Fairer funding for student needs

Fairer and more transparent funding for all Australian students

Building on the extra $1.2 billion provided for schools in the 2016-17 Budget, the Government will invest record amounts in education, with $18.6 billion in extra schools funding to be invested over the next decade.

This shows the Government’s unshakeable commitment to our education system, ensuring funding is sustainable, focused on need and provides long-term certainty for Australian parents and students.

The Government is transitioning to a schools funding model that is fundamentally fair, based on need, more transparent and tied to reforms that evidence shows boost educational outcomes.

Funding for schools will be distributed through a needs-based funding model, as recommended by the Review of Funding for Schooling led by Mr David Gonski AC in 2011 and will include a base amount for all students with loadings to address disadvantage.

Current funding arrangements contain 27 different deals which are not based on the needs of students. At present, students with the same needs within the same sector receive different levels of Commonwealth funding, simply because of the State in which they live.

Under the new model, schools will be funded for each student based on need, irrespective of location.

Commonwealth funding will transition over 10 years to a consistent share of the funding standard of 20 per cent for government schools and 80 per cent for non-government schools. This reflects the Commonwealth’s role as a minority funder for government schools and majority funder for non-government schools.

These reforms mean that those students with greatest need will receive the highest levels of funding from the Government.

Funding that better targets disadvantaged schools

Targeted transition assistance will be available for disadvantaged schools that need help to transition to the new model.

Funding will be tied to reforms proven to lift student outcomes to ensure the record funding being provided for schools drives better results, accountability and transparency. It will also be contingent on the States maintaining their real per student funding levels.

Over the next ten school years all sectors will receive growth in Commonwealth funding, with average increases of around 4.1 per cent per student across Australia.

From 2018 to 2027, funding is estimated to grow at an average annual per-student rate of 5.1 per cent for the government sector, 3.5 per cent for the Catholic sector and 4.1 per cent for the Independent sector.

The Government’s package of funding and reforms provides a sustainable and fair model for schools now, and long-term certainty for parents and schools into the future.