Commonwealth-State financial relations

The Intergovernmental Agreement on Federal Financial Relations provides the overarching framework for the Australian Government’s financial relations with the states. It sets the foundation for collaboration on policy development and service delivery, and for the implementation of economic and social reforms in areas of national importance.

There are a number of intergovernmental forums that oversee Australia’s system of federal-state financial relations. These include:

  • Council on Federal Financial Relations (CFFR), which comprises the Treasurers of the Australian, state and territory governments and which oversees the operation of the Intergovernmental Agreement on Federal Financial Relations.
  • Heads of Treasuries (HoTs) meetings, which are convened every three to four months to discuss federal financial relations issues, and which are attended by Commonwealth, state and territory Under Treasurers or Secretaries. HoTs also provide advice to the CFFR as required.
  • Council of Australian Governments (COAG), the peak intergovernmental forum in Australia, attended by the Prime Minister, Premiers and Chief Ministers, and the President of the Australian Local Government Association.

Queensland Treasury provides support for the Premier, Treasurer and Under Treasurer to participate at these forums.

Treasury also works with other Queensland Government agencies to negotiate national partnership funding agreements with the Australian Government, ensuring that Queensland’s interests are considered and that negotiations comply with the Queensland Government principles for intergovernmental activities. We also advocate on Queensland’s behalf to ensure that Australian Government funding to Queensland is distributed fairly and with consideration to Queensland’s expenditure requirements, demographic growth, size and other characteristics.

For more information on Commonwealth-State financial relations and Queensland’s share of GST revenue, please refer to Chapter 7 of the 2019-20 Budget Strategy and Outlook budget paper.

Last updated: 22 August 2019