Financing for equity in primary and secondary education
1. Education resources to subnational governments
2. Education resources to schools
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Based on Australia’s constitutional arrangements, the provision of school education falls under state and territory jurisdiction. State and territory governments operate and manage their public schools and govern the registration and regulation of private schools in their jurisdictions. In 2025, around 63% of school students attend public schools and 37% attend private schools.
Funding of Australia’s schools is a shared responsibility between the federal government (the Commonwealth) and the state and territory governments. Every school receives funding from both levels of government. State and territory governments provide most of the public funding for public schools. The Commonwealth provides most of the public funding for private schools.
1. Education resources to subnational governments
Schooling Resource Standard (SRS)
The Commonwealth contributes to the recurrent costs of Australian schooling through the Schooling Resource Standard (SRS) funding arrangements, which are prescribed under the Australian Education Act 2013 (the Act). In 2025, the Commonwealth contributes at least 20% of each public school’s SRS and at least 80% of each private school’s SRS. The Commonwealth’s contribution for public schools will increase to 25% of the SRS by 2034 at the latest for all jurisdictions except the Northern Territory, where the Commonwealth’s contribution will rise to 40% of the SRS to help meet the higher costs of schooling in that jurisdiction.
Funding is paid as a lump sum to each state or territory government for public schools and through state and territory governments to each private school’s governing body (including as a lump sum for governing bodies of more than one private school, which make up the majority of the private sector). For both public and private schools, Commonwealth funding must be used for the provision of school education; the Commonwealth does not specify how much should be spent on individual students, groups of students or for specific purposes or programs.
Commonwealth funding for public schools is conditional on states and territories implementing targeted reforms and meeting prescribed funding contribution levels for their public and private schools which are set out in bilateral agreements to the Better and Fairer Schools Agreements.
Each school’s SRS includes a base amount per student and up to six needs-based loadings calculated in accordance with formulas prescribed in the Act. To account for the ability of private schools to raise income through fees and other private sources (which is not available to public schools), the SRS base for most private schools is reduced. The SRS loadings are divided into two main categories: student-based and school-based.
Student-based loadings provide additional funding for several groups. Students with disability receive support based on the level of adjustment they need—classified as supplementary, substantial, or extensive—with higher funding provided for greater levels of need. Aboriginal and Torres Strait Islander (ATSI) students also attract extra funding, which increases with the proportion of ATSI students enrolled at the school. Students from socio-educationally disadvantaged backgrounds are supported through funding based on their family’s education and employment history, particularly those in the lowest two quartiles of socio-educational advantage. Additionally, students with low English language proficiency, especially those from non-English-speaking families where at least one parent has not completed education beyond Year 9, receive targeted funding to support their learning needs.
School-based loadings are designed to assist schools in regional and remote areas, where delivering education services can be more challenging. These schools receive increasing amounts of funding depending on their level of remoteness, as defined by a national classification system. Small schools also receive additional support, since they may have limited resources due to low student numbers. The amount they receive is determined by their enrolment size and location, with the smallest schools in the most remote areas receiving the highest level of funding.
2. Education resources to schools
Distribution of Commonwealth funding
Each state and territory government redistributes Commonwealth funding for their public schools using their own needs-based funding arrangement that must differ from the SRS and comply with other requirements of the Australian Education Act 2013 (the Act).
Similarly, the governing bodies for more than one private school may redistribute Commonwealth funding to their member schools using their own needs-based funding arrangement that must differ from the SRS and comply with other requirements of the Act.
State and territory school funding
The Better and Fairer Schools Agreements and associated bilateral agreements, signed by the Commonwealth and each state and territory government, require state and territory governments to spend minimum levels (expressed as percentages of the SRS) for their public and private schools on average for each year of the agreement. This funding is in addition to the Commonwealth funding provided under the Act. By 2034 at the latest, contributions for all schools will be equivalent to 100% of the SRS on average when funding from both levels of government is counted.
While all jurisdictions allocate additional resources to schools serving marginalised or disadvantaged students, many also introduce targeted measures—such as financial incentives or additional support—to attract and retain teachers in these schools.
New South Wales uses the Resource Allocation Model (RAM), introduced in 2014, to fund schools through three components: targeted funding for individual students (e.g., refugees, newly arrived, integration support), equity loadings for socio-economic, Aboriginal background, English proficiency, disability, and location, and a base school allocation for staffing, operations, professional learning, and site needs. The Priority Recruitment Support programme helps schools with teacher recruitment by providing staffing support, rural/remote incentives, rental subsidies, and retention bonuses.
