Public schools potentially stand to lose nearly $30 billion in funding over the next five years if the stand-off between the Commonwealth and five states is not resolved. National Convenor of Save Our Schools, Trevor Cobbold, said failure to agree on future funding will be catastrophic for public schools.
“Public schools could be denied up to $28.1 billion in funding if the states refusing to sign a new funding agreement choose not to increase their share of funding the Schooling Resource Standard (SRS).”
“Public schools in NSW would miss out on $8.7 billion, those in Victoria and Queensland $8.4 billion, $2 billion in South Australia and $0.6 billion in Tasmania. The ACT is also refusing to sign but it is not under-funded.”
Mr. Cobbold said that public schools could miss out on billions in funding because the existing funding agreements will be rolled over if the recalcitrant states refuse to sign the Better and Fairer Schools Agreement 2025-2034.
“The Federal Education Minister, Jason Clare, has said that the existing funding agreements will be rolled over for the next five years if the hold-out jurisdictions refuse to sign by 30 September. He said the states have a choice of accepting the Commonwealth offer of an 2.5% increase in its share of funding the SRS of public schools of keep the old agreement.
“Public schools will lose in three ways if the states don’t sign. First, the Commonwealth offer to increase its share of funding public schools to 22.5% of the SRS will be denied to the non-signatory states. Public schools will lose about $6.6 billion in funding over 2025-2029 inclusive as a result.
“Second, the refusal states will not have to increase their share of funding public schools to77.5% of their SRS. They will only have to transition to the 75% target in the existing agreements by due dates that range from 2027 for NSW and Tasmania to 2032 for Queensland. Public schools will be under-funded by $7.8 billion over the period.
“Third, the states will be able to continue to claim expenditures excluded from how the SRS is measured as part of their share of funding public schools. They can claim expenditures on capital depreciation and school transport up to 4% of their SRS share. They can also claim all expenditures on regulatory authorities such as curriculum bodies. These accounting tricks will deny public schools $13.7 billion in funding over the next five years.”
Mr. Cobbold said a simple compromise would resolve the issue and ensure that public schools are genuinely fully funded by 2029.
“Save Our Schools calls on:
- The Commonwealth Government to increase its share of funding public schools from 20% to 25% of their SRS.
- State governments to end the accounting tricks and increase their share of funding public schools to 75% of their SRS.”
“The Commonwealth should play a greater role in increasing equity in school outcomes. This is a national goal for the national government.”
“Public schools will not be fully funded until the states increase their funding share for public schools to 75% of their SRS and drop their accounting tricks to show they are sincere about fully funding public schools.”
Mr. Cobbold said that fully funding public schools is critical to improving school outcomes and reducing inequity as well as increasing productivity and economic prosperity.
“Overcoming the effects of educational disadvantage remains the fundamental challenge facing Australian governments. The Commonwealth and state governments must come to their senses and end the stand-off.”
