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The NBA was established by the National Blood Authority Act 2003 following the signing of the original National Blood Agreement by all state and territory health ministers. The National Blood Agreement sets out the primary and secondary policy objectives of all Australian governments in relation to the Australian blood sector. The Australian Government, and state and territory governments, signed the agreement in 2002 and, in so doing, agreed to implement a coordinated national approach to policy setting, governance and management of the Australian blood sector, including administrative and financial arrangements. Under the agreement, blood products are provided at no direct cost to patients. The blood sector is funded by the Australian Government (63%) and by the states and territories (37%), with the funding provided by each state and territory determined by the quantity of product provided to each particular state and territory.