New NSW school funding deal aims to improve student outcomes

It’s clear that Australian public schools are underfunded, with studies showing that Australian students are falling behind. A new joint state and federal government funding initiative aims to change that.

NSW has become the latest state to sign a 10 year schools agreement with the Federal government in exchange for $4.8 billion of funding.
All states and territories except Queensland have now reached an agreement with the federal government to boost funding to public schools under what the Federal Government has described as the Better & Fairer Schools Agreement.

What’s included in the deal?

Under the new deal, the federal government will now pay 25% of the total public school bill. This is an increase from 20% under the previous arrangement.

The Albanese government went to the last election with an aspiration for public schools to be funded to the minimum levels that were recommended as part of the Gonski review 13 years ago. Private schools reached that level of funding seven years ago and 40 per cent are funded above these levels.

“This is the biggest new investment in New South Wales public schools by an Australian government ever.” Said Federal Education minister Jason Clare.

Mr Clare also highlighted the impact that a good public education can have on students and families.

“As a kid from Cabramatta who went to public schools, and who has kids now in public schools—or about to go to public schools—I know what this is going to do.”

What does the new funding mean?

As part of the agreement, states and territories must commit to education reforms to receive the additional funding. These include measures to improve student learning outcomes and improve teacher recruitment and retention.

“Over the 10 years of this agreement, this money will be going to really important things like year one phonics, early years numeracy checks, really investing in evidence-based teaching, small-group tutoring, high-quality professional learning for teachers,” said NSW Education Minister Prue Car.

The new funding also ensures that children falling behind in primary school will receive individualised support to help them catch up
The opposition has pledged to match the government’s school funding commitments. However, they argue that school funding agreements between the federal and state governments should be made public.

Are there any drawbacks?

Experts argue that the new funding is not without its challenges. These include:

• It will have limited immediate impact: Critics argue while the extra funding is good news, the effects will not be felt for a long time, with the extra funding to gradually kick in between 2026 and 2034. As a result, many students who are currently at school will not see the benefits of the extra funding.
• The positive future impact of reforms is unknown: Advocates argue it is unknown whether the reforms will have the effect the government claims. They caution that promises for reform to the school system have been made before, to little effect. The previous agreement, the National School Reform Agreement pledged to improve academic results and school attendance rates for disadvantaged students. However, little progress has been made in this area. Experts say it is critical these promises are kept, even as the political cycle moves on.

Despite concerns, the government’s increased support for public schools is a positive step.

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Article References

De Marchi, B (4 March 2025) ‘NSW has finally struck a school funding deal. What does this mean for schools and students?’, The Conversation, accessed 11 March 2025.

Duffy, C (3 March 2025) ‘New South Wales public schools to get $5b boost in latest deal to end funding wars’, ABC News, accessed 11 March 2025.