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

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

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

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 (2018-21) 6 years (2018-23) 10 years (2018-27) 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 (2017-21) 6 years (2017-23) 10 years (2017-27) Government 6.4 6.3 5.1 Catholic 3.8 3.7 3.5 Independent 4.9 4.1 Total average

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 ​​

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 2018-2020 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

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

Case for change

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

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

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

Conditions for funding

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

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

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

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

Implementation for 2018

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

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

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)

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

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?