NSW is a signatory to the Intergovernmental Agreement on Federal Financial Relations (IGAFFR). The IGAFFR provides the overarching framework for financial relations between the Commonwealth and the States and Territories.

Ministers and agencies involved in the negotiation, administration and/or delivery of agreements under the IGAFFR are required to comply with the NSW Protocol for the Intergovernmental Agreement on Federal Financial Relations which sets out NSW processes for:

• negotiating and entering into agreements; and
• progress reporting.

The protocol requires:

• Cabinet consideration of National Agreements and National Specific Purpose Payments before NSW agrees revised or new arrangements.
• Agencies to consult the National Reform Unit DPC prior to agreeing in principle to pursue an agreement and throughout the negotiation of National Partnerships, Project Agreements and Implementation Plans.
• The Treasurer and relevant portfolio Minister(s) to formally endorse National Partnerships before the Premier signs the agreement. Depending on the nature of the National Partnership, Cabinet consideration may be required.
• Agencies to consult with the National Reform Unit DPC when preparing progress reports for the Commonwealth.

NSW is committed to the principles and aspirations of the IGAFFR, including a focus on outcomes with flexibility for States to determine their own priorities and tailor programs to their own contexts. Collaboration between agencies, Treasury and DPC on the negotiation of IGAFFR agreements will ensure good agreement design – by bringing together agencies’ in-depth understanding of policy contexts and service delivery expertise with central agency experience in higher order issues (eg reporting burden and payment design).

Barry O’Farrell MP
Premier

This Memorandum does not supersede any other Memorandum or Circular