Rugby Australia (RA) have secured agreement from New South Wales (NSW) to take over the provincial union's high performance programme as part of a "strategic reset" but have work to do to convince the other states to sign up, RA boss Phil Waugh said.
RA said in August member unions had agreed on structural reforms which it hopes will lead to a stronger Wallabies team and World Cup glory.
The reforms will push Australia closer to the centralised models of New Zealand and Ireland, where provinces answer to the national body on high performance decisions affecting Test rugby.
On Tuesday, RA said the New South Wales Waratahs and the NSW Rugby Union (NSWRU) had become Australia's first Super Rugby club and member union to formally commit to the integration plan.
"The key here is getting a more successful national team," Waugh (above) told a press conference in Sydney on Tuesday.
"That drives the interest of those that don't follow rugby.
"You look at the history of when Australia has done well at a Wallaby level, it drives interest into the game, it drives commercial interest into the game."
NSW's integration will see RA take over the Waratahs' high performance and commercial operations, while the state union retains ownership of the community game.
As the country's most well-resourced rugby state, NSW's backing is a boost for RA's reform drive.
However, other member unions have pushed back on handing over commercial control.
The Australian Capital Territory Rugby Union (ACTRU), which runs the twice Super Rugby championship-winning Brumbies, publicly criticised RA last month for what they described as a "full takeover" and said they had engaged lawyers.
Waugh said RA and the ACTRU were on better terms than a few weeks back but could not guarantee any more member unions would commit to integration before the Super Rugby season starts on 23 February.
The Brumbies declined to provide immediate comment.
"The (NSW) integration needs to be successful for others to come in," said Waugh.
"(There's) a lot to do but I do feel fairly optimistic around the direction we're going."
Australian rugby has operated under a decentralised model since amateur days, with rival states competing for talent, coaches and resources.
The model has been blamed for the Wallabies' steep decline in recent years and the struggles of the country's five Super Rugby teams.
The twice World Cup-winning Wallabies have slipped to ninth in the world rankings and crashed out of the group stage at France, Australia's worst-ever performance in the tournament.
No Australian team has won a Super Rugby title since the Waratahs in 2014.
Following the World Cup debacle under departed coach Eddie Jones (above), RA is under pressure to revive the Wallabies' fortunes in time for the British and Irish Lions tour in 2025 and the 2027 World Cup on home soil.
RA have yet to decide who will run the integrated high performance programme or take over the Wallabies from Jones.
Waugh said RA hoped to announce their new "director of high performance" by Christmas and have a new Wallabies coach in place before the start of Super Rugby.
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