Intergovernmental Agreement (IGA) on Federal Financial Relations

COAG has reaffirmed its commitment to cooperative working arrangements through an historic new IGA that provides an overarching framework for the Commonwealth’s financial relations with the States and Territories (the States). 

More information on this Agreement and National Partnerships is now available.

Attachment D - Trans-Tasman Mutual Recognition Arrangement

Council of Australian Governments' Communiqué
14 June 1996

The Trans-Tasman Mutual Recognition Arrangement (TTMRA) signed on 14 June 1996 by the Prime Minister, Premiers and Chief Ministers extends internationally the existing Australian Mutual Recognition Agreement (MRA), which has reduced regulatory barriers to the movement of goods and service providers between Australian jurisdictions.

Australian Heads of Government signed the MRA in May 1992. The Commonwealth legislation used to implement the MRA, the Mutual Recognition Act 1992, commenced on 1 March 1993 and all States and Territories subsequently passed legislation to join the scheme.

Today's signing ceremony was attended by the New Zealand High Commissioner to Australia, Mr Graham Fortune. The Arrangement will be despatched to New Zealand for signature by the Prime Minister of New Zealand, the Right Honourable James Bolger, MP.

The Arrangement is intended to commence as early as possible in 1997 following the passage of Commonwealth, State, Territory and New Zealand legislation.

The participating parties agreed to allow for changes to be made to the Schedules in the Australian Trans-Tasman Mutual Recognition Arrangement Bill until the time it is introduced into the Commonwealth Parliament; with any such changes to require the agreement of all parties to the Arrangement to ensure that the scope of the Schedules is agreed.

The TTMRA signed today, like the MRA, is based on two key principles:

  • a good that can legally be sold in Australia can be sold in New Zealand and vice versa, without the need to meet certain requirements relating to the sale of the good; and

  • a person registered to practise an occupation in Australia is entitled to practise an equivalent occupation in New Zealand and vice versa, without the need to undergo further testing or examination.

Trans-Tasman trade in virtually all goods is now free of tariffs and this Arrangement will significantly reduce nontariff barriers. Australian and New Zealand citizens have liberal work rights in both countries under the TransTasman Travel Arrangement and this further Arrangement will increase the mobility of persons employed in registered occupations.

In respect of the sale of products, the Arrangement relates to both:

  • standards covering characteristics like quality, size, strength, composition and technical performance (e.g. for a bike helmet); and

  • conformance assessment (i.e. testing to ensure that products conform or comply with standards).

The following areas of regulation, which would otherwise be covered by the mutual recognition principle, will be permanently exempted from the operation of the Arrangement: quarantine and endangered species, firearms, fireworks, gaming machines, indecent or pornographic material, ozone protection, and the registration of agricultural and veterinary chemicals.

Special exemptions from the Arrangement will also apply for several categories of goods that potentially involve significant risks to public health and safety and the environment, and which are subject to significant differences in regulation across the Tasman. These categories include therapeutic goods, hazardous substances, industrial chemicals and dangerous goods, electromagnetic compatibility and radiocommunications standards, road vehicles and gas appliances. In these areas, so-called Cooperation Programmes will be undertaken, requiring regulators to address regulatory differences by:

  • mutual recognition (i.e. that different standards apply);

  • harmonisation (i.e. develop common, although not necessarily identical standards); or

  • permanently exempting certain goods where differences cannot be resolved.

Under these Cooperation Programmes, a prime objective will be to align TransTasman standards with international standards and regulators will need to report on their progress to Heads of Government annually.

Return to COAG Communiqué - 14 June 1996

Last Updated: 1 September, 2008