The role of Government in the 21st century has been dynamic and is rapidly changing beyond conventional understandings of public administration. Whilst, widespread reform to public administration has occurred within Australia, there has been limited applied investigation of their impact.Tasmania's Health and Community Sector provides an illuminating example of the challenges faced in this new policy paradigm. This case study shows higher levels of trust and reciprocity. However,significant structural barriers to an effective working relationship remain;particularly around organisational memory and long term policy planning. The findings in the case of Tasmania provide significant lessons in policy making and show the challenges facing consultation and collaboration between Government and Non-Government sectors.