An intergovernmental agreement (IGA) is an agreement made between the Commonwealth and state and territory governments. While IGAs are not legally binding, they express the commitment of governments to work together on certain objectives or goals. Most IGAs commence as soon as they are signed by the Commonwealth and one state or territory.
When an agreement involves funding from the Commonwealth to the states and territories, this is covered under the IGA on Federal Financial Relations. This IGA recognises that the states and territories 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 sectoral Federation Funding Agreements (Health; Education and Skills; Infrastructure; Environment; and Affordable Housing, Community Services and Other), or through one of the National Agreements.
The Council on Federal Financial Relations (CFFR) is the gatekeeper of the Federation Funding Agreements framework and makes sure that agreements are negotiated and administered efficiently.
For current and past funding agreements, see the Federal Financial Relations website.