After years of negotiations and advocacy, every state and territory in Australia has signed the Better and Fairer Schools Agreement. This 10-year plan represents the largest federal investment in public education the country has ever seen. The agreement addresses a problem that’s been hiding in plain sight: public schools have been operating below their funding baseline while non-government schools received full or above-standard funding.
The Numbers Behind the Reform
The Australian Government will invest an estimated $16.5 billion in additional funding to public schools from 2025-26 to 2034-35. This brings the Commonwealth’s contribution from 20% to 25% of the Schooling Resource Standard (SRS) by 2034 for most jurisdictions. The funding gap was real and measurable. In 2024, public schools faced a $4.3 billion annual shortfall. Every public school was underfunded by an average of $2,509 per student. More than half of private schools received more funding per student than comparable public schools. In some cases, the gap reached $7,282 per student.
What the Schooling Resource Standard Actually Means
The SRS isn’t just a number. It’s a needs-based formula that calculates what each school requires to give students a quality education. The formula starts with a base amount: $13,570 per primary student and $17,053 per secondary student in 2026. Then it adds up to six loadings for students who need additional support. These loadings provide extra funding for students with disability; Aboriginal and Torres Strait Islander students; students from low socioeconomic backgrounds; students with low English language proficiency; schools in regional or remote locations; and small schools. This means schools serving the most disadvantaged communities receive significantly more resources per student than the baseline.
Public Schools Serve Different Student Populations
Public schools educate 66% of all Australian students. But they serve a disproportionately higher percentage of disadvantaged learners. Research shows that 29% of public schools enrol high concentrations of disadvantaged students. Compare that to 4% of Catholic schools and 6% of Independent schools. Public schools educate the vast majority of students with disability, Aboriginal and Torres Strait Islander students, and those from low socioeconomic backgrounds. Equitable funding isn’t just about fairness. It’s about addressing educational inequality where it matters most.
Closing the 4% Loophole
One significant reform removes the controversial 4% provision. This accounting mechanism previously allowed jurisdictions to count indirect expenditures like capital depreciation toward their SRS obligations. States and territories now need to replace this with actual funding for eligible expenses. The money needs to reach classrooms and students, not just balance sheets.
A Decade of Stability
The agreement runs for 10 years, from 2025 to 2034. This gives schools unprecedented stability for long-term planning. Western Australia became the first state where the public school system will reach full and fair funding at 100% of the SRS by 2026. This demonstrates what’s possible when federal and state governments align their efforts. The agreement ties funding to three priority reform areas designed to help students catch up, keep up, and finish school. This matters because public school completion rates dropped from 83% to 73% over the past eight years.
What This Means for Schools
The path to 100% SRS funding won’t happen overnight. But the trajectory is set. Schools can now plan with confidence. They know the funding will arrive. They can invest in programs, hire staff, and implement strategies that require sustained commitment. The agreement acknowledges that education funding isn’t just about dollars per student. It’s about creating conditions where every school can provide quality education regardless of which students walk through their doors. For parents, teachers, and educational professionals, this represents a fundamental shift. Public schools will finally receive the resources they need to meet the complex demands of modern education. The agreement isn’t perfect. Implementation will require ongoing attention and accountability. But for the first time in Australian education history, there’s a clear, funded path to close the gap between public and private school funding.
