Commonwealth Funding Update 2020

All Christian schools should have received advice from the Department of Education, Skills and Employment regarding their estimated per student recurrent funding amounts for your school for 2020.

As schools would be aware, the Australian Government’s response to the National School Resourcing Board’s Review of the socio-economic status (SES) score includes the development of a new methodology for calculating a school’s capacity to contribute (CTC) score.  This new  score is based on a direct measure of income (DMI) methodology for your school’s parent body.

The new DMI methodology will be used for all non-government schools by 2022 to calculate a CTC score. 

In 2020 and 2021 there are three scenarios to determine the applicable CTC score being used, determined by which is most financially beneficial to the school:

  • the new DMI methodology
  • the current CTC score method, based on the SES score methodology using 2011 Census data, or
  •  the current CTC score method, moving to an updated SES score using 2016 Census data.

Schools will transition from their recurrent funding levels under the current 2011 SES methodology arrangements to their funding levels under the new direct income measure arrangements either:

  • Schools funded at less than the Commonwealth target share of 80 per cent of the Schooling Resource Standard (SRS) calculated using their DMI methodology CTC score will transition by 2023.
  • Schools funded at more than the Commonwealth target share of 80 per cent will transition by 2029. This is designed to help schools plan and avoid any sudden changes in funding entitlements. This may mean a school’s Commonwealth share will be reset over 2020 to 2022.

It is important to note that the advice from the Department is based on the latest school enrolments, characteristics and CTC scores held by them.  Actual funding each year will be calculated based on the actual enrolments, characteristics and CTC score for the year as well as the legislation that is in effect.

The Department has produced a range of factsheets to try and explain the changes.  These can be downloaded from the Department’s website here.