The Schooling Resource Standard (SRS) is an estimate of how much total public funding a school needs to meet its students’ educational needs, and is based on recommendations from the 2011 Review of Funding for Schooling, led by Mr David Gonski AC.
The SRS is made up of a base amount for all primary and secondary students and up to six needs-based loadings for student priority cohorts and disadvantaged schools.
By 2029, all schools will be funded on a consistent share of the Commonwealth SRS. In line with states having full constitutional responsibility for schooling, the Commonwealth is moving towards:
- consistently funding at least 20 per cent of the total SRS for government schools, reflecting the Commonwealth’s role as the minority public funder of this sector
- consistently funding at least 80 per cent of the total SRS for non-government schools, reflecting the Commonwealth’s role as the majority public funder of the sector.
Schools currently funded below their target Commonwealth share of the SRS will transition to the target by 2023. Schools that are currently funded above their target Commonwealth share will transition to it by 2029 at the latest.
Alongside the Commonwealth’s increased investment, state and territory governments are also required to deliver their share of total public funding. Further information about state funding contribution requirements is available at: How are schools funded in Australia?
Base amount provides funding for every student
The base amount is calculated using the SRS funding amounts and a capacity to contribute discount for most non-government schools. It is estimated that the base amount accounts for 75.9 per cent of Commonwealth recurrent school funding expenditure in 2020.
The SRS funding amounts were calculated by analysing funding levels in schools (known as 'reference schools') including where at least 80 per cent of students had achieved above the national minimum standard in NAPLAN for reading and numeracy for three years in a row. The SRS funding amounts are indexed each year to keep in line with or surpass any increases to wages and consumer prices.
The SRS funding amounts in 2020 are $11,747 for primary students and $14,761 for secondary students.
For most non‑government schools, calculation of the base amount includes a reduction for the anticipated capacity of the school community to financially contribute to the school's operating costs.
This is called the 'capacity to contribute' (CTC) assessment. 'Capacity to contribute' does not apply to government schools, non‑government special schools or special assistance schools, non‑government majority Aboriginal and Torres Strait Islander schools, or non‑government sole‑provider schools. It also does not apply to distance education students, who attract 45 per cent of the SRS funding amount to their school’s base amount. There is no CTC discount applied to any of the six loadings. The higher the school's SES score, the more the base amount is discounted, up to a cap of 80 per cent of the base amount.
Current arrangements for calculating CTC use an area-based socio‑economic status (SES) score measure, which was the best available data when implemented in 2001. A 2018 review by the National School Resourcing Board (review of the socio-economic status (SES) score methodology) found that recent innovations mean that a better measure of a school community's capacity to contribute based on the income of parents and guardians is now available.
From 2020 the Government will introduce this new method for calculating a school community’s CTC based on a Direct Measure of Income of parents and guardians of students at a school. This more accurate approach will ensure more funding flows to the schools that need it the most.
The Government has put in place arrangements to support the gradual introduction of change to provide schools time to plan. Over 2020 to 2021 schools will receive the financial benefit of the 2011 Census SES score, 2016 Census SES score or the DMI. The new direct measure will apply to all schools by 2022. The department will advise approved authorities of whether a school would financially benefit from the use of DMI arrangements in 2020. This, and other arrangements will provide schools with time to plan as change is gradually introduced over time.
Loadings provide extra funding for student priority cohorts and disadvantaged schools
Up to four student loadings and two school-based loadings, make up the total loading amount used to calculate a school’s SRS. Loadings were developed by looking at how much funding in addition to the base amount was required to help students in priority cohorts achieve their full potential.
The four student loadings are the student with disability loading, Aboriginal and Torres Strait Islander loading, socio-educational disadvantage loading and the low English proficiency loading. The school-based loadings are for school size and school location.
All loadings are affected by indexation at or above wage and consumer prices each year. With the exception of the school size loading, loadings are calculated with reference to the SRS funding amount and so are not affected by the CTC reduction.
Student with disability loading
This loading provides extra funding on top of the base amount for each student with disability.
The loading is based on the Nationally Consistent Collection of Data on School Students with Disability (NCCD), which collects information on students with disability by the level of additional support they are provided to access and participate in learning. Under the NCCD, the school team uses their professional, evidence‑based judgement to capture information on the level of additional support a student is provided in the classroom.
