Commonwealth to lift public school funding to 25 per cent

A new 10-year funding agreement that will define the future of the nation’s 10,000 schools and could end the education funding wars is closer after Victoria and South Australia signed on today.

Under the Better and Fairer Schools Agreement (BFSA) the Commonwealth has agreed to lift its share of public school funding to 25 per cent, up from 20 per cent.

States would also be required to lift their share of funding to 75 per cent, meaning all public schools would finally be on track to reach the full amount of funding recommended by the Gonski review in 2012.

“Today is about a principle that has driven me my whole life. No-one held back, and no-one left behind. Making sure that every child in government schools gets the support they need to thrive,” Prime Minister Anthony Albanese told the National Press Club.

Western Australia, Tasmania, the Northern Territory (where the Commonwealth will pay 40 per cent of costs) and the Australian Capital Territory (ACT) have already signed on, leaving Queensland and New South Wales as the only states yet to agree.

Both states are said to be considering the government’s new proposal. 

Currently, public schools across all states and territories, except for the ACT, are billions of dollars short of the funding needed to meet minimum standards.

“This is real funding tied to real reforms to help students catch up, keep up and finish school,” Education Minister Jason Clare said.

“It’s not a blank cheque. I want this money to get results.”

Funding contingent on results

Under the new deal, states will also have to end an accounting loophole that allowed them to claim 4 per cent of their spend on non-school costs such as capital works.

The Australian Education Union (AEU), the Greens and public education advocates have long argued for this clause, negotiated during the Morrison government, to be scrapped.

“Importantly, this new agreement means accounting practices — like capital depreciation — can no longer be counted as education investment. Instead, every dollar of funding will go into helping children learn,” Mr Albanese said.

Together with the extra money from the Commonwealth, the new requirements on the states could result in billions flowing to public schools in 2025, with the deal running until 2034.

The new money would be contingent on the states expanding phonics and numeracy checks as well as improving dire NAPLAN results.

Negotiations have been long and tortured with state education ministers breaking party unity to call on federal Labor to honour an aspiration it took to the last election to fully fund public schools.

The federal government had initially offered to increase its share to 22.5 per cent, but has doubled the offer after criticism from South Australia, New South Wales, Victoria and Queensland.

“This agreement delivers all public schools the funding they deserve to improve outcomes for kids who need support,” South Australian Premier Peter Malinauskas said.

Independent and Catholic schools have received full funding for some time — with an estimated 40 per cent of these schools actually receiving more than the amounts recommended by the Gonski review.

These over-funded private schools will be weaned off the extra money by 2029.

That funding disparity has contributed to an exodus from public schools with 36 per cent of parents now paying to send their children to a private school.

Amid growing criticism from teachers’ unions, last year independent and Catholic schools called for public schools to also be fully funded.

With the federal opposition prioritising classroom reforms over funding increases, education is shaping up as an election battleground.

Opposition education spokesperson Sarah Henderson has been critical of Labor’s failure to land a new funding deal — which has already been delayed by a year.

The Australian Education Union called the new deal a “major breakthrough” that would be “life-changing” for students.

“This heralds a major breakthrough on full and fair funding negotiations for public schools. That is life-changing for students and for the teachers and support staff who give 100 per cent every day,” AEU Federal President Correna Haythorpe said.

“Teachers, students and parents will finally see their public schools funded to the level needed for every child to reach their potential.”