Funding floor still too low
Critics said the bill's 20 per cent Commonwealth funding floor for government schools was too low and should be lifted to 25 per cent, warning the bill could still leave public schools short of full funding.
This bill became law on Nov 29th, 2024.
Education & skills
States and territories can get federal school funding from 2025 even if not every jurisdiction has signed on, as long as the agreement is open to any state or territory and is about school reform.
Most jurisdictions were still below full school funding, and the old law locked in transitional funding rules that could not reflect each state and territory’s agreed path to 100 per cent of the schooling standard. The bill lets federal funding shares be set differently by jurisdiction, locks in a funding floor, and requires yearly public progress updates to Parliament.
By late 2024, most jurisdictions were still short of full school funding and the Australian Education Act's transitional settings kept the Commonwealth shareThe share of school funding paid by the federal government under the Act and the agreements discussed on this page. for government schools tied to a national cap rather than each state or territory's negotiated path. The bill responded by turning 20 per cent into a funding floor, allowing different federal shares through school reform agreements from 2025, and after Parliament passed it those higher, jurisdiction-specific deals could proceed without waiting for every jurisdiction to sign at once.
The main criticism was that the bill improves school funding but still does not guarantee full and fair funding, because the Commonwealth floor stays at 20 per cent and some schools may remain underfunded for years. That case was raised mainly by Greens, crossbench and teal independents, while the Coalition still supported the bill but pressed for faster state deals and stronger reform conditions.
Hon Jason Clare MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 29 Nov 2024
Final passage
Passed without a counted vote
4 recorded amendment or procedural votes were found, but no counted vote on the bill itself was recorded.
Passage speed
50 days
From introduction to the latest recorded parliamentary step
Meaning
States and territories can get federal school funding from 2025 even if not every jurisdiction has signed on, as long as the agreement is open to any state or territory and is about school reform.
The ActThe main law being amended so the new school funding rules and reporting duties can operate. turns the federal share for government schools into a floor, so it cannot drop below 20 per cent, or below 40 per cent in the Northern Territory from 2029.
Federal funding rates for government schools can now be set differently in different states and territories, allowing each jurisdiction to have its own path to higher funding.
The Northern Territory will be expected to cover 60 per cent of the funding standard for government schools from 2029, unless a school reform agreement sets a different share.
The federal Education Minister must give Parliament a yearly update on progress under current or proposed school reform funding agreements, with the first update due before 1 January 2027.
The Bill clarifies what constitutes a ‘national agreement’ and the requirements that are to be met for funding to be provided. This clarifies that a jurisdiction is not dependent on the commitment of all other jurisdictions in order to be entitled to its funding, providing greater funding certainty. This promotes the right to education.Better and Fairer Schools (Funding and Reform) explanatory memorandum
The Commonwealth’s investment in a better and fairer education system, as set out in this Act, provides a pathway to full and fair funding for Australian schools. It embeds a Commonwealth funding floor for government schools in all States and the Australian Capital Territory, by specifying that the Commonwealth share for such schools must be a minimum of 20 per cent; and it enables the Commonwealth to increase this funding share where there is an agreement in place to do so. Further, the Act embeds a Commonwealth funding floor of a minimum Commonwealth share of 40 per cent for government schools in the Northern Territory from 2029. This floor applies certainty and surety to the Commonwealth’s investment in government schools. It establishes a mechanism to protect the funding shares for government schools in Australia to make sure that Commonwealth funding shares cannot go backwards.Better and Fairer Schools (Funding and Reform) as-passed bill text
(3) Without limiting the regulations that may be made for the purposes of subsection (1), those regulations may prescribe different Commonwealth shares (or different methods for working out Commonwealth shares) for government schools located in different States or Territories.Better and Fairer Schools (Funding and Reform) as-passed bill text
(4A) However, despite subsection (4), unless the Northern Territory’s school education reform agreement specifies otherwise, the State‑Territory share for the Northern Territory for 2029 or a later year is:Better and Fairer Schools (Funding and Reform) as-passed bill text
The first statement prepared by the Minister under section 127A of the Australian Education Act 2013, as inserted by this Schedule, must be completed before 1 January 2027.Better and Fairer Schools (Funding and Reform) as-passed bill text
Context
By late 2024, most jurisdictions were still short of full school funding and the Australian Education Act's transitional settings kept the Commonwealth shareThe share of school funding paid by the federal government under the Act and the agreements discussed on this page. for government schools tied to a national cap rather than each state or territory's negotiated path. The bill responded by turning 20 per cent into a funding floor, allowing different federal shares through school reform agreements from 2025, and after Parliament passed it those higher, jurisdiction-specific deals could proceed without waiting for every jurisdiction to sign at once.
