An intergovernmental agreement (IGA) is any agreement made between the Commonwealth and state and territory governments (the states). While IGAs are not legally binding, they express the commitment of governments to work together on certain objectives or goals. For most agreements, the IGA is in effect as soon as it is signed by the Commonwealth and one state or territory.
There are many different agreements that fall under the category of an IGA.
When an agreement involves funding from the Commonwealth to the states for a project, this is covered under the IGA on Federal Financial Relations. This IGA significantly reformed the Commonwealth’s financial relations with the states. It recognised that the states have primary responsibility for many areas of service delivery but that coordinated action is necessary to respond to Australia’s economic and social challenges. Under the IGA on Federal Financial Relations, payments to the states are outlined through schedules to one of five overarching Federation Funding Agreements (divided according to sector), or through one of four National Agreements.
For current and past funding agreements, see the Federal Financial Relations website.