Australian Parents Council
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CLAREMONT TAS 7011
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School funding news

The Australian Government's proposed new direct measure of parents' capacity to contribute towards the cost of their child's schooling at non-government schools, is expected to be more accurate.

The new direct measure uses parent income tax data instead of the school's location. It is due to be rolled out from this year but requires an amendment to the Australian Education Act first.

The impact on independent schools is estimated to be:

  • 810 will have their annual recurrent funding increased by 2.5 per cent or more
  • 133 schools will experience little or no change 
  • 59 schools will lose funding.

The Catholic sector estimates about three-quarters of its schools will be better off or see no change.

The National Catholic Education Commission Executive director Jacinta Collins said: 'The new DMI will provide a more accurate and meaningful measure by using the median income of parents and carers at the school to determine the base funding level per student.'

But the Coalition for Regional Independent Schools said the majority of established regional independent schools will each be stripped of more than a million dollars a year on average under the new model.

Chair Stephen Higgs, said: 'This flawed methodology will hurt many parents, students and families. We support a means-based funding scheme, but the proposed application of this new model fails the fundamental tests of fairness and transparency on which it was supposed to be based.'

Following the outcry from regional schools, the government has announced a further inquiry, which was supported by the National Catholic Education Committee.

Schools will be given until 2029 to fully transition to the new model. Those getting less government support, will get a share in a $1.3 billion 'choice and affordability fund'.

Education Minister Dan Tehan said the government, in consultation with the school systems, had announced additional assistance 'to ensure the smoothest transition to the new measure.'

But the fund and guidelines on how it is used have attracted criticism.

Labor's education spokeswoman Tanya Plibersek said: 'The guidelines do not explain what each school will get — I think that’s what parents want to know. The government should release these details as soon as possible.'

Pete Goss of The Grattan Institute said the new model was 'better' but a clause allowing school systems to invest the transition money was 'the opposite of how transition funding normally works'.

'The fact that schools and sectors can bank some of this money for a rainy day undercuts the argument that it's genuine transition funding,' Dr Goss said.