Most jurisdictions were still below full school funding
When the bill was introduced, the government said existing law left most jurisdictions short of the schooling resource standardThe funding benchmark used on this page to show the level of public money schools are meant to reach. and locked in transitional rules that could not reflect each jurisdiction's agreed path to full funding.
Hansard ↗Government introduces a bill to lift and protect public school funding
The minister introduced legislation to let Commonwealth funding shares for government schools rise above the old 20 per cent ceiling and to make that 20 per cent a floor instead.
Hansard ↗Parliament passes the bill
Both houses passed the bill, clearing the way for different states and territories to have separate Commonwealth funding rates under school reform agreements.
Parliamentary timeline ↗Royal AssentThe final step that turns the bill into an Act of Parliament. makes the new funding rules law
Royal AssentThe final step that turns the bill into an Act of Parliament. turned the bill into an Act, locking in the federal funding floor and enabling the new agreement structure to operate.
Parliamentary timeline ↗Jurisdiction-specific school reform funding agreements can begin
From 2025, states and territories can receive federal school funding under an open school reform agreement even if not every jurisdiction has signed on at the same time.
User-provided bill summary ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
Referred to Committee (10/10/2024): Senate Education and Employment Legislation Committee; Committee report (18/11/2024)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns the bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that the bill improves school funding but still does not guarantee full and fair funding, because the Commonwealth floor stays at 20 per cent and some schools may remain underfunded for years. That case was raised mainly by Greens, crossbench and teal independents, while the Coalition still supported the bill but pressed for faster state deals and stronger reform conditions.
Criticism was mostly about the bill not going far enough, not about rejecting its core goal.
Funding floor still too low
Critics said the bill's 20 per cent Commonwealth funding floor for government schools was too low and should be lifted to 25 per cent, warning the bill could still leave public schools short of full funding.
Weak accountability and slow delivery
Some supporters argued the bill relies too heavily on future agreements, with weak enforcement, limited transparency about how money will be spent, and timelines that could delay full funding and reforms until late in the decade.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Defeated 13 to 41. Support came from Greens and minor parties and independents. Opposition came from Labor, Centre Alliance, and Nationals. Minor-party and independent votes were split.
The amendment was defeated, so it did not change the bill’s text; the House then agreed to the original second-reading question and moved the bill forward.
Senate
Defeated 13 to 22. Support came from Greens and Australia's Voice. Opposition came from Labor, Liberal Party, UAP, and minor parties and independents. Minor-party and independent votes were split.
The request was defeated, so the bill kept the lower Commonwealth shareThe share of school funding paid by the federal government under the Act and the agreements discussed on this page. and the government’s funding path remained unchanged.
Defeated 13 to 23. Support came from Greens and Australia's Voice. Opposition came from Labor, Liberal Party, UAP, and minor parties and independents. Minor-party and independent votes were split.
The request was defeated, so the smaller funding increase was not adopted and the bill stayed with the government’s original settings.
Defeated 12 to 22. Support came from Greens and Australia's Voice. Opposition came from Labor, Liberal Party, UAP, and minor parties and independents.
The amendment was defeated, so the bill’s funding calculation rules were left unchanged.
Senator Allman-Payne's proposal would have required a yearly Senate committee inquiry into school disadvantage and an early report on the first inquiry by 1 January 2027.
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senator Allman-Payne’s sheet 3039 proposal was defeated on voices; it would have required ACARA, or another minister-directed person, to prepare and table an annual report on school disadvantage and related data.
Defeated on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
Jason Clare strongly supports the bill, saying it will lift Commonwealth funding for public schools by turning the current funding cap into a floor and locking in higher deals with the states and territories.
Read in Hansard ↗Matt O'Sullivan says the bill falls short because it boosts funding without the accountability and reform he says schools need, and he argues the government has not done enough to lift students or improve the system.
Read in Hansard ↗Haines supports the bill because she wants more funding for public schools, but says the Commonwealth should lift its share to 25 per cent and that the bill should be amended to better measure the states' contribution.
Read in Hansard ↗Kylea Tink supports the bill as a welcome step toward lifting public school funding, but says it does not go far enough because the Commonwealth should guarantee at least 25 per cent of the schooling resource standardThe funding benchmark used on this page to show the level of public money schools are meant to reach..
