1 May 2024

Funding Australian Government Schools

In Australia, state and territory governments contribute the most significant share of funds to government schools. Fees, charges, parental, or other private contributions also supplement state or territory funds. Currently, all funding schemes operate based on need.

New South Wales

Here, the Resource Allocation Model (RAM) is used to determine equitable funding. The approach adopts a base and loading approach to create an efficient, just, and transparent allocation of NSW public education funds for all public schools. The model accounts for the varying needs of both pupils and schools, as described in the School Budget Allocation Report (SBAR). The RAM includes three funding components – targeted funding, equity loadings and base school allocation.

Targeted or needs-based funding is earmarked for:

• Refugee students enrolled in Australian schools for less than three years.
• New arrivals at the beginning of their English language learning and proficiency (EAL/D).
• Integration support for students with disabilities in mainstream classes who need moderate to high adjustment to access educational opportunities on the same footing as their peers.

The seven RAM loadings include:

• Socio-economic background
• Minor disability adjustments
• Indigenous background
• English proficiency level
• Base school allocation, focusing on:
• Running costs
• Staff numbers

Base school allocations include:

• Funding of initiatives such as professional development seminars.
• Location (focuses on need in conjunction with RAM loading).
• Per capita (RAM loading).

All schools receive the SBAR during Term 4, setting out the school funding allocation for the following year. This calculation accounts for needs-based funding, base operational costs and the seven RAM loadings. SBAR funds assist principals to achieve what is outlined in Strategic Improvement Plans (SIPs), with a focus on improving outcomes for all pupils.

SBAR funding and staffing allocations recorded as full-time equivalent (FTE) can only be used during the year in which they are granted. The RAM model:

• focuses on student and school needs
• is transparent and efficient
• aims to be sustainable and adaptable
• provides certainty for schools.

Queensland

Queensland public schools are funded via three principal schemes. The School Budget Solution (SBS) is a safe online tool which manages school resources in one place (including finance and staffing funding) using streamlined processes. The SBS is divided into three parts: financing, staffing, and forecasting. This assists leadership teams to decide how to make the best use of available resources to improve student outcomes and ensure that schools run smoothly.

The School Subsidy Scheme (SSS), an ongoing annual program funds infrastructure which falls outside the remit of similar programs offered by the DoE. Program funding can be used for projects of $50,000 and above, with a maximum subsidy for each project of $500,000. Upon completion of an application, projects are prioritised according to total funding available, regional priority rating of submissions, and the need to share funding across all Queensland public schools.

Applying institutions are expected to contribute part of the cost determined by the SSS calculator. Calculations account for the school’s location, enrolment numbers, and estimated project costs.

The DoE awards both Core and Targeted Funding to government schools. Core Funding pays for everyday costs while Targeted Funding goes to students with additional identified and specific needs. A school’s Annual Implementation Plan (AIP) must identify targeted appropriations. This ensures Targeted Funding is spent according to prescribed guidelines and has enabled specific outcomes as described in the AIP. Targeted Funding goes into the following:

• Education Support Funding program (ESFP)
• Maintenance (planned and unplanned)
• Go for Gold Round 2 - sports infrastructure
• Playgrounds and Tuckshop upgrade program

 Both government and non-government schools and pupils can apply for a range of DoE grants, scholarships, and appropriations.

Tasmania

Tasmania has School Resource Package (SRP) funding for government schools. SRPs are based on student enrolment and identified student needs. The Student Assistance Scheme (STAS) offers assistance towards levies for K-12 low-income families. STAS funding is distributed to schools as part of needs-based funding. Computers For Students allocations pay for digital tech in the classroom.

The Department uses an Educational Adjustments funding model to assist disabled students.

Last year, the Australian Education Union (AEU) called for increased state and federal funding of public schools to close the ever-widening gap between state and private schools that has existed since 2018. According to the AEU, no Tasmanian public school is currently funded to the minimum level of funding required by the Schooling Resource Standard (SRS). The SRS is an estimate of how much a school needs to spend educating each student. This was recommended by David Gonski in his 2011 report.

