NSW public schools set to benefit from $4.8b in Commonwealth funding under new agreement between state and federal governments

NSW public schools are set to benefit from $4.8bn in funding after the state and federal governments reached a new agreement.

The Albanese government has finally sealed a schools deal with NSW, the second last state to sign on to the agreement.

NSW public schools will benefit from $4.8b in funding over the next 10 years, which could see them fully funded under a new agreement reached by the federal and state governments.

Queensland is now the only state yet to sign up to the Better and Fairer Schools Agreement, which requires states and territories to adopt new performance targets to receive Commonwealth funding.

State and territory governments have agreed to improve students’ literacy and numeracy skills, school attendance and year 12 graduation rates to receive the funding.

The agreement ensures all public schools in states and territories that sign up, receive 100 per cent of the Schooling Resource Standard (SRS) over 10 years.

It is one of the biggest investments in NSW public schools by an Australian government, seeing the Commonwealth provide an additional 5 per cent of the SRS to NSW.

The SRS estimates how much public funding a school needs to meet its educational needs, based on a recommendation from David Gonski’s 2011 review into school funding.

Prime Minister Anthony Albanese said every dollar from the Better and Fairer Schools Agreement funding will go into helping children learn. Picture NewsWire / Seb Haggett

The Commonwealth SRS contribution for NSW will go from 20 per cent to 25 per cent by 2034, following a NSW election commitment to reach 75 per cent of the SRS in 2025.

NSW will also follow other states and scrap a 4 per cent provision of indirect school costs such as capital depreciation, which will now be funded under the agreements.

It was estimated the provision cost Australian public schools about $13b over the past six years, according to advocacy group Save Our Schools.

Commonwealth funding through the agreement is tied to reforms to lift national education standards and improve student outcomes.

A NSW Bilateral Agreement will introduce reforms to help students “catch up, keep up and finish school.”

NSW Education Minister Prue Car said a teacher shortage crisis and underfunding saw 10,000 merged and cancelled classes and 3000 teacher vacancies across the state. Picture: NewsWire / Nikki Short

NSW Education Minister Prue Carr said a teacher shortage crisis and underfunding saw 10,000 merged and cancelled classes and 3000 teacher vacancies across the state.

The minister said while they had reduced teacher vacancy rates by 40 per cent and halved the number of cancelled classes, the funding would help the state restore education standards in public schools.

“This incredible outcome for public schools will allow us to deliver on the ambitious targets we have set for the public education system in NSW,” she said.

“Our commitment to rebuilding public education will now be underpinned by an agreement that delivers full funding for public schools.”

Prime Minister Anthony Albanese said investing in real reform would help Australian children get the best possible education.

“We know that education opens the doors of opportunity, and we want to widen them for every child in Australia,” he said.

NSW Premier Chris Minns said the investment was vital to lift education standards across the state by ensuring there was a qualified, dedicated teacher at the front of the classroom. Picture: NewsWire / John Appleyard

NSW Premier Chris Minns said the investment was vital to lift education standards across the state by ensuring there was a qualified, dedicated teacher at the front of the classroom.

“Public education is the best investment any government can make. Every dollar spent in this space is a dollar spent on the future of our country,” he said.

“Every single child in Australia has the right to a quality, free public education and we are proud to work with the Albanese Labor government to ensure NSW schools are fully funded.”

Education Minister Jason Clare said the agreement would help more than 780,000 children in more than 2200 public school.

“It’s not a blank cheque. I want this money to get results,” he said.

The agreement with NSW follows agreements with Western Australia, the Northern Territory, Tasmania, the ACT, South Australia and Victoria.

Queensland is yet to sign up to the agreement.