1. Quality Schools Package
Tony Cook PSM
Australian Government
Department of Education and Training
Presentation to the Australian Council of State School Organisations
11 November 2017

2. Overview of the Quality Schools package
On 23 June 2017 amendments to the Australian Education Act 2013 (the Act) passed through the Federal Parliament to give effect to the Australian Government’s Quality Schools package
Under previous school funding arrangements, a student with the same need in the same sector attracted a different amount of Commonwealth funding in each state/territory
From 2018 the Government’s growing investment in schools will be distributed according to need and tied to the implementation of evidence-based reforms proven to lift student achievement

3. Quality Schools delivers $247.2 billion over 10 years
$23.4 billion additional funding from 2018 to 2027 compared to 2016–17 Budget
This brings total funding over 10 years to $247.2 billion
Total annual funding will grow from $17.5 billion in 2017 to $30.6 billion in 2027

4. Difference in funding from 2017 ($m)
National funding effort
Over the next 10 years total recurrent Commonwealth funding for all schools nationally will be $247.2 billion
Australia ($m)
Difference in funding from 2017 ($m)
4 years
( )
6 years
( )
10 years
( )
2021
2023
2027
Government
33,572
54,695
104,035
2,623
4,150
6,403
Catholic
28,408
44,646
81,360
1,249
1,955
3,396
Independent
20,584
33,056
61,777
1,301
2,059
3,274
Non- Government
48,992
77,702
143,137
2,549
4,014
6,670
All
82,564
132,397
247,172
5,172
8,164
13,072
Over the next 10 years per student funding for all schools nationally will grow on average at 4.1 per cent each year
Annual average growth in Commonwealth per student funding, by sector (%)
Australia
4 years
( )
6 years
( )
10 years
( )
Government
6.4
6.3
5.1
Catholic
3.8
3.7
3.5
Independent
4.9
4.1
Total average

5. The Schooling Resource Standard is needs-based
The Schooling Resource Standard (SRS) provides:
a base per student amount, discounted for non-government schools by the anticipated capacity of a school community to financially contribute to the school’s operations
loadings for disadvantage (which are not discounted) , including students with disability, students from socio-educationally disadvantaged backgrounds, Aboriginal and Torres Strait Islander students and English language proficiency.
loadings for a school’s size and location
SRS Components ($)
Base SRS per student amount
Size
Location
Aboriginal and Torres Strait Islander Students
Low English proficiency
Socio-Educational Disadvantage
Students with disability
Loadings calculated as a percentage of the per student amount
Set dollar amount based on school size
Capacity to Contribute
​​

6. Changes to the SRS to better target need
Feature
Old
New
Updated base
Originally calculated in 2013
Updated using the latest data
Floating indexation
Fixed rate of 3.6 per cent
Fixed rate 3.56 per cent
From 2021, floating index (3% min)
Commonwealth share
Av. 17.0% Government schools
Av. 78.7% Catholic schools
Av. 74.2% Independent schools
Consistent share:
20% all government schools
80% all non-government schools
10 year transition
Average transition 30 years, longest 150 years
All schools will transition in 10 years
Those below within 6 years
Capacity to contribute
Generous settings for primary schools – some exceed secondary funding
Adjusted to ensure primary schools not receiving more funding than secondary
System SES scores
System weighted scores provide different funding for systemic schools than similar individual schools
Individual schools circumstances reflected in school scores and funding entitlements
Students with disability
Flat loading based on inconsistent state definitions
Three loadings scaled to need using national data

7. More students with disability will attract funding using NCCD
Proportion of students with disability reported in the top three levels of the
2016 Nationally Consistent Collection of Data on School Students with Disability (NCCD) compared to students currently funded
The funding attributed to the students with disability funding loading depends on the NCCD count, the Commonwealth share and transition arrangements
until the transition is complete, it will not be possible to directly compare the students with disability loading between schools and sectors

8. Case for change

9. Students with the same need are treated differently
Current arrangements and special deals mean students with the same need in the same sector receive different funding in different jurisdictions
Government students with the same need are treated differently across states and territories
Analysis assumes national average need for government school (2017 SRS of around $16,000) and 2017 average Commonwealth share by state

10. New arrangements mean funding according to need
In 2027 average per government student funding by state will vary only with need
In 2027 government students with same need will receive the same funding
Note: Analysis assumes national average need for government student and average Commonwealth share by state/sector