Students with disability who are counted in the top three levels of the NCCD (extensive, substantial and supplementary) attract additional funding through the student with disability loading. The amount of the loading reflects the level of support they need to participate fully in school, with higher funding for those who need higher levels of support.
The NCCD captures a fourth level of support defined as 'support provided within quality differentiated teaching practice'. This comprises support provided within the classroom as part of standard teaching practice which is responsive to the needs of all students and delivered without the need for additional funding.
It is estimated the student with disability loading accounts for 9.2 per cent of Commonwealth recurrent school funding expenditure in 2020. The student with disability loading is estimated to grow, on average, by 5.5 per cent per year over 2018 to 2029.
Low English language proficiency loading
This loading provides extra funding on top of the base amount for students from a language background other than English where at least one parent has completed school education only to Year 9 (or equivalent) or below. This may include recently settled migrants and refugees. The loading is 10 per cent of the SRS funding amount.
It is estimated the low English language proficiency loading accounts for 0.3 per cent of Commonwealth recurrent school funding expenditure in 2020.
The low English language proficiency loading is estimated to grow, on average, by 6.3 per cent per year over 2018 to 2029.
Aboriginal and Torres Strait Islander student loading
This loading provides extra funding on top of the base amount for each Aboriginal and Torres Strait Islander student. The amount of extra funding for each student depends on the proportion of Indigenous students in the school. If there is a single Indigenous student in the school, the loading is 20 per cent of the SRS funding amount. If 100 per cent of the students in the school are Indigenous students, the loading is 120 per cent of the SRS funding amount.
It is estimated the Aboriginal and Torres Strait Islander student loading accounts for 1.7 per cent of Commonwealth recurrent school funding expenditure in 2020.
The Aboriginal and Torres Strait Islander student loading is estimated to grow, on average, by 5.1 per cent per year over 2018 to 2029.
Socio‑educational disadvantage loading
This loading provides extra funding on top of the base amount for each student from a socio‑educationally disadvantaged background.
The loading amount is based on the percentage of students in the lowest two quartiles of socio‑educational advantage (SEA) developed by the Australian Curriculum, Assessment and Reporting Authority. The SEA measures the occupational and educational status of students' parents by looking at factors like occupation, completed school education and highest level of post‑school education.
The greater the percentage of a school's students in each of the bottom two quartiles of the SEA, the higher the loading, up to a maximum of 50 per cent of the SRS funding amount for Quartile 1 and 37.5 per cent for Quartile 2.
It is estimated the socio‑educational disadvantage loading (previously known as the low socio‑economic status loading) accounts for 9.3 per cent of Commonwealth recurrent school funding expenditure in 2020.
The socio‑educational disadvantage loading is estimated to grow, on average, by 5.3 per cent per year over 2018 to 2029.
Note: The calculation of the socio‑educational disadvantage loading is unrelated to the methodology used to determine a non‑government school's SES score for the 'capacity to contribute' assessment referenced on the first page of this factsheet.
School location loading
This loading provides extra funding for schools in regional and remote locations in recognition that it generally costs more to educate students in regional and remote schools than it does for students in city‑based schools. The loading is based on a school’s Accessibility/Remoteness Index of Australia (ARIA) score, a measure of the remoteness or accessibility of every location in Australia, as a percentage the SRS funding amount and the school's size loading.
It is estimated the location loading accounts for 2.1 per cent of Commonwealth recurrent school funding expenditure in 2020.
The school location loading for regional and remote schools is estimated to grow, on average, by 4.6 per cent per year over 2018 to 2029.
School size loading
This loading provides extra funding for medium, small and very small schools in recognition that they cannot achieve the same efficiencies of scale as a large school. This is the only loading that is calculated as a set dollar amount (rather than proportion of the SRS funding amount).
Primary schools with up to 300 students and secondary schools with up to 700 students attract a size loading. The size loading is scaled:
- primary schools with between 15 and 200 students attract the maximum loading of $185,245 in 2020
- secondary schools with between 100 and 500 students attract the maximum loading of $296,392 in 2020.
It is estimated the school size loading accounts for 1.6 per cent of Commonwealth recurrent school funding expenditure in 2020.
The school size loading is estimated to grow, on average, by 3.8 per cent per year over 2018 to 2029.
Further information about the funding formula for schools can be found at Part 3, Division 2 of the Australian Education Act 2013.