On 28 August 2020, CFFR established the new Federation Funding Agreements (FFAs) framework. Accordingly, under the Intergovernmental Agreement on Federal Financial Relations, payments to the States are now facilitated through schedules to the FFAs. Schedules sit beneath one of the five overarching sectoral FFAs, which include:

  • Federation Funding Agreement - Affordable Housing, Community Services and Other [PDF 325KB]
  • Federation Funding Agreement - Education and Skills [PDF 346KB]
  • Federation Funding Agreement - Environment [PDF 334KB]
  • Federation Funding Agreement - Health [PDF 354KB]
  • Federation Funding Agreement - Infrastructure [PDF 325KB]

All existing National Partnerships and Project Agreements have been consolidated into the five FFAs.

Principles of the Federation Funding Agreements Rules

Agreement content
Principle 1: Strong economic, social and fiscal outcomes New agreements will promote strong economic and social outcomes and support strong fiscal outcomes (for example, improved employment outcomes, the facilitation of private sector investment where appropriate, and regard for social or health needs or efficiency of service delivery).
Principle 2: Limit the number of low value agreements to ensure value for money CFFR will monitor new agreements to limit the number of low value agreements to minimise the administrative costs associated with the agreement and avoid complexity that does not deliver significant benefit.
Principle 3: Balance government priorities New agreements will recognise and balance the priorities of all levels of government.
Principle 4: Budget autonomy and greater flexibility New agreements will provide states with budget autonomy and flexibility, where practical, to deliver services and infrastructure in a way that they consider will most effectively and efficiently improve outcomes for Australians.
Principle 5: Funding certainty New agreements that fund ongoing services will provide states with funding certainty where possible.
Agreements process
Principle 6: CFFR will retain oversight over agreements Portfolio ministers are required to inform CFFR once they have policy authority for a new agreement.
Principle 7: CFFR will involve portfolio ministers FR will decide whether new agreements are pursued, and the allocation of responsibilities for new agreement negotiation, implementation, monitoring, evaluation and renewal. As required, CFFR should leverage the expertise of Portfolio ministers.
Principle 8: Accountability and transparency Agreements, and exchanges of letters that constitute agreements, will be published on the CFFR website to promote transparency and accountability. Reporting should include what measured outcomes were achieved and evidence on their cost effectiveness.

Note: National Cabinet agreed on 29 May 2020 that the Council on Federal Financial Relations would be responsible for all Commonwealth-State funding agreements, including reviewing the agreements process. Before commencing work on an agreement please contact your usual Treasury contact or for the latest information.