11. On average per student funding grows above costs
Average annual per student growth over 10 years, 2017 to 2027
CPI = 2.0% in 2018
Over ten years these arrangements provide an estimated $31.5 billion above CPI

12. Conditions for funding

13. Requirements on states and territories
The Commonwealth will provide 80 per cent of the SRS for non-government schools and 20 per cent for government schools by 2027
State and territory governments to deliver their share of a total public funding to reach at least 95 per cent of the SRS for all schools by 2023

14. Systems must distribute funding based on need
Commonwealth recurrent funding must be distributed under the
needs-based funding arrangements with the following principles:
the per student amount provided should reflect the recurrent resources required to support a student with minimal educational disadvantage to achieve expected educational outcomes
the per student amount for non-government schools should recognise the capacity of the school’s community to contribute financially to the school
additional funding should be provided to students and schools with additional needs to support student achievement, such as for students with disability, Aboriginal and Torres Strait Islander students, students with low socioeconomic status, students who have low English proficiency, schools based on location, schools based on size
the funding model should take account of efficiencies that can be realised while improving education outcomes
the funding model should be publicly available and transparent

15. National reforms
From 2018, s. 22 of the Act requires states and territories to sign up to a national schooling reform agreement with the Commonwealth (and bilateral implementation agreements) as a precondition of funding for both government and non-government schools in that state/territory
The Minister has written to his state and territory counterparts seeking agreement to high-level School Funding and Reform Principles as an interim agreement to allow funding to flow in 2018
The Review to Achieve Educational Excellence in Australian Schools, chaired by Mr David Gonski AC, will report in March 2018 on how funding should be invested to improve school and student performance – the Review will not look at funding quantum or distribution
The Independent Review into Regional, Rural and Remote Education, being conducted by Emeritus Professor John Halsey, will consider the key challenges and barriers that impact on regional, rural and remote students, including their transitions to, and success in, further study, training and employment
Findings of the reviews will inform the development of a new national schooling agreement in 2018
States will report annually on their progress in implementing their bilateral plans – funding is linked to satisfactory progress being made

16. Greater accountability – National School Resourcing Board
A National School Resourcing Board will provide greater independent oversight of funding arrangements
The establishment of the Board is part of a focus on greater transparency on spending and outcomes for the benefit of parents, taxpayers and students
The Minister announced the eight Board members on 1 November
The Board will review elements of the funding model under the Act and assess compliance of states and approved authorities with the requirements of the Act
A first priority of the Board is to review the socioeconomic status score methodology, which is used to estimate the capacity of a school community to contribute to the funding of a non-government school
The Board will then examine the funding loading for students with a disability and the effective use of the Nationally Consistent Collection of Data on School Students with Disability

17. Implementation for 2018

18. Timing and process
November 2017 – Education Council to consider School Funding and Reform Principles
November 2017 – payment advice provided to schools
31 December 2017 – reporting of the Independent Review into Regional, Rural and Remote Education
1 January 2018 – new funding arrangements commence
March 2018 – reporting of the Review to Achieve Educational Excellence in Australian Schools
Mid-2018 – finalise national agreement on schooling and bilateral agreements with states and territories as schedules to the national agreement

19. Consultations on implementation
The Government is consulting with states, territories and non-government authorities on:
new regulations, determinations to give effect to the new arrangements
transition adjustment assistance
measurement and monitoring of state funding effort
establishment of the new National School Resourcing Board and terms of reference for reviews
enhanced accountability and transparency
a Principles agreement as an interim arrangement for 2018

20. Priority national reforms
Some key reforms are already underway:
National review of teacher registration (led by AITSL)
School leadership framework (led by AITSL)
National Year 1 Literacy and Numeracy Check – Expert Advisory Panel report released September 2017
Formative assessments (ACARA, AITSL and ESA)

21. Other initiatives Ongoing support for parent engagement
resources (e.g. Learning Potential)
funding research to build and share evidence (e.g. $4 million to ARACY)
funding peak parent bodies
supporting the Learning for Life program
National Career Education Strategy
commitment of $3 million to improve career education for school students
the working group has identified as a priority the need to engage parents by providing quality information and resources on career education to support their discussions with their children
development through a staged approach, with an initial report scheduled to be finalised this year

22. Next steps
Next steps
National reforms will be informed by the Review to Achieve Educational Excellence in Australian Schools and the Independent Review into Regional, Rural and Remote Education
Consideration and negotiation of a new national agreement and bilateral agreement to reflect reforms and actions
Development of a new national performance framework to measure progress towards agreed outcomes
Any questions?