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New Funding Arrangements for Independent Schools

On 20 September 2018 the Prime Minister, the Hon Scott Morrison MP, and the Minister for Education, the Hon Dan Tehan MP, announced new school funding arrangements. Based on ISCA’s current understanding of the announced measures, the following is a summary of those arrangements:

Arrangements for 2019

  • Schools will receive funding based on their ‘Best of’ 2011 or 2016 SES score
  • Guaranteed 3% indexation for individual low or negative growth schools
  • System weighted average SES scores for systems will continue with payment outside the model, using best of 2011 or 2016 SES scores

Phased in Personal Income Tax (PIT) SES score methodology

  • Schools can opt-in to use PIT SES scores in 2020 or 2021
  • All schools will be on PIT SES scores in 2022
  • Individual schools and schools within systems can choose whether to commence in 2020 or 2021
  • System weighted average funding ceases from beginning of 2020

Amended transition pathways

  • Schools transitioning up to 80% Commonwealth share of SRS will complete their transition in 2023
  • Schools transitioning down to 80% Commonwealth share of SRS will complete their transition in 2029 (additional 2 years)
  • Applied at the school level, including within systems
  • Systems will still be able to redistribute funding between schools

Choice and Affordability Fund

  • Total of $1.2 billion over 10 years, to be split between the Catholic and Independent sectors based on the sector share of schools
  • Aims to support parental choice, opportunity and diversity, structural adjustment assistance, support underperforming schools and targeted extra support for schools etc
  • Incorporates the $40 million National Adjustment Assistance Fund
  • $485 million for the Independent sector from 2020 to 2029
  • There will be agreed priorities and an agreement with government regarding how funds are to be used to support schools through state and territory Associations of Independent Schools

Additional work

  • Establishment of a Working Group to progress on-going technical work across a wide range of data collection and matching issues
  • From 2018 there will be an annual address collection which will include parents’ names and addresses
  • Appeals process to be determined in consultation with the sector

Reviews

  • Review new arrangements in 2027
  • Review SRS indexation by 2023
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