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Budget Paper No.2 Fiscal and Economic Outlook 2008-2009



Budget Paper No.2 Fiscal and Economic Outlook 2008-2009

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Tabled paper 1293


Tabled papers for 10th Assembly 2005 - 2008; Tabled Papers for 10th Assembly 2005 - 2008; Tabled papers; ParliamentNT; Tabled Papers




Tabled By Delia Lawrie


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2008-09 Budget 58 Intergovernmental Financial Issues Therefore the reforms to Commonwealth-State Financial Relations are designed to reduce the administrative and reporting burden on the states and to improve the efficiency of these payments in delivering agreed outcomes. This will be achieved through a reduction in the number of SPPs, without reducing Commonwealth funding. The majority of the current SPPs will be aggregated into the new national SPPs. National SPPs will cover the core government areas of health, affordable housing, early childhood and schools, vocational education and training, and disability services. National SPPs will be ongoing rather than tied to fixed terms, with periodic review to ensure that funding levels are adequate to meet the objectives of the SPPs. Treasurers will negotiate funding levels and appropriate indexation formulae for each SPP. Central to each of the new national SPP agreements will be mutually-agreed Statements of Objectives, Outcomes and Outputs. The agreements will clearly set out: what the Commonwealth and the states expect to achieve from the joint involvement the objectives and expected outcomes (including a new focus on enhancing social inclusion and addressing Indigenous disadvantage); the role of each jurisdiction, their responsibilities and accountabilities; and performance indicators to assess progress in achieving stated objectives. The remaining SPPs will be converted to National Partnership payments or general revenue assistance. National Partnerships will be agreements between the Commonwealth and the state to fund specific projects in areas of joint responsibility, such as transport, environment and water. National Partnership payments will also be the mechanism by which the Commonwealth provides incentive payments to the states to drive nationally significant reforms or to fulfil its election commitments. Incentive payments will be additional to current SPP funding levels. The outcomes from the reform to Commonwealth-state financial relations will be incorporated in a new intergovernmental agreement expected to be finalised at the COAG meeting in December 2008. The new arrangements are expected to commence in 2009 and be fully operational by 2009-10.