National Education Reform: the Australian Education Act 2013

Tasmania has become the forth State to sign on to the Government’s Better Schools Plan, also known as the Gonski school funding plan joining NSW, South Australia and the ACT in agreeing to the new schools funding system.

The legislation behind the reforms, the Australian Education Act 2013 (No 68) (CTH) and the Australian Education (Consequential and Transitional Provisions) Act 2013 (No 68) (CTH) were introduced in November 2012 and June 2013 respectively. Both bills have passed the Senate and were assented to on 27 June 2013. Victoria, WA and Queensland have thus far refused to sign the deal, the deadline for which was extended to 14 July by Prime Minister Rudd after the Federal leadership change.

The Gonski Report

The legislation comprises the new funding model which is based on a schools review conducted by business person David Gonski released in February last year. The Gonski Report made 41 recommendations in response to a finding that that Australia has one of the largest gaps amongst developed nations between high and low performing students, a gap that is on the rise. It also established that educational performance is powerfully and unacceptably associated to students’ circumstances - the more disadvantaged, the poorer the child’s outcomes.

The Plan

The new law institutes a needs-based school funding formula across all government and non-government sectors, inserting an additional A$14.5 billion for schools over six years should all states and territories sign up. Schools below a set schooling resource standard (SRS) will receive 4.7 per cent growth a year in commonwealth funding until they reach the new SRS. Schools above the SRS will receive 3.0 per cent annually until they are in line with the new school standard. Schools receive extra loadings for size, location, indigenous students, students from low socio-economic backgrounds or with a disability. There is provision for the minister to be able to cut or delay payments if a state or territory fails to comply with any conditions of funding.

Among other things, a major hurdle has been to convince states to contribute one third of the funds, which for states without significant fiscal revenue means major spending cuts in other areas. It also establishes far more Commonwealth involvement in schools to implement other components of the National Plan.

States who do not sign up

States who do not sign up by the deadline will likely see their funding reduced once time-limited national partnerships expire which most are in line to do within the next 12 months. The Act contains the current funding model for schools meaning that non-participating states and territories will keep their present indexation.

Implications for Australian Federalism?

Although it won’t be possible to gauge the full extent of the shift in responsibility for education from the States and Territories to the Commonwealth until the regulations are released, the shift will certainly be significant. The potential constitutional issues remain unresolved and indeed represent a major hurdle for the states who have not yet signed up.

According to Anne Twomy, Professor at Sydney Law School, under the new plan, the Commonwealth will acquire “potentially wide powers with respect to schooling in the states through this Act and its broad regulation-making powers. It may be that the Commonwealth does not intend to use these powers in an intrusive manner, but this can’t be guaranteed for future governments.•

•It is not possible to describe the government’s education reforms as simply a means to achieve better funding for schools. If that was the sole aim, it could be done by providing the money without new conditions and powers. This legislation clearly goes beyond that aim by significantly expanding Commonwealth power.”

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