spent on improving outcomes in the areas specified in each of the National Partnership agreements. These payments support the delivery of specified outputs or projects, facilitate reforms or reward those jurisdictions that deliver on nationally significant reforms.

This program is linked to the following portfolios: Agriculture; Attorney-General’s; Defence; Education; Environment; Finance; Foreign Affairs and Trade; Health; Industry and Regional Development; Prime Minister and Cabinet; and Social Services. Also refer to Budget Paper No. 3, Federal Financial Relations 2015-16.

Program deliverables

Payments to the states and territories are made on the basis set out in each of the National Partnership agreements and any related agreements.

Key performance indicators

The Treasury will make payments to the states and territories that reflect the requirements, the amounts and timeframes set out in each of the National Partnership agreements and any related agreements. These payments will only be made upon the Treasury’s receipt of authorisations from the relevant agency in respect of performance benchmarks or payment schedules set out in each of the National Partnership agreements.

The Treasury will provide advice to the states and territories on the components of each payment before each payment is made.

Analysis of performance

The Treasury facilitated the Government’s 2014‑15 financial support for the states and territories in improving outcomes in areas specified in National Partnership agreements.

Total Commonwealth expenses for National Partnership payments for 2014‑15 were $13.7 billion ($9.8 billion was recognised as an expense by the Treasury), comprising:

  • payments to support state health services of $1.3 billion;
  • payments to support state education services of $750 million;
  • payments to support state skills and workforce development related services of $395 million;
  • payments to support state community services of $902 million;
  • payments to support affordable housing services of $638 million;
  • payments to support state infrastructure services of $4.9billion;
  • payments to support state environmental services of $531 million;
  • payments to support other state services of $3.7 billion; and
  • contingent payments to the states of $522 million.

Payments were made by the Treasury on advice from portfolio agencies, with amounts certified as being correct for payment by the agency’s Chief Finance Officer or other authorised delegate.

Payments were made in a timely manner in accordance with the payment arrangements specified in the Intergovernmental Agreement on Federal Financial Relations.

Advice was provided to the states and territories before each payment was made.