How and when will schools move to the Quality Schools funding arrangements?

Fact sheet

By 2029 all schools will have transitioned to their Quality Schools funding levels

Over 2018 to 2029, all schools will move to being funded at consistent Commonwealth shares of the Schooling Resource Standard (SRS).

State and territory governments have constitutional responsibility for the provision of school education. The Australian Government has historically been the majority public funder for non-government schools. This reflects the government’s commitment to support parental choice and diversity in the schooling system, which will continue under new arrangements. State and territory governments are the majority funder of the government sector.

Under the Quality Schools arrangements, the Australian Government will fund:

  • 20% of the total SRS for government systems, reflecting its role as the minority public funder of government schools
  • 80% of the total SRS for non-government schools and systems, reflecting its role as the majority public funder of this sector.

The majority of schools and systems will receive increases in their Australian Government per student funding

Most schools currently are funded below their target Commonwealth share of the SRS. Schools currently receiving less than the target Commonwealth share will transition more quickly to the new share by 2023.

A small number of schools will have their recurrent funding reduced

A small number of non-government schools are expected to have their recurrent funding reduced. This is as a result of the transition to consistent shares of the SRS and the use from 2020 of a Direct Measure of Income to calculate the capacity of a non-government school community to contribute to the costs of schooling.

The funding reduction will occur in a manageable way with a gradual transition over time to the Quality Schools arrangements.

Additional Commonwealth funding will ease the transition

The Australian Government is providing additional funding and support to ensure a smooth transition to the new arrangements.

In 2018 and 2019, this included $243.6 million in interim additional financial assistance for non-government schools while the Direct Measure of Income of capacity to contribute was being developed.

From 2018 to 2023, the Australian Government is also providing $46.1 million for Australian Capital Territory non-government schools to assist transition to the new arrangements.

From 2018 to 2027, $78.5 million will be provided for government schools in the Northern Territory to accelerate evidence-based reforms to improve student outcomes and $20 million to support literacy programs in Tasmania.

Over 2020 to 2029, to complement the needs-based recurrent funding arrangements, the government is introducing the Choice and Affordability Fund (the Fund) in 2020. The $1.2 billion Fund will provide the non-government sector with a flexible means of driving other government priorities, including supporting parental choice and affordability and assisting schools in regional and remote areas and in drought affected areas.