Federal Financial Relations

The Commonwealth Government provides funding to state and territory governments through the Federal Financial Relations (FFR) system. It includes Commonwealth-state funding agreements for government services that are jointly funded and GST revenue-sharing arrangements.

FFR underpins Australia’s federal system and accounts for around 25 per cent of total Commonwealth Government expenditure and about 40 per cent of state and territory government expenditure.

It supports the state and territory governments in the delivery of public health, education, infrastructure and community services.