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Federal Financial Relations (National Specific Purpose Payments) Determination 2012-13

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Federal Financial Relations (NATIONAL SPECIFIC PURPOSE PAYMENTS) DETERMINATION 2012-13

I, JOSEPH BENEDICT HOCKEY, Treasurer, make this Determination under Part 3 of the Federal Financial Relations Act 2009.

 

                                                                 
JOSEPH BENEDICT HOCKEY
Dated:  13 November 2013

 

Part 1 — preliminary
Name of Determination
1.             This determination is the Federal Financial Relations (National Specific Purpose Payments) Determination 2012-13.
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 schools
4.                  In accordance with subsection 11(4) of the Act, the indexation factor applied to the government schools national specific purpose payment from the previous financial year is the product of:
-        growth in average government schools recurrent cost; and
-        growth in full-time equivalent enrolments in government schools.
5.             For the purposes of paragraph 11(2)(c), the 2012-13 total amount for the government schools national specific purpose payment indexed in accordance with 11(4) of the Act is $3,944,991,345.71.
6.             In accordance with subsection 11(5) of the Act, the amounts specified in Table 1 are to be paid for the 2012-13 financial year to the States specified in that table for the purpose of expenditure on schools.
Table 1: National specific purpose payment for schools, 2012-13
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 2012-13 total amount for the skills and workforce development national specific purpose indexed in accordance with 12(4) of the act is $1,387,532,069.53.
9.             In accordance with subsection 12(5) of the Act, the amounts specified in Table 2 are to be paid, for the 2012-13 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, 2012-13
 
National specific purpose payment for disability services
10.         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.  In recognition that the disability services specific purpose payment incorporates funding amounts for the former Disabilities Assistance Package (DAP) which already included a growth rate, the DAP component is excluded from this indexation.  
11.         For the purposes of paragraph 13(2)(c) of the Act, the 2012-13 total amount for the disability services national specific purpose payment adjusted in accordance with 13(4) of the Act is $1,276,101,043.62.
12.         In accordance with subsection 13(5) of the Act, the amounts specified in Table 3 are to be paid, for the 2012-13 financial year, to the States specified in that table for the purpose of expenditure on disability services.
Table 3: National specific purpose payment for disability services, 2012-13(a)
(a) Includes an adjustment to achieve budget neutrality.
 
National specific purpose payment for housing services
13.         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).
14.         For the purposes of paragraph 14(2)(c) of the act, the 2012-13 total amount for the housing services national specific purpose payment indexed in accordance with 14(4) is $1,263,726,818.25.
15.         In accordance with subsection 14(5) of the Act, the amounts specified in Table 4 are to be paid, for the 2012-13 financial year, to the States specified in that table for the purpose of expenditure on housing services.
Table 4: National specific purpose payment for housing services, 2012-13