Queensland funds public schools via the State Schools Resourcing Framework, which includes core appropriations (general operating costs), targeted appropriations (follow students/teachers, reimburse costs, or support specific programmes), staffing appropriations (workforce needs), and specific purpose appropriations (by application or invitation for specialised programmes). Funding formulas consider enrolment, socio-educational need, Indigenous status, location, and school size. Detailed programme info is on the Department of Education’s website. Teachers in rural and remote areas receive support through the Recognition of Rural and Remote Service Scheme (RoRRS), including service payments, allowances, subsidised housing, and travel support.
South Australia allocates funding via the Resource Entitlement Statement (RES), which includes Base Funding (through the Student-Centred Funding Model based on year level, enrolment, and school type), Targeted Funding, Student and School Characteristics Funding, and Other Allocations. Funding addresses student needs like disability, Aboriginality, English language learning, social disadvantage, plus school size and location. In addition, the Country Education Strategy supports regional and remote education by offering teachers incentives such as allowance payments, relocation assistance, retention bonuses, and extra leave.
Tasmania funds public schools through the School Resource Package (SRP), based on enrolments and educational needs. Adjustments cover targeted programmes like disability support, in-class help, trauma-impacted students, reading, and child safety. Geographic equity is addressed using Remoteness Areas classifications. The Teaching Service Award offers financial incentives including relocation support. The 2024 pilot Hard-to-Staff Schools Teacher Incentive adds targeted payments for teachers in designated hard-to-staff schools alongside the Award.
Victoria uses the Student Resource Package (SRP) with three funding components: student-based funding (for core learning and equity, based on socio-economic status, disability, location, and school size), school-based funding, and targeted initiatives funding. The Targeted Finance Incentives Programme offers relocation assistance and bonuses to attract teachers to high-need or remote areas.
Western Australia funds public schools through the Student-Centred Funding Model, which includes per student funding (based on enrolment and year level), school characteristics funding (size and location), student characteristics funding (language, Aboriginality, socio-economic status, disability), and targeted initiatives for strategic programmes and regional priorities. Since 2023, the Regional Attraction and Retention Incentive Framework has provided remote teachers with extra pay, housing, and additional leave, especially in regional or isolated areas.
3. Education resources to students and families
Within Australia’s decentralised education system, both federal and state governments implement various measures to support students from vulnerable backgrounds. Sections 3 to 5 first outline a key federal initiative, followed by selected examples from three of the largest states by population: New South Wales, Victoria, and Queensland.
Commonwealth Regional Scholarship Programme
Led by the Department of Education, the initiative aims to provide quality education to students living in areas with limited or unsuitable local school options. Launched as a seven-year pilot in 2024, the programme supports secondary students from low or low-middle income families in rural, regional, and remote areas by helping them attend boarding schools. The scholarship covers various boarding-related costs, including tuition, uniforms, elective subject fees, and other associated expenses.
Scholarships and allowances for rural students - New South Wales
The NSW Department of Education offers targeted financial assistance to students from rural and remote areas facing geographic barriers to secondary education. The Living Away from Home Allowance (LAFHA) supports families whose children must live away from home to attend school, targeting students in Years 7 to 12 who meet eligibility criteria based on geographic isolation, medical needs, family circumstances, or impassable roads. Eligibility depends on household income and distance to school. Additionally, the Boarding Scholarships for Isolated Students assist low-income, geographically isolated students in Years 7 to 12 who need to board at NSW public specialist high schools or term hostels.
Students with Disabilities Transport Programme (SDTP) – Victoria
The Students with Disabilities Transport Programme (SDTP), administered by the Victorian Department of Education, supports students with disabilities attending government specialist schools by providing free transport services. It assists eligible students who cannot travel independently due to their disability and who meet specific location and educational criteria. The SDTP operates under the Disability Discrimination Act 1992, which ensures students with disabilities have equal access to education, including essential support services like transportation.
Living Away from Home Allowances Scheme (LAFHAS) – Queensland
The Living Away from Home Allowances Scheme (LAFHAS), run by the Queensland Department of Education, provides financial support to students who must live away from home to attend school due to geographic isolation or lack of nearby options. Established under the Education (General Provisions) Act 2006, the scheme offers several allowances: the Remote Area Tuition Allowance (RATuA), Travel Allowance (RATrA), Boarding Allowance (RAA), and a Disability Supplement (RADS). These help cover tuition fees, boarding costs, and disability-related educational expenses.