In 2024, starting with Western Australia, the federal government is negotiating increased funding according to the SRS. The Commonwealth government will now fund 21.25% of the public-school budget in 2025 and 22.5% in 2026, an increase from the current 20%. If other states or territories negotiate a better deal with the federal government, the new agreement will be extended to all jurisdictions. A report by independent education economist, Adam Rorris, calls for funding to 100% of the SRS by 2028. This will create better equity since private schools in most jurisdictions are overfunded compared to public schools, although public schools typically educate the most disadvantaged students.

Victoria

Like Tasmania, Victoria’s government schools are funded through Student Resource Packages (SRPs). The amount received by schools depends on:

• enrolment numbers
• demographics of students and families
• their location.

SRPs include equity funding to assist students who face challenges due to health, disability, or family circumstances. Equity funding is allocated based on a three-year weighted average of student demographic information which schools gather each year in August. Although changes in funding vary due to different demographic patterns equity funding can’t be reduced by more than $90,000 compared to the previous year. The minimum amount of equity funding schools receive is $5000.

Western Australia

In Western Australia, the increased funding negotiated between state and federal governments will result in better outcomes for pupils from low socio-economic backgrounds, those living in regional, rural, and remote Australia, indigenous students, those with a disability, as well as ESL students.

Currently, funding is allocated to each student with additional funding provided to small and isolated schools, indigenous pupils, socially disadvantaged students, students with disabilities, and those from a non-English-speaking background. The student-centred model aims to:

• provide a simple and transparent funding process.
• allow principals to be more flexible with how they manage and allocate funding so it is put to the best possible use.
• allocate funding based on individual learning needs.
• be responsive to the needs of individual students and schools.

South Australia

South Australia’s Department for education allocates funding for learning, leadership, teaching support, administration, basic site operations, and core teaching activities.

All schools receive an outline of their funding in a Resource Entitlement Statement (RES). These statements reflect changes in parameters and approved policies where appropriate. Apart from the RES, a Parents In Education Funding scheme exists. Public schools can apply for funding to help parents:

• Engage in their children’s education.
• Support learning at home by creating strong partnerships with schools.

State Minister Blair Boyer insists that infrastructure upgrades are sorely needed in South Australia’s government schools.

Northern Territory

The Northern Territory government supports public schools via direct funding based on the School Resourcing Model. It provides differentiated regional and system support services. Schools can generate money through fundraising, selling educational supplies, offering optional extras, voluntary contributions grants, and facility hire.

With the School Resourcing Model (SRM), schools have control over how and where they use resources. The SRM has numerous aspects:

• Funding calculated with a student needs-based formula, which includes that allocated for students with disabilities: A base amount is provided for each student with additional weightings for specific, identified needs. These include:
• socio-economic disadvantage
• indigenous heritage
• number of indigenous students enrolled
• remote location
• low English-language skills
• school size
• distance education.

Student information is collected and validated by principals as part of the National August Census. This information contributes to a school’s student needs profile from which the average first unit rate is calculated and passed on to schools in October. This underpins the school preliminary (indicative) SRM funding for the next year. This is based on the number of students enrolled for the current year.

• Disability funding: Mainstream schools receive funding based on the number of pupils requiring minimum to high levels of adjustment under the Nationally Consistent Collection of Data for Students with Disability (NCCD) as documented in the previous August census. from 2022 onwards, additional funding is provided for high needs students. Mainstream schools receive a flat $880 per FTE disabled student. Special ed schools receive annual targeted funding, adjusted each semester to match enrolment figures.
• Facility funding: to pay for operational costs e.g. electricity, water, telephone, minor repairs, cleaning and grounds maintenance.
• Targeted funding: additional funding to supplement student needs-based funding which caters for specific, identified needs. This can include costs for intensive English units, special education or child and family centres.
• Central funding for school costs: This includes remote teaching allowances, principal salaries, teacher relocation expenses, and long service leave.

Schools match resources to identified student needs, improve outcomes, and use funding for the year in which it is allocated.

Australian Capital Territory

The ACT has adopted The Future of Education Strategy to underpin public education until 2028. The Strategy is based on the principles of equity, access, inclusion, and student agency. It aims to:

• Provide pupils with a personalised education with a holistic approach.
• Ensure that education professionals meet the needs of all students.
• Create robust learning communities
• Emphasise equity in learning and quality teaching.

