Though originating from the same founders, the various foundations of diocesan Sisters of Saint Joseph differ in significant ways from the Sisters of Saint Joseph of the Sacred Heart administered centrally from North Sydney. The prospect of federation is raised at various points throughout the early 20th century, but does not gain traction among the disparate groups until the Second Vatican Council.
The approval of the Josephite Federation comes in the form of a Decree of Establishment from the Sacred Congregation of Religious given in Rome on 28 July 1967, in response to the request made by the congregations of the Sisters of Saint Joseph situated in Perthville, diocese of Bathurst; Goulburn, archdiocese of Canberra and Goulburn; Lochinvar, diocese of Maitland; New Town, archdiocese of Hobart and Whanganui, archdiocese of Wellington, for the establishment of a Federation.