Senate Inquiry into Direct Measure of Income Funding

On 27 February 2020 the Senate referred the provisions of the Australian Education Amendment (Direct Measure of Income) Bill 2020 to the Education and Employment Legislation Committee for inquiry and report by 1 May 2020.

The Bill makes the necessary changes to the Australian Education Act 2013 to allow the use of the Direct Measure of Income (DMI) methodology to calculate the capacity to contribute (CTC) scores for a non-government school.

Responses to the data collection of CSA member schools indicates that in most cases there is a significant positive impact for schools by the use of the DMI measure.  This reflects the long held, but difficult to quantify, view that Christian schools enrolled the less affluent  parents from a given geographical area.

Nonetheless there are a small number of schools who will suffer a reduction in funding and as results of the change to the DMI approach.  Despite the purported support provided through the Choice and Affordability Fund we will be asking the Government to extend the transition period to the DMI methodology for those schools adversely affected.  Our view is that this change should be phased in to apply fully in 2029 in the same manner as applies to other schools suffering a reduction in funding.

The closing date for submissions is 25 March 2020

UPDATE On 4 March, the committee agreed to table its report on the provisions of the bill on 23 March 2020 and to amend the submission deadline. Submissions are now due by 12 March 2020.

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