Australian Education Act 2013

The "Commonwealth Share Can't Go Backwards" Rule

A key protection baked into this law: the Commonwealth's funding share can never decrease from what it was previously set at. This is a one-way ratchet — it can go up, but not down.

States and Territories Must Match Their Share

To receive Commonwealth funding, states and territories must meet minimum funding contribution requirements of their own. The Commonwealth sets what percentage each state/territory must contribute, with targets phasing in over time.

Conditions on the Money

The funding isn't unconditional. States and territories must:

• Implement nationally agreed education reforms
• Be party to intergovernmental school education reform agreements
• Pass funding through to the right authorities (e.g., private school funding must be passed directly to the school's governing body)

Private School "Capacity to Contribute"

For private schools, the formula takes into account the financial capacity of the school community — wealthier school communities are expected to contribute more themselves, so they receive proportionally less Commonwealth funding.

Transition Period

Most schools are moving gradually toward their "full" funding share over a transition period (2018–2024 for government schools; up to 2029 for private schools). This is to avoid sudden funding shocks.

Who Does This Affect?

• Parents: Determines how well-resourced your child's school is
• Schools and school systems: Sets the rules for how much funding they receive and what strings are attached
• State and Territory governments: Compels them to meet minimum funding obligations and implement national education reforms
• Private school governing bodies: Must meet approval requirements and comply with conditions to access funding