The Albanese Government has passed legislation to fundamentally change how public schools are funded in Australia, addressing a long-standing imbalance in the education system. The Better and Fairer Schools (Funding and Reform) Bill 2024 removes the previous 20% funding ceiling that limited Commonwealth contributions to public schools, turning it into a funding floor. This enables the federal government to increase its share to 25% (and 40% for the Northern Territory), working with states to ensure public schools finally reach the full Schooling Resource Standard (SRS) recommended by the Gonski review in 2012. South Australia, Victoria, Western Australia, Tasmania, the Northern Territory, and the ACT have already signed on to the agreement.

This increased funding is tied to specific reforms aimed at improving student outcomes, particularly addressing the decline in high school completion rates (from 83% to 73% over eight years). The agreement requires states to implement phonics and numeracy checks in early primary school, improve student mental health support, and focus on teacher and school leader wellbeing. Additionally, states can no longer count non-classroom costs like capital depreciation toward their funding contribution, ensuring every dollar goes directly to student learning. The 10-year agreement also increases transparency through annual ministerial reporting to Parliament on education reform progress.

• Represents the largest additional investment in public education in Australian history

• Transforms the 20% Commonwealth funding cap into a floor, enabling increases to 25%

• Ends accounting loopholes that allowed states to claim non-classroom costs as education spending

• Ties funding to practical reforms to help students "catch up, keep up, and finish school"

• Locks in funding so it cannot go backwards in future budgets

  
  

Update: it's complete!

NSW and Queensland Join Historic Schools Funding Agreement

All states now committed to full education funding

The Albanese Labor Government has secured the commitment of all Australian states and territories to the Better and Fairer Schools Agreement, with Queensland becoming the final signatory in March 2025. This historic agreement increases Commonwealth funding to 25% of the Schooling Resource Standard, ensuring all public schools reach 100% of recommended funding. Queensland will receive an additional $2.8 billion over the decade, while New South Wales signed on earlier in March.

Premier David Crisafulli highlighted Queensland's unique educational challenges as a decentralised state with many rural, regional and Indigenous schools. He described the agreement as "the biggest investment in schools in our nation's history" and an opportunity to address longstanding funding shortfalls. Prime Minister Albanese confirmed this completes the $16.5 billion national funding package to support Australia's 2.6 million public school students.

Key reforms include:

• Evidence-based teaching practices and individualised support

• Year 1 phonics and early numeracy checks

• Enhanced mental health support

• Teacher retention initiatives

[1] https://www.abc.net.au/news/2025-03-24/education-queensland-funding-better-fairer-schools-agreement/105087440

[2] https://ministers.education.gov.au/clare/building-better-and-fairer-education-system-support-stronger-economy

[3] https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/bd/bd2425/25bd025

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[1] https://www.abc.net.au/news/2025-01-24/albanese-school-funding-announcement-gonski-review/104855794

[2] https://theconversation.com/australian-schools-could-get-an-extra-16-billion-but-only-if-states-reach-a-deal-with-jason-clare-by-the-end-of-september-238194

[3] https://ministers.education.gov.au/clare/albanese-government-introduces-legislation-increase-funding-public-schools

[4] https://ministers.education.gov.au/clare/legislation-increase-funding-public-schools-passes-parliament

[5] https://jasonclare.com.au/media/portfolio-media-releases/albanese-government-introduces-legislation-to-increase-funding-for-public-schools/