Read in Hansard ↗All speeches by bloc
8 speakers · 9 contributions · 8 support
“This Bill turns that maximum amount into a minimum. It turns that ceiling into a floor. It enables the Commonwealth government to ratchet up funding for public schools. And it makes it harder for future governments to rip that money out.”Read the full speech in Hansard ↗
“That is why I'm pleased to support the Better and Fairer Schools (Funding and Reform) Bill. It proposes to amend the Australian Education Act and increase funding for Australia's public schools to help to ensure equality of access. Importantly, the bill protects Commonwealth funding, going forward, and ensures that it cannot go backwards. It also includes requirements for transparency about outcomes, so school communities and families can see the positive changes occurring as a result of increased funding.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Jason Clare on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Jason Clare strongly supports the bill, saying it will lift Commonwealth funding for public schools by turning the current funding cap into a floor and locking in higher deals with the states and territories. He says that is needed to fix underfunding in public schools, especially for disadvantaged students.
“This bill turns that maximum into a minimum.”Read this contribution in Hansard ↗
Second reading speech
Clare supports the bill and says it is needed to lift public school funding and lock in reforms tied to that extra money. He argues it will help close equity gaps, improve transparency, and support disadvantaged students who are falling behind.
“As I said earlier, the provisions of this bill will give greater oversight in relation to Commonwealth investment in schools and the implementation of reforms. It's about making our education system better and fairer and about building a country where, as the Prime Minister often says, no-one is held back and no-one is left behind. At its core, that's what public education is all about. It's what it has always been about, and it's what this bill is about.”Read this contribution in Hansard ↗
“So, in the interests of my local community and the broader Queensland community, I'm urging the new Queensland LNP government and the new minister for education, John-Paul Langbroek, to do the right thing and join in good-faith negotiations. Better still, just go ahead and sign the agreement to ensure full and fairer funding for state schools in Queensland, including in my electorate. I'm the product of Ipswich East State School for my primary education, I graduated from what was then called Bundamba State High School, now Bundamba State Secondary College, and I got a good education. I want young people to get the good education that I received.”Read the full speech in Hansard ↗
“This reform is actually going to allow this government to finish the great work that David Gonski brought to the previous Labor government, who wanted to see and actually had a formula to make sure there was fairness in education. I'm very proud of the fact that it's our government that is actually doing that here with this legislation.”Read the full speech in Hansard ↗
“I do speak in favour of this bill, because it does allow the Commonwealth to deliver more funding to public schools. It also puts protections in place to ensure the Commonwealth gets its fair share of public school funding and that it can't go backward.”Read the full speech in Hansard ↗
“The bill is essential to delivering full funding to government schools, changing the current inflexible funding cap to instead be a floor. The current provisions in the act do not allow for the Australian government to set different shares across jurisdictions. This means that the uniform and inflexible funding cap in the act does not allow the varying agreed final funding shares and trajectories of jurisdictions agreed in the BFSA.”Read the full speech in Hansard ↗
“This bill ties funding to reform under the Better and Fairer Schools Agreement. These reforms will help Australian students catch up, keep up and finish school. It also ties funding to practical things like phonics checks, numeracy checks, evidence based teaching and catch-up tutoring to identify students who need additional support and to make sure they get it.”Read the full speech in Hansard ↗
6 speakers · 7 contributions · 4 support · 1 mixed · 1 unclear
“Overall, this legislation—I appreciate there are amendments to it—is important because our kids are our future.”Read the full speech in Hansard ↗
“The coalition supports this bill, but we are strongly advocating for a back-to-basics education sharply focused on literacy and numeracy, underpinned by explicit teaching and knowledge which commonsense curriculum— (Time expired)”Read the full speech in Hansard ↗
“On that note, I largely commend this bill, but the minister really does need to do a lot more negotiating with the states, and there are some other changes—as I have highlighted—that he could be considering.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Matt O'Sullivan on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Matt O'Sullivan says the bill falls short because it boosts funding without the accountability and reform he says schools need, and he argues the government has not done enough to lift students or improve the system.
“I note the title of this bill—'funding and reform'. I think this bill lacks reform. It doesn't have the reform that, ultimately, is necessary in our school systems across the country.”Read this contribution in Hansard ↗
Second reading speech
O'Sullivan says the coalition will support the bill because it invests in education, but he argues it does not go far enough on reform and accountability. He wants the government to finalise agreements with all states and territories and deliver stronger, more practical changes for teachers and students.
