Here you can find information about the Schooling Resource Standard’s Capacity to Contribute.
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What is capacity to contribute?
Capacity to contribute (CTC) is part of the Schooling Resource Standard (SRS) school funding arrangements. CTC is a measure of a non-government school community’s capacity to contribute to the ongoing costs of running their school, relative to the capacity at other non-government schools. It is based on recommendations made in the 2011 Review of Funding for Schooling led by Mr David Gonski AC.
Most non-government schools also receive private income through fees and other private contributions. The capacity to raise private income varies significantly from school-to-school.
The Department calculates CTC scores for eligible non-government schools each year. A school’s CTC score determines the discount the Commonwealth applies to funding the school. This percentage is applied to the SRS base funding amount only. CTC does not impact other loadings under the SRS for student priority cohorts and disadvantaged schools. CTC percentages are set out at subsection 54(3) of the Australian Education Act 2013 (the Act). They range from 10% for schools with the lowest capacity to contribute to 80% for schools with the highest capacity to contribute.
Which schools does CTC apply to?
CTC applies to most eligible non-government schools. It does not apply to non-government special schools, special assistance schools, Majority Aboriginal and Torres Strait Islander schools, and sole-provider schools. CTC also does not apply to government schools.
How are CTC scores calculated?
The Department of Education calculates CTC scores in accordance with section 52 of the Act and Division 2 of the Australian Education Regulation 2013 (the Regulation).
The Regulation requires all CTC scores to be calculated using the DMI methodology. If the DMI methodology cannot be used for a reason specified in the Regulation, a refined-area-based (RAB) score must be used.
For small and very small schools, the Regulation requires the annual change in CTC scores to be capped at two points from the previous year.
What is the Direct Measure of Income (DMI)?
The DMI is based on the median family income of students at the school for that year. This is calculated by linking their parent(s) or guardian(s) names and address(es) with their personal income taxation data. This is done using the Australian Bureau of Statistics (ABS) Multi Agency Data Integration Project (MADIP). The median family income is then transformed into an annual DMI score.
The CTC score that applies to funding for a school is the average of the DMI scores for the school for the previous three years. More information about how a DMI score is calculated can be found on the DMI methodology fact sheet.
What is a Refined Area Based (RAB) score?
A RAB score is used as a school’s CTC score when a DMI based score cannot be used.
A school’s RAB score is calculated based on income data from the areas where the parents and guardians of students at a school live. The data used to calculate a RAB score comes from the Student Residential Address and Other Information Collection, which is completed by approved school authorities each year, and the 2021 ABS Census of Population and Housing. The method for calculating a RAB score is set out in subsection 23(2) of the Regulation.
When are CTC scores calculated?
The Department calculates CTC scores for eligible non-government schools each year. Generally, a CTC score for a year will be available for schools from November of the previous year. The approved authority of a school will receive a notification once the Department publishes CTC scores.
Published CTC scores for previous years are available below:
Can CTC scores be reviewed?
There are two ways an approved authority can request a review of its school’s CTC score.
CTC score review under subsection 53(2) of the Act
If an approved authority believes its CTC score is not accurate, it can apply for a CTC score review at any time under subsection 53(2) of the Act. Information about a subsection 53(2) CTC score review is available at CTC score reviews.
The Minister for Education (or their Delegate) can also review a school’s CTC score at any time.
A decision by the Minister’s delegate to determine a CTC score for a school is a reviewable decision under the Act. This means an approved authority for a school can request an internal review of the decision within a specified time of the decision being made (usually 30 days). The Department includes information about internal reviews to approved authorities when it provides schools’ CTC scores each year.
If an approved authority is not satisfied with the outcome of an internal review, it can apply to the Administrative Appeals Tribunal (AAT) to seek an external review of that decision.