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Commonwealth Funding Agreements

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In line with the Intergovernmental Agreement on Federal Financial Relations, the Australian Government provides funding support to the states in two forms.

The first form comprises general revenue payments, predominantly GST revenue, which are freely available for use by Queensland for any purpose – the Australian Government does not impose restrictions as to how this funding can be spent.

The second form comprises payments for specific purposes, which include:

  • National Specific Purpose Payments (and funding related to the health and education reforms) to be spent in the key service delivery sectors
  • National Partnership Agreement and Project Agreement payments made to states to support the delivery of specified outputs or projects, to facilitate reforms or to reward those jurisdictions that deliver on nationally significant reforms.

With recent national reforms in hospital and school funding, there are now two new forms of Australian Government funding: National Health Reform funding and Students First funding.

When negotiating agreements with the Australian Government, Queensland Government agencies must ensure they comply with the Queensland Government principles for intergovernmental activities.

The Council for Federal Financial Relations website provides a number of resources to assist with the drafting and development of new intergovernmental agreements

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Last reviewed 14 February 2014