Australia and Tonga have signed what's been dubbed a Performance Partnership, which Canberra says will assist the Government of Tonga in its economic and public sector reforms.
Foreign Minister, Alexander Downer, announced last week that Australia would provide additional aid funding to countries that meet agreed performance criteria.
"He says the Tonga Australia Performance Partnership is an example of this new approach ."
In the coming year Australia will give Tonga nearly one and a half million US dollars of additional aid if agreed milestones for economic policy and governance reform are met.
The arrangement in its first year will focus on improvements in budget processes and tax administration, including the implementation of a new compliance regime to support tax reforms.