New South Wales has finalised an agreement with the Commonwealth to fully fund its public schools by 2034, marking a major shift in national education funding. The deal will inject $4.8 billion into NSW public schools over the next decade, bringing the state in line with South Australia and Victoria, which secured similar agreements last month.
Queensland now remains the only state yet to reach a deal, as negotiations with the federal government continue. The agreement ensures the Commonwealth will increase its share of public school funding from 20% to 25%, addressing a long-standing funding gap that has been a point of contention between state and federal governments.
A Landmark Deal Reshaping School Funding
The agreement represents a significant departure from previous funding arrangements, under which states and territories contributed 75% of public school funding, with the Commonwealth covering 20%, leaving a 5% shortfall.
The new model, secured after months of negotiations, aligns NSW with the Schooling Resource Standard (SRS), a benchmark set to ensure adequate school funding.
According to Federal Education Minister Jason Clare, the additional funding will be tied to key education reforms, including individualised student support, evidence-based teaching, phonics and numeracy assessments, and mental health initiatives.
Clare described the deal as “the biggest state in the country signing up,” highlighting its significance in ensuring equitable access to education.
The agreement also eliminates certain accounting practices introduced under the previous Coalition government, which allowed states to classify non-school-related expenses—such as capital depreciation—as part of their education budgets.
This adjustment aims to ensure that funding is used exclusively for school operations and student learning.
Queensland Left Behind as Other States Sign Agreements
With NSW joining South Australia, Victoria, Western Australia, Tasmania, the ACT, and the Northern Territory, Queensland now stands alone in not having signed a full-funding deal.
Discussions between Queensland and the federal government are ongoing, with the state’s Education Minister, John-Paul Langbroek, stating that negotiations are focused on securing “the best possible deal” before the current funding agreement expires in December.
Queensland was granted a one-year rollover of its existing funding arrangement in December last year, ensuring financial stability while talks continue. However, pressure is mounting for the state to finalise a long-term agreement, as education unions and advocacy groups push for a resolution.
The NSW Teachers Federation has welcomed the deal, calling it a “watershed moment” for public education. Its president, Henry Rajendra, stated that union members would “campaign vigorously” to defend the agreement in the lead-up to the next federal election, ensuring that funding commitments are upheld.
