Part 2: Payments for Specific Purposes (Continued)
Contingent payments
Contingent payments arise where the Commonwealth has committed to provide compensation when an event occurs or otherwise guarantees the States' financial position. Payments to the States will only arise if the relevant event occurs.
Table 2.10 provides information on contingent payments.
Table 2.10: Contingent payments to the States
Exceptional Circumstances Assistance(a)
- Exceptional Circumstances Assistance is related to the Agriculture, forestry and fishing GFS function.
The Intergovernmental Agreement on Rural Adjustment provides authority to deliver the Exceptional Circumstances (EC) interest rate subsidy payments to eligible farm and small businesses in EC areas which are viable in the long‑term but require short‑term support to overcome some of the financial effects of drought. This agreement is the basis for the administration of the program and outlines the respective roles of the Commonwealth and States, and their responsibilities and obligations.
New spending measures associated with Exceptional Circumstances Assistance are discussed in Budget Paper No. 2: Budget Measures 2011‑12.
Hepatitis C settlement fund(a)
- Hepatitis C contingent payments are related to the Health GFS function.
The Commonwealth is contributing to the States' schemes for out‑of‑court settlement costs for eligible individuals who contracted Hepatitis C through the blood supply service between 1985 and 1991.
Natural disaster recovery and rebuilding(a)
- The cash payment in 2010‑11 for Victoria will be $604.5 million, of which $500.0 million will be recognised as a prepayment. The cash payment in 2010‑11 for Queensland will be $2,880.6 million, of which $2,050.0 million will be recognised as a prepayment.
The Commonwealth is providing funding under the Natural Disaster Relief and Recovery Arrangements, to assist the States with relief and recovery assistance following eligible natural disasters. This includes advance payments of $2,050.0 million in 2010‑11 and an expected $500.0 million in 2011‑12 to the Queensland Government in response to the November 2010 to February 2011 floods and Tropical Cyclone Yasi, and an advance payment of $500.0 million to the Victorian Government for the floods over the summer period.
New spending measures associated with natural disaster recovery and rebuilding are discussed in Budget Paper No. 2: Budget Measures 2011‑12.
A discussion of Natural disaster relief arrangements is provided in Part 1.
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