The submission states the Business Council of Australia has consistently supported efforts to keep the Council of Australian Governments (COAG) agenda and associated funding agreements tightly focused on efforts to lift the productive capacity of the economy, while encouraging flexibility and accountability for delivering reforms.

COAG undertook valuable reforms in 2008 to rationalise the number of national funding agreements and give states greater flexibility in key policy areas along with higher levels of accountability. Unfortunately, COAG has not stayed true to the intent of these reforms and there has been a proliferation of national partnership agreements, which in many cases is reintroducing Commonwealth direction over funding.

Additional governance and process layers associated with these agreements are also placing administrative burden on governments. The submission says for this reason, the BCA does not want to see the continuing proliferation of new national partnership agreements.

Submission to the Joint Committee of Public Accounts and Audit Inquiry into National Funding Agreements