Australia’s new schools funding agreement – where is it at?

The federal government released details of the new schools funding agreement at the end of July, including an extra $16 billion for Australian schools. The agreement is due to replace current arrangements from January 1, 2025. There has already been a 12-month extension to the current agreement (which was due to expire at the end of 2023).

The new agreement requires states and territories to do specific things to improve student outcomes. In return, they get increased federal funding for schools.

The federal government has offered to increase its contribution to funding government schools from 20% to 22.5% of the Schooling Resource Standard. This is the estimated cost of educating students to an adequate level.

While the Northern Territory, Tasmania and Western Australia have signed up to the agreement, the remaining states and territory have not. They say this is not enough to run their schools and that it is not full funding being offered because of the 4 percent loophole, that includes money spent by government that doesn’t go directly to schools.

According to Federal Education Minister Jason Clare has warned the remaining states and territory that if they don’t sign, they will have to fall back on the past one, which capped commonwealth funding to public schools at 20%.

The Australian Education Act requires states and territories to commit to national agreements as a condition of getting federal money.