The Albanese Government has today introduced Australia's Foreign Relations (State and Territory Arrangements) Amendment Bill 2026 to strengthen and streamline the Foreign Arrangements Scheme.
The Foreign Arrangements Scheme, introduced in 2020, provides visibility and oversight of arrangements entered into by state, territory and local governments and public universities with foreign entities, helping ensure these arrangements are consistent with Australia's national interest.
An independent review by Ms Rosemary Huxtable AO PSM in 2025 found the framework is working but should also focus more sharply on areas of genuine risk while improving compliance processes.
The Bill delivers on those findings.
It strengthens the Scheme by embedding the national interest more clearly in the legislation, enhancing the Government's ability to manage risk, and improving coordination across the Commonwealth.
The Bill also ensures evolving forms of international engagement are appropriately captured, including arrangements involving overseas campuses of Australian universities.
At the same time, the Bill simplifies the Scheme's operation by streamlining notification requirements and reducing regulatory burden.
Together, these reforms modernise and strengthen the Foreign Arrangements Scheme, ensuring it remains fit for purpose in a more complex international environment.
The Government recognises the significant value that foreign partnerships bring to Australia economically, culturally and strategically. These reforms ensure Australia continues to engage and develop vital partnerships internationally, while appropriately managing risk and protecting our national interest.
Quotes attributable to Minister for Foreign Affairs, Penny Wong:
"Australia's international partnerships are a source of real strength, driving jobs, supporting growth and deepening our global ties.
"In a more contested environment, we need clearer rules and stronger safeguards to ensure these engagements always align with our national interest.
"These reforms sharpen our focus on risk where it matters most, while making it easier to pursue the partnerships that deliver for Australians.
"This is about keeping Australia open to the world, while being clear‑eyed about the risks and confident in protecting our interests."
Quotes attributable to Assistant Minister for Foreign Affairs and Trade, Matt Thistlethwaite:
"The Foreign Arrangements Scheme provides a framework for cooperation on foreign policy and foreign relations between the Federal Government and state, territory and local governments and public universities.
"These changes modernise the Scheme to reflect today's strategic environment and ensure all levels of government can continue to engage internationally with confidence.
"By reducing administrative burden and adopting a more targeted, risk-based approach, we are supporting international cooperation with trusted partners while safeguarding Australia's national interest."
