Policy transfer is one possible explanation for how and why the state of Victoria in Australia adopted strikingly similar public sector reforming policies to those implemented by New Zealand from the mid-1980s to early 1990s. This case study sought to assess the importance of policy transfer from New Zealand in relation to other possible explanations for the origin of Victoria's reforms. The four hypotheses drawn from the policy transfer and policy network literature to explore the origin of the changes in Victoria are: 1) That the adoption of similar policies was the result of agents of change responding to a change in thinking; 2) That the adoption of similar policies was the result of various networks operating between New Zealand and Victoria; 3) That the adoption of similar policies was the result of multi directional exchanges involving New Zealand, Victoria and supranational organisations; and
4) That the adoption of similar policies was the result of Victoria copying the legislation enacted in New Zealand. A range of secondary material and interviews with those involved in the reforms provided most of the material for this study. The conclusion drawn is that policy transfer from New Zealand was indeed a salient factor in the adoption of Victoria's public sector reforms, but was not the only factor. Local factors within the state and a shift in international thinking were also important facilitators of the change. Credit rating agencies emerge as an unexpected yet strong influence in the reforms that eventuated in Victoria
