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School Funding Update

In light of the lack of finalisation of the Parental Income Test – Direct Income Measure of Capacity to Contribute, schools in 2020 are expected to be paid the best of either their 2011, 2016 or DIM SES.

Initially, all schools will be paid according to their 2011 SES, with any catch-up payments to be paid later in the year if the 2016 SES or DIM is instead found to be more advantageous for the school.

The Choice and Affordability Fund is expected to commence in July 2020, but there is no finalisation of the breakdown of funds between the states. Local AISs will likely use these funds to prioritise helping schools if they are transitioning down, as well as for programs.

Drought-affected areas are likely also to be a priority. This may offset the expected risk of disadvantage to regional schools from moving from the current SES to the DIM score and as it is likely that it will reveal a higher capacity to pay when data is gathered from the front door of a student and not the just surrounding area. This is still being worked out and there may be concessions available.

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