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Australia's Intergovernmental Relations

Decent Essays

According to the BCA (2006), intergovernmental relations defines as “the responses that have been developed to facilitate cooperative policy making among divided governments within a federal system.” Intergovernmental relations become a bridge for coordination and cooperation between divided powers. Cooperation in the federal governmental system be held through inter-governmental agreement, cooperative legislative schemes, the establishment of Councils, and other cooperative scheme (Twomey & Withers, 2007).
Intergovernmental relation may also establish amongst the States and Territories without the need of the Commonwealth Government involvement. For example, the States and Territories signed an agreement regarding the compensation and occupational …show more content…

The members of COAG are the Prime Minister, state and territory Premiers and Chief Ministers and the President of the Australian Local Government Association (ALGA). The COAG plays an important role in promoting policy reform which involve Federal and State/Territory governments. The COAG undertake major reforms to Australia’s economy. The Intergovernmental Agreement on Federal Financial Relations (IGAFFR) is the basis for intergovernmental fiscal relationship which was agreed by the COAG. The financial relations framework which was established under the IGAFFR focuses on the achievement of policy objectives that involve all States and Territories (COAG, …show more content…

The VFI then raise the need to transfer the Commonwealth’s tax surplus to be distributed to States and Territories in order to cover the fiscal gap and to maintain the standards of services at the national average levels. The horizontal allocation of government resources within States and Territories in Australia hinges on the distribution of general revenue grants (tax sharing funds), specific purpose payments, states’ and territories’ own tax revenue, and loan money (Spahn & Shah,

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