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 through variations to their current funding agreements.
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

For organisations that receive funding through Commonwealth-State Agreements, the Australian Government is continuing to work collaboratively with all state and territory governments to ensure a smooth implementation of the equal remuneration order. The Commonwealth hopes to reach agreement with state and territory governments soon, so funds can quickly flow to the sector.

Commonwealth, state and territory treasury officials have been working together to reach agreement. Based on these discussions final offers have been issued to state and territory governments. These final offers are based on the information provided by state and territory government and independent data checking conducted by the Commonwealth.

The Australian Government is providing supplementation for the following programs:

  • National Perinatal Depression Plan
  • National Partnership on Transitioning Responsibility for Aged Care and Disability Services – Specialist Disability Services
  • National Partnership on Transitioning Responsibility for Aged Care and Disability Services – Basic Community Care and Maintenance and Support Services (Victoria and Western Australia only)
  •  National Partnership Agreement on Homelessness
  • Expansion of the Early Psychosis Prevention and Intervention Centre Model
  • National Disability Specific Purpose Payment
  • National Affordable Housing Specific Purpose Payment
  • National Partnership Agreement Supporting 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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