From 2020, the Direct Measure of Income (DMI) of capacity to contribute (CTC) replaced the previous area-based socio-economic status (SES) score measure to determine the CTC for most non-government schools.
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New CTC scores for non-government schools
A CTC score is a measure of a non-government school community’s capacity to contribute to the ongoing costs of running the school. A school’s CTC percentage affects the amount of base recurrent funding the school attracts from the Commonwealth Government under the Australian Education Act 2013 (the Act).
The Direct Measure of Income (DMI) is based on the median income of parents or guardians of students at a non-government school. More information about how the DMI is calculated can be found in the DMI fact sheet.
To support a smooth transition to the DMI, in 2020 and 2021 schools will have their funding based on either their 2011 Census SES score, their 2016 Census SES score or their DMI score - whichever is best for them financially.
The new direct measure will apply to all schools by 2022.
From 2022, in limited circumstances where a DMI score cannot be calculated for a school, the refined area based (RAB) methodology will be used to calculate a CTC score. More information about how and when a RAB score is calculated can be found in the RAB fact sheet.
CTC scores for 2021 and 2022
For the majority of schools, the Minister for Education (or delegate of the Minister) has determined 2021 and 2022 CTC scores in accordance with the Australian Education Regulation 2013 (the Regulation); and made a determination under subsection 52(1) of the Australian Education Act (the Act).
However, for a small number of schools, the Minister (or delegate) has determined a CTC score, not calculated in accordance with the Regulation, consistent subsection 52(4) of the Act. The primary reasons for these include quality and privacy concerns and new schools. The Non-government schools’ CTC scores table provides information on why a school’s final CTC score differs from the score calculated in accordance with the Regulation.
Reviews of CTC scores
Under subsection 53(2) of the Act, an approved authority may apply to the Department of Education, Skills and Employment (the department) for a review of a CTC score if it believes the score does not accurately reflect the school community’s circumstances.
The Guidelines for Approved Authorities – Capacity to Contribute (CTC) Review Process (the Guidelines) have been designed to assist approved authorities in determining whether exceptional circumstances exists for a school to seek a review. The Guidelines were developed in consultation with the non-government school sector and informed by the Australian Bureau of Statistics’ Technical Framework for the Capacity to Contribute Review Process (the Framework). The Framework provides valuable complementary information.
In addition to reviews requested under subsection 53(2) of the Act, for 2020 and 2021, the department will facilitate an administrative review of a DMI score where it is three funded points or more greater than the school’s SES score. These reviews aim to provide authorities with certainty and enable planning. They will be subject to the same assessment process as reviews of funded scores.
To ensure the transparency of reviews, an independent External Assessor will oversee each review decision to ensure the department’s assessment processes are appropriate and thorough.
CTC scores determined following a CTC review, and the reasons for making the determination, are published in Outcomes of CTC score reviews.
To request the review of a CTC score, an approved authority should complete the review application form and submit it, together with relevant supporting documentation:
via email, to: CTCReviews@dese.gov.au
or via post to:
CTC Review Team
Department of Education, Skills and Employment
GPO Box 9880
Canberra ACT 2601
Note: CTC does not apply to government schools, non-government special schools or special assistance schools, non-government Majority Aboriginal and Torres Strait Islander schools, or non-government sole-provider schools.