Funding Framework

The federal financial framework rationalises the number of payments made to the States, while also increasing the quantum of payments, centralises payment arrangements and provides greater funding certainty and flexibility for the States.

A key feature of the new framework is the centralised payment arrangements which will simplify payments to the States, aid transparency and improve the States' budget processes. State treasuries will be responsible for distributing the funding within their jurisdiction.

In agreeing the new framework for federal financial relations, the Commonwealth committed to the provision of on-going financial support for the States' service delivery efforts through:

  • general revenue assistance, including the on-going provision of GST payments, to be used by the States for any purpose;
  • National Specific Purpose Payments (National SPPs) to be spent in the key service delivery sectors; and
  • National Partnership payments to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.