“The coalition will support this bill because we believe in the importance of investing in education. However, we call on the government to move beyond rhetoric and take decisive action to lift our schools to the standards that Australia deserves.”Read this contribution in Hansard ↗
“I rise to contribute on the second reading of the Better and Fairer Schools (Funding and Reform) Bill 2024 and, even more importantly, the amendment that's been moved by a Greens member, because the position of the Greens when it comes to school funding is very important and very relevant to all Australians but particularly to the people of my electorate of Sturt.”Read the full speech in Hansard ↗
“The coalition supports this bill. We do note that there is a Senate inquiry into the bill which will report on 18 November, hence providing all stakeholders with an important opportunity to raise any concerns. We urge the government to get on with the critical job of finalising school funding and reform agreements with every state and territory.”Read the full speech in Hansard ↗
2 speakers · 2 support
“The Greens will be supporting this bill in order to provide some certainty in case the coalition are elected. While we do not see this bill as even remotely adequate, we are supportive of the ratchet mechanism and the mild increase to public school funding. We have an absurd situation where the federal government, with vastly more revenue than the states and territories, is chiefly responsible for subsidising the overfunded private sector while public schools, who serve the majority of educationally disadvantaged kids in our communities, remain fundamentally less well off. All kids deserve a fully funded public school education. It's what every society should strive for, and in a rich country like ours it should be a given. The community expects the government to ensure every child has access to high-quality, free education, and that is what the Greens will continue to push for.”Read the full speech in Hansard ↗
“The Greens will support the passage of this bill through the House, but we reserve our position in the Senate and will be seeking amendments to this bill.”Read the full speech in Hansard ↗
6 speakers · 4 support · 2 mixed
“I support this bill because ultimately I want to see more funding for public schools, but I urge the government to consider amendments to improve the bill so that schools and students get the funding they deserve.”Read the full speech in Hansard ↗
“In this context then, while I welcome this bill, which will increase the Commonwealth's minimum share of funding for public schools, I question whether it goes far enough to address what is a fundamental problem in our public education system, that being chronic underfunding. In that context, I strongly encourage the government to acknowledge the differing needs and circumstances of the states when making these funding agreements, as not all states are equal, with the state of New South Wales currently struggling to fund everything it needs following the recent GST reforms. I'd also encourage the government to go further by guaranteeing a Commonwealth funding share of 25 per cent at a minimum to make sure our public schools can meet the needs of our children regardless of where they live or their family's socioeconomic status.”Read the full speech in Hansard ↗
“My commitment to public high schools and public education is also why I support all public schools reaching 100 per cent of their SRS funding as quickly as possible. In Wentworth, data from the Australian Education Union suggests that an additional $19.1 million per year is needed to bring all our public schools up to 100 per cent of the SRS. Statewide, the requirement is $1.8 billion per year across New South Wales. It's clear we have work to do and, because school funding is a shared responsibility, both Commonwealth and state governments need to step up. That is why the Better and Fairer Schools (Funding and Reform) Bill 2024 is a step forward. But I do have some concerns, both with this legislation and with the funding agreements being negotiated alongside it.”Read the full speech in Hansard ↗
“That does not properly reflect the true essence of equity, which is the idea that some students will need more help than others—that they will need a higher level of support. Gonski's dual equity target does exactly that, requiring that all students should complete a level of education that enables them to participate in the workforce and lead successful lives—this means completing high school—and differences in student outcomes should not be the result of differences in wealth, income, power or possessions.”Read the full speech in Hansard ↗
“This amendment makes any additional Commonwealth funding conditional upon the provision of the information needed to understand whether the schools got the funding they were allocated under the formula and how they spent it so we can analyse what works in improving outcomes.”Read the full speech in Hansard ↗
“I look forward to the minister engaging with the amendments before the chamber in relation to this bill. Fully funding our public schools in an investment in our children's future and our country. A strong education system is critical for spurring the innovation needed to tackle the climate crisis and ensuring our youth thrive in a complex and rapidly evolving economy. Quality education is essential to equip children with the skills to navigate the complexities of a digital world and to empower them with the knowledge to discern fact from misinformation. I urge the government to adopt the vital amendments and to make sure they are fully funding and futureproofing the funding of our schools today.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns the bill into an Act of Parliament., turning the bill into an Act.
Senate Education and Employment Legislation Committee; Committee report (18/11/2024)
Referred to committee
Referred to Committee (10 Oct 2024): Senate Education and Employment Legislation Committee; Committee report (18 Nov 2024)
APH bill page notes