4. Social policies and family support programmes
Initiated in 1969, the ABSTUDY Scheme is a federal financial assistance programme administered by the Department of Social Services (DSS) to support Aboriginal and Torres Strait Islander students facing educational disadvantages. Depending on individual circumstances, it provides financial help covering school fees, boarding, living and travel costs, and school materials. Various ABSTUDY payment categories have specific eligibility based on study level and economic background. For example, the ABSTUDY School Term Allowance supports primary students aged 14 or older and high school students under 16 who are enrolled, attending school, and have a parent or guardian receiving qualifying income support. Paid quarterly, students must have at least 85% attendance the previous term to receive a total annual amount of $540.80.
The Youth Development Scholarships - New South Wales
The Youth Development Scholarships programme was launched in 2017 by the New South Wales Department of Communities and Justice with operational support from the NSW Department of Education. The programme provides $1,000 per year in educational support to students from vulnerable housing backgrounds, including those living in public housing, Aboriginal housing, community housing, supported accommodation, or out-of-home care, as well as those receiving private rental assistance or listed on the NSW Housing Register. Eligible applicants must be enrolled in Year 10, 11, or 12 (or an equivalent programme at TAFE or via homeschooling) in New South Wales. Scholarship funds must be used for educational or wellbeing-related expenses such as uniforms, subject materials, technology, transport, tutoring, and mental health support.
Education Supports for Children in Care – Victoria
Launched in July 2024 by Victoria’s Department of Families, Fairness and Housing, the Education Supports for Children in Care (ESCC) programme aims to close the education gap for children and young people aged 5 to 18 living in kinship, foster, or residential care. Participants don’t need to be enrolled in school at application but become eligible to attend through the programme. Led by trauma-informed, VIT-registered teachers, ESCC provides up to 12 months of one-on-one tutoring focused on literacy and numeracy, tailored to each child’s learning goals to help them re-engage with school. Children with disabilities, including neurodiverse conditions like autism and ADHD, are also eligible and prioritised.
School Transport Assistance Scheme – Queensland
Led by Queensland’s Department of Transport and Main Roads, this initiative supports primary and secondary students facing distance or financial barriers to school access. Established under the Transport Operations (Passenger Transport) Act 1994, the scheme offers subsidised or fully funded transport for students living more than 3.2 km from their nearest primary school or 4.8 km from their nearest secondary school, as well as for those from low-income households, remote areas, or with disabilities. Assistance includes bus and rail travel, conveyance allowances for private transport, and tailored options for students with special needs, based on eligibility.
5. School meal programmes
Australia does not currently have a national, federally funded universal school meals programme. However, the federal government supports healthy eating in school environments by providing food and nutrition guidelines such as the Healthy School Canteens Guidelines. These guidelines classify foods and beverages based on their nutritional value and promote the provision of healthier options in school canteens. Meanwhile, school meal policies and programmes are autonomously implemented at the state and territory level.
Meals in the Eat Up Australia programme are prepared off-site by volunteers at workplaces, schools, and community groups. The programmes across NSW, VIC, QLD, WA and NT, are helping over 1100 schools and thousands of students.
The School Breakfast 4 Health programme - New South Wales
The breakfast programme was initiated by the NSW government in collaboration with Foodbank NSW & ACT to provide nutritious and healthy breakfasts to students, recognizing that children are more likely than adults to experience food insecurity. The programme operates across schools throughout NSW, including both urban and regional areas.
School Breakfast Clubs programme - Victoria
Since 2016, the Department of Education, in partnership with Foodbank Victoria, has led a programme to improve student learning outcomes by providing free, healthy food to government school students experiencing disadvantage. The initiative includes breakfasts for all participating students, as well as lunches, snacks, and take-home food packsfor those facing food insecurity. Schools can tailor the programme to their specific needs, ensuring nutritious meals are accessible during the school day or throughout the term.
In addition to meals, the programme offers cooking classes for families at 115 schools, teaching essential skills like cooking, food safety, and meal planning. Eligibility is determined using the Student Family Occupation and Education (SFOE) index to target support effectively. Starting July 2025, the state plans to invite all schools to join, expanding the programme’s reach and impact.
School and Community Food Relief programme – Queensland
Launched in July 2024, this Queensland programme, supported by the Department of Education, provides free breakfast and lunch to students in state schools to combat food insecurity and promote student wellbeing and learning. The initiative prioritises schools in communities facing high cost-of-living pressures and food insecurity. Eligible schools are chosen through an application process, with meals delivered in collaboration with community organisations and health agencies to ensure students receive nutritious support.
This profile was reviewed by the Australian Department of Education.
The Department’s review focused on factual accuracy at the Commonwealth level; however, the Australian Government does not verify information relating to state and territory policies or implementation.
