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Commonwealth act
The Australian Education Act 2013 establishes the Commonwealth’s needs‑based school funding system, allocating a Schooling Resource Standard per student plus extra loadings for disadvantage. It locks in minimum (non‑decreasing) Commonwealth shares, requires states to meet matching contributions and reform conditions, and adjusts private school payments for community capacity. It affects parents, schools, school systems, state/territory governments and private school bodies because it determines funding levels, eligibility and conditionality that shape resources and accountability.
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Direct links to the current provisions in Australian Education Act 2013.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
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. In its role as a national policy leader, the Australian Government will work collaboratively with States and Territories to achieve agreed national objectives and priorities for schools through the First Ministers’ Council and the Ministerial Council. To drive improvement in school outcomes, State and Territory education authorities will be required to deliver evidence‑based reforms in schools.
The Parliament of Australia enacts:
This Act may be cited as the Australian Education Act 2013.
This Act commences on 1 January 2014.
The objects of this Act are: (a) to provide a Commonwealth needs‑based funding model for school education that: (i) includes a base amount of funding for every student and loadings for students and schools who need extra support; and (ii) is affordable, simple, predictable and fair; and (iii) invests in evidence‑based reforms that will improve student outcomes; and (b) to support the objectives of intergovernmental agreements on school education; and (c) to support transparency and accountability in relation to funding arrangements for school education in Australia.
This Act provides Commonwealth financial assistance for schools. The financial assistance is provided to States under section 96 of the Constitution, and to Territories under section 122 of the Constitution. The Act imposes requirements on States and Territories as conditions of this financial assistance, including requirements to comply with intergovernmental agreements on school education, and to implement nationally‑agreed policy initiatives on school education.
Each school has an approved authority, which is approved by the Minister. For a government school located in a State or Territory, the approved authority is the State or Territory. For a non‑government school, the approved authority is a body corporate that is approved by the Minister for the school.
Financial assistance is provided directly to a State or Territory for its government schools. Financial assistance for a non‑government school located in a State or Territory is provided to the State or Territory which must give it to the approved authority for the school.
The amount of financial assistance that a school attracts for a year is worked out using the formula in Division 2 of Part 3. The financial assistance consists of a base amount for all schools, plus loadings for schools with students with greater needs. The base amount and most of the loadings are worked out by reference to an amount per student called the SRS funding amount. (SRS is short for schooling resource standard.)
The formula produces the Commonwealth share of a total amount of funding. Not all schools will attract the final Commonwealth share immediately. Most schools will move to that share over a period of transition years.
The Minister can determine other kinds of funding for any school under Part 5. The Minister can determine capital funding for non‑government schools, which is ultimately provided to capital grants authorities and block grant authorities. The Minister can determine funding for schools in special circumstances or if the Minister is satisfied that prescribed circumstances apply in relation to schools. In addition, the Minister can determine additional adjustment funding for schools for transition years for the schools, in accordance with the regulations.
The Minister can also determine funding for non‑government representative bodies for non‑government schools. Non‑government representative bodies are bodies that represent approved authorities for non‑government schools. A block grant authority or non‑government representative body is approved by the Minister.
The Minister may require an amount to be repaid, reduce an amount that would otherwise be payable, or delay making a payment, if an amount is owed to the Commonwealth under this Act (or other similar Acts) or there is a failure to comply with particular requirements.
(1) This Act binds the Crown in each of its capacities. (2) This Act does not make the Crown liable to be prosecuted for an offence.
In this Act:
6‑year transitioning government school means a transitioning government school whose starting Commonwealth share is less than its final Commonwealth share.
Aboriginal and Torres Strait Islander loading has the meaning given by subsection 37(1).
Aboriginal and Torres Strait Islander student has the meaning given by the regulations.
amount includes a nil amount.
approved authority for a school means the person that is approved as the approved authority for the school under section 73.
approved system authority has the meaning given by subsection 78(6).
ARIA index value has the meaning given by the regulations.
Note: The Minister may determine the location of a school with more than one location for the purposes of working out the school’s ARIA index value (see section 18).
ARIA student number has the meaning given by section 50.
ATSI percentage has the meaning given by subsection 37(2).
base amount has the meaning given by subsections 33(1), (2) and (3).
block grant authority for a school means the person that is approved as the block grant authority for the school under section 83.
capacity to contribute percentage has the meaning given by subsections 54(1), (2) and (3).
capital expenditure includes expenditure relating to any of the following:
(a) investigating the need for:
(i) schools in particular areas; or
(ii) schools of particular kinds in particular areas; or
(iii) buildings or other facilities (or parts of buildings or other facilities) or equipment;
(b) purchasing land, with or without buildings (or parts of buildings);
(c) planning for the erection, alteration, extension, demolition or refurbishment of a building or other facility (or part of a building or other facility);
(d) developing or preparing land for building or other purposes;
(e) erecting, altering, extending, demolishing or refurbishing a building or other facility (or part of a building or other facility);
(f) installing or upgrading water, electricity or any other services;
(g) providing equipment, including information technology equipment;
(h) providing furniture;
(i) providing library materials or obtaining services and goods for cataloguing a library (or part of a library);
(j) the administrative expenses of a capital grants authority in relation to administering other capital expenditure;
(k) any other expenditure prescribed by the regulations for the purposes of this definition.
capital grants authority for a school means:
(a) the approved authority for the school; and
(b) if a block grant authority is also approved for the school—the block grant authority; and
(c) if the school is a non‑government school located in a State or Territory—the approved authority for government schools located in that State or Territory.
combined school means a school that provides both primary education and secondary education.
