Commonwealth-State funding arrangements explained

Organisations may have a combination of up to three streams of Government funding, as shown in the diagram below.



Commonwealth direct funding

Commonwealth-State Agreements

State/Territory direct funding


Commonwealth-direct funding

The Australian Government is providing social and community sector (SACS) supplementation payments to organisations it directly funds to deliver in-scope programs. Current grant agreements with eligible service providers include a SACS supplementation component.

You can view more details about how the Australian Government has calculated SACS supplementation amounts, including some examples, on the following page: How has supplementation been calculated?

Commonwealth-State Agreements

SACS supplementation for in-scope Commonwealth-State agreements is being paid through the SACS National Partnership Agreement (NPA).  All States and Territories have signed the NPA

The Australian Government is providing supplementation for the following programs:

  • National Affordable Housing Specific Purpose Payment

  • National Disability Services National Specific Purpose Payment

  • Transitioning Responsibilities for Aged Care and Disability Services, and Home and Community Care Programme Review Agreement

  • National Partnership Agreement Supporting National Mental Health Reform

State/Territory-direct funding

If your organisation is funded directly by a state or territory government, you should direct any questions regarding eligibility and funding to your Funding Agreement Manager in your relevant state or territory government.

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