NSW public school funding deal reached with Fed Govt

NSW has agreed to a funding deal with the Federal Government that will see the state's public schools receive $4.8 billion over the next decade.

NSW public school funding deal reached with Fed Govt

Public schools in NSW will receive $4.8 billion of federal funding over the next decade, after the state and federal governments reached a joint funding deal.

As part of the deal, public schools in the state will implement reforms including improved access to mental health supports.

Queensland is now the only jurisdiction to have not reached a deal with the Federal Government over a new model to better fund public schools.

Background

All schools receive government funding — a combination of Federal, state and territory support. The minimum funding a school requires to operate is measured by the schooling resource standard (SRS).

In 2023, a report from the Australian Education Union found 1.3% of public schools were meeting the SRS, compared to 98% of private schools.

Last year, the Federal Government announced a “Better and Fairer Schools Agreement” (BFSA) to ensure better funding for public schools.

Funding

Prior to the BFSA, the Federal Govt provided 20% of the SRS, with state and territory governments providing the rest. The Federal Government initially offered to increase its funding from 20% to 22.5% for all government schools by the end of the decade.

NSW was among nearly all other states and territories to initially reject this offer. The Federal Government has now agreed to lift its contribution from 20% to 25% by 2034.

The funds will be spread across more than 2,200 public schools over the next 10 years.

Reforms

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In a statement, the Federal Government said the agreement was “not a blank cheque”.

Schools will be encouraged to meet a series of targets in exchange for the funding, including higher completion rates of year 12.

Other targets include improving NAPLAN results for reading and numeracy, lowering the number of students avoiding school, and rolling out extra tutoring or small-group sessions to help students who are academically struggling.

Reaction

Shadow Education Minister Sarah Henderson said the Coalition would “honour all school funding agreements” if it wins the next federal election, which is due by 17 May.

However, she urged the Government to “come clean” and release the full details of the agreement.

The NSW Teachers Federation said the agreement is a “watershed moment”, with President Henry Rajendra saying it will provide “life changing support necessary for those with learning needs.”

Other states

While it initially rejected a deal proposed in July 2024, Victoria recently reached a similar guarantee of funding from the Federal Government.

Under the Victorian deal, federal funding will rise from 20% to 25%.

South Australia, NT, ACT, Western Australia, and Tasmania have all also reached deals with the Federal Government.

Queensland is now the only state still negotiating a public school funding model.

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