Fed snub in Gonski commitment

NSW has refused to bow to pressure from the federal Coalition, setting its commitment to Labor's Gonski reforms in the budget.

THE NSW Coalition government has refused to bow to pressure from its federal counterparts, setting its commitment to Labor's Gonski reforms in the budget and paying for the model by delaying reform of inefficient taxes affecting small business and raising fees for TAFE.

State Treasurer Mike Baird delivered a subtle riposte to criticism from Tony Abbott's federal opposition that the NSW government had been "conned".

"We will always co-operate with the federal government to produce better outcomes for our students," Mr Baird said.

"Under the National Education Reform Agreement, the commonwealth will provide an additional $3.3 billion to support the reforms."

Long-promised reform of Intergovernmental Agreement taxes, which include stamp duties on business mortgages and non-property assets -- broadly considered an inefficient tax on small business -- and a borrowed idea from federal Labor to help schools by hitting other education sectors will provide more than half the remaining $1.76bn over six years.

The Independent Pricing and Regulatory Tribunal is assessing fees and subsidies that currently apply in the vocational training and TAFE sector with a view to charging more for courses.

The government will also introduce a 1 per cent efficiency dividend in 2015-16 which will raise an estimated $750m in that financial year and the next.

The National Education Reform Agreement funding begins this year for NSW with $26m provided by NSW and $50m provided by the federal government.

That increases to a combined $230m in a similar ratio in 2014-15.

As the new funding becomes available, National Partnership money previously provided by Labor under time-limited schemes is due to expire in January.

The $40m set aside last financial year for the digital education revolution ends and about $80m for low socioeconomic and literacy and numeracy schemes is provided for the first half of 2013-14 before tapering out.

The total education budget grew by about $500m to $13.95bn in 2013-14.

"The reforms currently underway in NSW are already consistent with the direction of the Gonski report," Education Minister Adrian Piccoli said.

"The additional $5bn for NSW schools during 2014 to 2019 will deepen and accelerate the education reform agenda in NSW, for the sole purpose of improving student results in schools.

"Today's budget is the beginning of a fairer distribution of resources for schools and students, with further money flowing in the later years of the agreement."

Australian Education Union federal president Angelo Gavrielatos said the budget was confirmation of the NSW government's commitment to Gonski, "notwithstanding the spoiling tactics by their federal Coalition colleagues".

Victoria, Western Australia, Queensland and the Northern Territory have refused to sign up to the proposed deal and Julia Gillard offered West Australian Premier Colin Barnett an extra $600m in funding last week.

The federal opposition's spokesman on education, Christopher Pyne, told The Australian that he was willing to work with NSW if the federal Coalition won in September.