The ACT supports students with identified additional needs, including those with disabilities, those from indigenous and non-English-speaking backgrounds. Support is also provided to students experiencing emotional, financial, family, or social vulnerabilities. Information about financial and other supports is provided by individual schools and the ACT Government’s Education website.

Federal Funding of Government Schools

Since 1974, the Federal Government has provided recurrent funding for government schools, under the Australian Education Act 2013. Capital funding for government schools has been provided to government schools since 1964 under the Act. Money is provided through the following:

• The Schools Upgrade Fund: for Improved Learning Facilities in a Covid-19 safe environment.
• Recurrent funding for public schools, special schools, special assistance schools, schools would mostly indigenous pupils, and sole provider schools. Recurrent funding is linked to the National School Reform Agreement (NSRA) agreed upon by states, territories, and the federal government to improve school outcomes.

In 2023, the federal government provided 20% of each public school’s Schooling Resource Standard (SRS), but this is set to increase in the future due to recent negotiations.

Bibliography

“All governments must commit to full funding of public schools.” Australian Education Union (AEU). 31 January 2024.

“Budgets, funding and grants.” Queensland Government. Last updated 10 March 2023.

“Education in the ACT.” ACT Government – Education. Accessed 21 March 2024.

“Find your school’s funding.” Vic.gov.au. Updated 6 December 2023.

“For Every Child: Fully Fund Public Schools.” Australian Education Union (AEU). 2023.

“Funding public schools.” Department of Education – Government of Western Australia. Accessed 6 March 2024.

“Government school funding in the Northern Territory.” Northern Territory Government. Accessed 6 March 2024.

“How schools are funded.” Australian Government – Department of Education. Last updated 20 February 2024.   

“Resource entitlement statement (RES) funding information for schools and preschools.” Department for Education South Australia. Last updated 14 October 2022.

“School Funding.” Association of Independent Schools NSW (AISNSW). Accessed 6 March 2024.

“Schools Funding – Resource Allocation Model.” NSW Government – Education. Last updated 20 October 2023.

“School Resourcing data.” Tasmanian Government. 1 March 2024.  

“School Subsidy Scheme.” Queensland Government. Last updated 19 January 2024.

“Student-Centred Funding Model.” Department of Education – Government of Western Australia. Accessed 6 March 2024.

“Student Resource Package – Equity Funding (Student-Based Funding). EDUCATION.VIC.GOV.AU. Last updated 1 January 2024.

“Targeted funding.” Queensland Government. Last updated 13 February 2019.

“Tasmanian Launch of Campaign for Full Funding of Public Schools.” Australian Education Union (AEU). 19 August 2023. https://aeutas.org.au/tasmanian-launch-of-campaign-for-full-funding-of-public-schools/

“The Resource Allocation Model (RAM) in 2024.” NSW Department of Education. Accessed 6 March 2024.

Clare, Jason, Roger Cook, and Tony Buti. “Australian and WA Governments agree to fully and fairly fund all Western Australian public schools.” Ministers’ Media Centre. 31 January 2024..

Clark, Shannon. “Funding for schools in Australia: a quick guide.” Parliament of Australia. Department of Parliamentary Services. Research Paper Series 2022-23. 24 April 2023.   

Cobbold, Trevor. “The Facts About School Funding in Victoria – An Update.” SOS (Save Our Schools) Australia. 12 October 2023.

Cobbold, Trevor. “Tasmanian Political Parties Must Step up for Public Schools.” SOS (Save Our Schools) Australia. 15 March 2024.

Morgan, Thomas, and Oliver Chaseling. “NT and federal governments unveil $1 billion package to fully fund public schools by 2029.” ABC News. 13 March 2024. 

Podwinski, Isabella. “Report reveals growing funding divide between the haves and have-nots across the nation's education system.” ABC News. 20 November 2023.

Wallace, Ruth, Sally Knipe, and Tracy Woodroffe. “There’s an extra $1 billion on the table for NT schools. This could change lives if spent well” The Conversation. 15 March 2024.

Young, Evan. “A battle is brewing over public school funding. Here's what's happening and what could come next.” ABC News. 2 February 2024.

Author
Estelle Borrey
PhD in European Languages and Cultures.