The new school funding agreements announced over the past few months represent an historic achievement by the Albanese Government. They promise full funding for all public schools after a decade of sabotage of the Gonski funding plan and neglect of public schools by successive Coalition governments. Full funding of public schools offers the prospect of increasing equity in school outcomes. However, there is considerable uncertainty as to whether the promise will be fulfilled.
It is important to understand the state of play of the funding agreements between the Commonwealth and state/territory governments in the context of the Federal election. Will they truly deliver full funding for public schools and when? Is the Coalition’s promise to match dollar-for-dollar genuine? Will the agreements ensure fair funding for all schools? These are pivotal questions.
Unfortunately, they cannot be answered with any certainty given the lack of detail about the agreements and the Coalition’s past record on funding public schools. Much uncertainty remains because there is plenty of opportunity for the promise to be undone and there is little detail about the path to full funding. Moreover, claims by the Education Minister, Jason Clare, that the agreements will ensure that every child will get the funding they deserve and the same chance in life are far from the truth.
Over the past year, three different types of funding agreements were negotiated between the Commonwealth and state and territory governments to apply in different jurisdictions over different time periods from 2025. The main arrangements under the agreements are summarised in the table below.
Heads of Agreement between the Commonwealth and the Western Australian, Tasmanian, ACT and Northern Territory governments were signed during 2024 and included bilateral funding agreements were to apply from 2025 to 2029. The agreements with Western Australia, Tasmania and the ACT are replaced by a new Heads of Agreements negotiated in early 2025. The Northern Territory agreement will continue to apply for 2025-2029.
Interim funding agreements were signed with the New South Wales, Victorian, Queensland and South Australian governments at the end of 2024 to apply for 2025.
A new Heads of Agreement between the Commonwealth and the New South Wales, Victorian, Queensland, Western Australian, South Australian and ACT governments was signed in early 2025 to apply from 2025-2034. This is now the operative agreement for these jurisdictions. In the absence of any further information, it is assumed that the SRS shares agreed for 2025 in the earlier agreements apply under the new Agreement.
7 April 2025
Trevor Cobbold, National Convenor, SOS - Fighting for Equity in Education