The economic, political and institutional context in which there has been implementation of PPPs is impacted by the federal system of government in Australia. Apart from the federal or commonwealth government of Australia, there is a participation of 6 state governments of Tasmania, Western Australia, Southern Australia, Queensland, Victoria and New South Wales (Zappalà, 2003). Each of these 6 governments is known to have their own constitution along with the two territories of Northern Territory and Australian Capital Territory. The role played by Australian government can be restricted to the management of fiscal policy and micro level economics, increment of revenue of taxation, and national security and international relations. Due to their cost to the governments, extreme complexity, and high visibility in politics, PPPs have been providing a specific challenge to the state audit, public transparency and public accountability (Dooren, 2011).
In the highly complicated environment, one of the most significant components related to robust accountability helps in ensuring the clear appreciation and understanding of the responsibilities and roles of significant participants within the framework of government. This includes the stakeholders of the organization and the ones entrusted for the management of resources and the delivery of outcomes required (Flinders, 2005). The lack of appropriately designated responsibilities and roles ends up weakening accountability and further ends up threatening the achievement of objectives set by the organization. The experience of any uncertainty by public and private participants from this perspective can help in creating confusion regarding who has the accountability for what, while perceiving their relationships with the groups of stakeholders (Kee, 2011).