In a fast-moving election campaign, Prime Minister Julia Gillard has given the undertaking sought by CSA and others that indexation will continue for non-government schools.

Ms Gillard said that "current funding arrangements will be kept in place for the entire term of the next parliament."

This removes, for the time being, uncertainty surrounding school funding pending the outcomes of the Review of Funding initiated by the government this year, effectively extending the current system for 12 months. 

Announcing the review earlier this year, Ms Gillard (as Education Minister) promised that "no school would lose a dollar." This however left open the question of whether funds would continue to be indexed against inflation. Until today the Government had specifically declined to give such a commitment.

While the announcement is certainly welcome, allowing schools to continue forward planning with a degree of certainty, the nature of a future funding system (beyond the next parliament), remains an open policy debate.

CSA has sought commitments from both major parties to the principles they would apply to future funding arrangements, and we will continue to keep members informed.

A commitment to indexation has previously been given by the Coalition. 

Link: Joint press release, Julia Gillard and Simon Crean (external site)

Related:

 Pre-election letter to Minister Crean

 Pre-election letter to Christopher Pyne, Shadow Minister