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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-07-16 Daily Xml
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COMMONWEALTH PAYMENTS FRAMEWORK

93 Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (30 September 2008). How will the new Commonwealth Payments Framework, proposed by the Ministerial Council for Commonwealth State Financial Relations and to be implemented on 1 January 2009, impact the state budget and in particular, the delivery of the new framework on education and health funding?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): As agreed by COAG in November 2008, the new framework for Federal financial relations will result in a significant rationalisation of specific purpose payments (SPPs), primarily through combining many into a smaller number of new national SPP agreements, without a reduction in total Commonwealth funding for these activities. This reform will see a reduction from the current 92 SPPs to five new national agreements for delivery of core government services—health, affordable housing, education, skills and workforce development, and disability services.

In addition, new National Partnership (NP) arrangements will provide incentives for reforms, or for funding for specific projects, in areas of joint responsibility.

As reported in the 2008-09 MYBR (p.8), the total increase in revenue to the State from the SPPs is $192 million and from NPs is $438 million. Because the NPs require State and Territory contributions, the overall impact of the new money from the COAG reforms (as reported in the 2008-09 MYBR, Table 1.2, p.6) is $24 million positive over the 2008-09 to 2011-12 forward estimate period.

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