Commonwealth share:
(a) for a school not covered by paragraph (b) or (c)—has the meaning given by:
(i) for a government school—subsection 35A(1); or
(ii) for a non‑government school—subsection 35A(6); and
(b) for a transitioning government school for a transition year for the school—has the meaning given by subsection 35B(1); and
(c) for a non‑government school for a transition year for the school—has the meaning given by section 35C.
continuing requirement has the meaning given by subsection 96A(2).
CTC score: a school’s CTC score is the number determined by the Minister under subsection 52(1).
departmental official means an official (within the meaning of the Financial Management and Accountability Act 1997):
(a) who is in, or part of, the Department; and
(b) whose duties consist of, or include, dealing with matters relating to payments of financial assistance to a State or Territory under this Act.
distance education student: a person is a distance education student at a school located in a State or Territory only if:
(a) the person resides in the State or Territory; and
(b) the State or Territory provides funding for the school (other than financial assistance provided to the State or Territory for the school in accordance with this Act) for students enrolled at the school who receive distance education (however described) from the school; and
(c) the person is not approved as a home education student (however described) in accordance with the law of the State or Territory in which the person resides.
final Commonwealth share has the meaning given by subsection 35B(6).
First Ministers’ Council means a body (however described) that consists only of, or that includes, the following:
(a) the Prime Minister;
(b) the Premiers of each State;
(c) the Chief Ministers of the Australian Capital Territory and Northern Territory.
government school means a school that is conducted by or on behalf of the government of a State or Territory.
inner regional school has the meaning given by subsection 13(1).
internal reviewer has the meaning given by subsection 120(3).
large school has the meaning given by subsection 43(1).
level of education: see section 15.
location loading has the meaning given by subsection 40(1).
location percentage has the meaning given by subsection 40(2).
low English proficiency loading has the meaning given by subsection 39(1).
major city school has the meaning given by subsection 13(1).
majority Aboriginal and Torres Strait Islander school has the meaning given by subsections 8(1), (2) and (3).
maximum lower limit has the meaning given by subsection 43(2).
maximum size loading has the meaning given by subsections 44(1) and (4).
maximum upper limit has the meaning given by subsection 43(3).
medium‑sized school has the meaning given by subsection 43(1).
Ministerial Council means a body (however described) that consists of the Minister of the Commonwealth, and the Minister of each State and Territory, who is responsible, or principally responsible, for matters relating to school education.
non‑government representative body for a non‑government school means the person that is approved as the non‑government representative body for the school under section 91.
non‑government school means a school that is not a government school.
outer regional school has the meaning given by subsection 13(1).
overpayment has the meaning given by subsections 9(1) to (7).
overseas student: an overseas student is a person:
(a) to whom one or more of the following subparagraphs apply:
(i) the person holds a visa in force under the Migration Act 1958 that permits the person to travel to Australia for the purpose of undertaking a course provided by a body;
(ii) the person is included in such a visa in force under that Act;
(iii) the person is prescribed as an overseas student by regulations made for the purposes of this subparagraph; and
(b) who is not excluded from being an overseas student by regulations made for the purposes of this paragraph.
personal information has the same meaning as in the Privacy Act 1988.
primary education: see subsections 15(1) and (3).
primary percentage has the meaning given by subsection 45(1).
primary school means a school (other than a combined school) that provides primary education.
primary student at a school means a person receiving primary education at the school (including a part‑time student, but excluding an overseas student).
recoverable payment has the meaning given by section 11.
relevant person for a reviewable decision means:
(a) for a reviewable decision referred to in an item of the table in subsection 118(1)—the person referred to in column 3 of that item; and
(b) for a reviewable decision prescribed by regulations made for the purposes of subsection 118(2)—the person specified by the regulations as the relevant person for that decision.
remote school has the meaning given by subsection 13(1).
reviewable decision has the meaning given by subsections 118(1) and (2).
school means a primary school, a secondary school or a combined school, and, where appropriate, a proposed school.
Note 1: Non‑government schools that provide education to distance education students only are taken not to be schools (see section 19).
Note 2: For references to school in Part 3 (recurrent funding for schools), see section 55.
school education information means information obtained under or for the purposes of this Act.
school education reform agreement has the meaning given by subsection 22A(6).
secondary education: see subsections 15(1) and (3).
secondary percentage has the meaning given by subsection 45(2).
secondary school means a school (other than a combined school) that provides secondary education.
secondary student at a school means a person receiving secondary education at the school (including a part‑time student, but excluding an overseas student).
Secretary means the Secretary of the Department.
size loading has the meaning given by subsections 42(1) to (4).
small school has the meaning given by subsection 43(1).
socio‑educational disadvantage loading has the meaning given by subsection 38(1).
sole provider school: a school is a sole provider school if:
(a) the school:
(i) has an ARIA index value of more than 5.92; or
(ii) is in a remote or very remote area (as defined in the MCEETYA Geographical Location Classification issued in July 2001, or any equivalent document); and
(b) the distance between the school and any other school that provides the same level of education is more than 25 km.
Note: This distance is measured in a straight line (see section 35 of the Acts Interpretation Act 1901).
special assistance school means a school that:
(a) is, or is likely to be, recognised by the State or Territory Minister for the school as a special assistance school; and
(b) primarily caters for students with social, emotional or behavioural difficulties.
special school means a school that:
(a) is, or is likely to be, recognised by the State or Territory Minister for the school as a special school; and
(b) provides education under special programs, or special activities, designed specifically for students with disabilities.
SRS funding amount has the meaning given by subsections 34(1), (2) and (4).
SRS indexation factor, for a year, means the SRS indexation factor worked out in accordance with, or prescribed under, section 11A.
starting amount has the meaning given by subsections 49(1) and (4).
starting Commonwealth share
This is an opening excerpt, not the complete document.