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Program 1.10: National partnership payments to the states

Program objective

The objectives of Program 1.10 are:

  • 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 also has links to the portfolios of Agriculture, Fisheries and Forestry; Attorney-General’s; Broadband, Communications and the Digital Economy; Climate Change and Energy Efficiency; Defence, and Veteran’s Affairs; Education, Employment and Workplace Relations; Families, Housing, Community Services and Indigenous Affairs; Finance and Deregulation; Health and Ageing; Infrastructure, Transport, Regional Development and Local Government; Prime Minister and Cabinet; Resources, Energy and Tourism; and Sustainability, Environment, Water, Population and Communities.

Program deliverables

The program deliverables are:

  • payments to the State and Territories will be made on the basis set out in each of the National Partnership agreements and any related agreements.

Key performance indicators

The key performance indicators are:

  • 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 Commonwealth Treasury’s receipt of relevant authorisations in respect of the achievement of milestones, performance benchmarks or payment schedules as set out in the relevant National Partnership agreement;
  • the Treasury will provide advice to the States and Territories on the components of each payment prior to each payment being made; and
  • the Treasury will review the acquittal report provided by each State and Territory on their expenditure under each of the National Partnership agreements.

Analysis of performance

The Treasury facilitated the Government’s 2010-11 financial support for the States and Territories in improving outcomes in areas specified in National Partnership agreements.

National Partnership payments for 2010-11 were $23.2 billion comprising:

  • payments to support state health services of $1.9 billion;
  • payments to support state education services of $6.4 billion;
  • payments to support state skills and workforce development related services of $0.4 billion;
  • payments to support state community services of $1.7 billion;
  • payments to support affordable housing services of $2.3 billion;
  • payments to support state infrastructure services of $3.7 billion;
  • payments to support state environmental services of $0.3 billion;
  • payments to support other state services of $0.2 billion; and
  • contingent payments to the States of $6.3 billion.

These payments include amounts for non-government schools and local government.

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

All payments were determined and made in a timely manner in accordance with the payment arrangements specified in the Intergovernmental Agreement.

Advice was provided to the States and Territories prior to each payment being made.