Legislative Review of the Australia’s Foreign Relations (State and Territory Arrangements) Act 2020
On 1 September 2025, the Minister for Foreign Affairs, Senator the Hon Penny Wong, tabled the report of the independent review of the Australia’s Foreign Relations (State and Territory Arrangements) Act 2020 (Foreign Relations Act) and the Government response in the Australian Parliament.
Recommendations
The independent review made 23 recommendations that focus on administration, governance and transparency of the Foreign Arrangements Scheme and effectiveness in meeting its objectives.
The Australian Government agrees or agrees in principle to all 23 recommendations.
Australia’s Foreign Relations (State and Territory Arrangements) Amendment Bill 2026
On 1 July 2026, the Government introduced the Australia’s Foreign Relations (State and Territory Arrangements) Amendment Bill 2026 into Parliament. The Government is seeking to amend the Foreign Relations Act where required, to implement key recommendations of the legislative review of the Foreign Arrangements Scheme. The Bill also includes additional common-sense amendments that build on the recommendations of the review. The legislative changes will modernise the Scheme, support a more targeted, risk-based approach, simplify notifications, and provide regulatory relief. Further guidance on the changes will be provided later in the year and subject to the Bill’s passage through Parliament.
Background
The Foreign Relations Act commenced on 10 December 2020. Its purpose is to ensure that arrangements between state or territory governments (and their entities) and foreign entities do not adversely affect Australia's foreign relations and are not inconsistent with Australia's foreign policy.
Section 63A of the Foreign Relations Act requires a review of the operation of the Foreign Relations Act as soon as possible after 10 March 2024.
In June 2024, the Government announced the details of the independent review including the appointment of Ms Rosemary Huxtable AO PSM to lead the review, and a call for public submissions.