Victoria and South Australia have achieved a significant milestone in education funding, securing a landmark 5% increase in federal funding for public schools.
The move brings both states closer to fully funding public schools by 2034, setting a new benchmark in education reform.
Meanwhile, Queensland and New South Wales remain in negotiations, with both states yet to commit to the historic federal education agreement.
The Funding Gap : Addressing Longstanding Disparities
The newly secured agreement highlights a critical challenge in Australia’s public education system: the persistent underfunding of public schools compared to their private counterparts.
While private schools often receive more than their required funding, nearly 98% of public schools remain underfunded, according to the Australian Curriculum, Assessment and Reporting Authority (Acara).
This disparity has left public school students at a disadvantage, particularly those in underserved communities or with additional learning needs. Addressing this inequity has been a longstanding goal of education reform.
Current Funding Structure
Under the previous arrangement established by the Coalition, states and territories provided 75% of public school funding, with the commonwealth contributing 20%, leaving a 5% shortfall in meeting the Schooling Resource Standard (SRS).
The SRS, introduced during the Gonski reforms, represents the baseline funding required to deliver a quality education to all students.
Key highlights of the existing funding model :
- Coalition’s contribution: 20% of the SRS.
- State responsibility: 75% of funding requirements.
- Shortfall: 5%, leaving most public schools underfunded.
This education funding shortfall has long hindered the ability of public schools to meet the needs of all students, underscoring the critical importance of reforms to ensure equitable access to quality education nationwide.
Victoria and South Australia’s New Agreement
The new deal lifts the federal government’s contribution to 25% of the SRS for Victoria and South Australia. Over the next decade, this commitment will close the gap, ensuring public schools in both states receive 100% of their required funding.
Additionally, the agreement eliminates accounting practices introduced under the previous government, which allowed states to count 4% of their contribution toward non-educational expenses, such as capital depreciation.
Progress and Resistance Among States
The education funding landscape in Australia highlights significant disparities in resource allocation, with some states progressing toward full funding while others remain hesitant.
This divide reflects varying regional priorities and fiscal strategies, as well as differences in negotiating positions with the federal government.
The agreements reached with Victoria and South Australia mark a pivotal step, but they also underscore the complexity of achieving nationwide consensus on education reform.
The ongoing negotiations with Queensland and New South Wales demonstrate the challenges in balancing equity with individual state interests.
States Joining the Agreement
Victoria and South Australia now join Western Australia, the Northern Territory, the ACT, and Tasmania in signing the federal government’s Better and Fairer Schools agreement.
The program, launched by Education Minister Jason Clare, increases the commonwealth’s funding share by 2.5% for participating states, with an additional 40% allocation for the Northern Territory due to specific needs.
Key outcomes:
- Victoria and South Australia receive 5% more funding, doubling the federal contribution compared to the original agreement.
- Other participating states benefit from a “no disadvantage” clause, ensuring they can receive the increased 2.5% funding.
Unresolved Negotiations
Queensland and New South Wales continue to hold out on the agreement. Both states remain engaged in discussions, seeking favorable terms that align with their education priorities.
Leaders from these states have emphasised the need to secure long-term funding arrangements that will benefit their students.
Impacts of the Agreement
The newly secured education funding agreement represents a pivotal moment for public education in Australia. By addressing the chronic underfunding of public schools, the deal aims to reduce disparities in education quality across states and territories.
Experts suggest that fully funding the Schooling Resource Standard (SRS) will not only improve outcomes for disadvantaged students but also help standardize education resources nationwide, fostering greater equity within the system.
However, challenges remain in ensuring all states commit to similar reforms, particularly Queensland and New South Wales.
Funding for Key Education Reforms
Education Minister Jason Clare emphasized that the additional funding will be tied to reforms designed to enhance educational outcomes. Initiatives will focus on supporting students in critical areas, including:
- Mental health services for students.
- Targeted assistance for students with disabilities and learning difficulties.
- Improved attendance and engagement strategies.
“It’s not a blank cheque,” Clare noted, underscoring the need for accountability in delivering results.
Funding Breakdown
- Victoria’s public schools are set to receive an additional $2.5 billion over ten years, addressing underfunding for nearly 98% of schools in the state.
- South Australia’s education minister, Blair Boyer, estimated the deal will secure $248 million annually for the state, directly benefiting students with special needs.
Calls for Nationwide Support
Education advocates, including Australian Education Union (AEU) President Correna Haythorpe, have hailed the agreement as a major breakthrough. Haythorpe urged the Coalition and remaining states to back the funding reforms to prevent further delays in meeting the SRS.
Prime Minister Anthony Albanese also lauded the agreement, describing it as a “step forward” toward achieving equitable education standards for all Australian students. He expressed optimism that ongoing discussions with Queensland and New South Wales would yield positive outcomes.
