Commonwealth: Australian Education Act 2013 (Cth)

Australian Education Act 2013 No. 67, 2013 Compilation No. 11 Compilation date: 18 December 2024 Includes amendments: Act No. 97, 2024 About this compilation This compilation This is a compilation of the Australian Education Act 2013 that shows the text of the law as amended and in force on 18 December 2024 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part 1—Preliminary Division 1—Preliminary 1 Short title 2 Commencement 3 Objects of this Act 4 Guide to this Act 5 Binding the Crown Division 2—Interpretation 6 Definitions 8 Definition of majority Aboriginal and Torres Strait Islander school 9 Definition of overpayment 11 Definition of recoverable payment 11A Definition of SRS indexation factor 12 Definition of total entitlement 13 Definitions of kinds of schools based on location 15 Levels of education 16 Working out the number of students at a school for a year 18 Minister to make determinations in relation to locations of schools 19 Non‑government schools providing only distance education Part 2—Grants of financial assistance to States and Territories 20 Guide to this Part 21 Financial assistance for schools 22 Conditions of financial assistance—implementing national policy initiatives and agreements relating to school education 22A Conditions of financial assistance—State‑Territory contributions 23 Conditions of financial assistance—conditions relating to payments to States and Territories for non‑government schools 24 Condition of financial assistance—recovering amounts 25 Minister to determine timing and amounts of recurrent funding 26 Entitlement to recurrent funding 27 Pro‑rating of recurrent funding 28 Minister to determine timing and amounts of capital funding 29 Minister to determine timing and amounts of other funding for schools 30 Minister to determine timing and amounts of funding for non‑government representative body Part 3—Recurrent funding for schools Division 1—Preliminary 31 Guide to this Part 31A Eligibility for funding under this Part Division 2—The funding formula for schools 32 The amount payable for a school 33 Base amount for schools 34 SRS funding amounts 35 School's total loading 35A Commonwealth share 35B Commonwealth share for transitioning government schools 35C Commonwealth share for transitioning non‑government schools Division 3—Working out loadings Subdivision A—Loadings (except location and size loadings) 36 Student with disability loading 37 Aboriginal and Torres Strait Islander loading 38 Socio‑educational disadvantage loading 39 Low English proficiency loading Subdivision B—Location loading 40 Location loading 41 Location percentage for certain schools Subdivision C—Size loading 42 Size loading 43 Definitions—kinds of schools based on size 44 Definition—maximum size loading 45 Definitions—primary percentage and secondary percentage 46 Very small schools—size loading 47 Very small schools—schools covered by item 3 of the table in section 46 48 Very small schools—major city schools 49 Very small schools—starting amount 50 Very small schools—ARIA student number 51 Medium‑sized schools—size loading Division 4—Miscellaneous Subdivision A—Capacity to contribute percentage 52 Determining CTC scores 53 Determinations may be on application or on Minister's own initiative 54 Capacity to contribute percentage Subdivision B—Miscellaneous 55 Locations of a school 56 Rounding amounts Part 5—Capital and other funding Division 1—Guide to this Part 66 Guide to this Part Division 2—Capital funding 67 Capital funding 68 Limit on total amount available for capital funding for block grant authorities Division 3—Other funding for schools 69 Special circumstances funding 69A Funding in prescribed circumstances 69B Transition adjustment funding Division 4—Funding for non‑government representative bodies 70 Funding for non‑government representative bodies Part 6—Approving authorities and bodies Division 1—Guide to this Part 71 Guide to this Part Division 2—Approving approved authorities 72 Application for person to be approved as an approved authority 73 Approval of person 74 Approval or refusal of approval on public interest grounds 75 Basic requirements for approval 76 Approved authorities for government schools taken to satisfy basic requirements 77 Ongoing policy requirements for approved authorities 78 Ongoing funding requirements for approved authorities 79 Limitation on approval 80 Variation or revocation of approval on application 81 Variation or revocation of approval on Minister's own initiative Division 3—Approving block grant authorities 82 Application for person to be approved as a block grant authority 83 Approval of person 84 Basic requirements for approval 85 Ongoing requirements for approval 86 Limitation on approval 87 Variation or revocation of approval on application 88 Variation or revocation of approval on Minister's own initiative Division 4—Approving non‑government representative bodies 89 Minister may invite a person to apply to be a non‑government representative body 90 Application for person to be approved as a non‑government representative body 91 Approval of person 92 Basic requirements for approval 93 Ongoing requirements for approval 94 Limitation on approval 95 Variation or revocation of approval on application 96 Variation or revocation of approval on Minister's own initiative Division 5—Former approved authorities and bodies 96A Continuing requirements Part 8—Taking action for non‑compliance and requiring amounts to be repaid Division 1—Guide to this Part 107 Guide to this Part Division 2—Taking action for non‑compliance and requiring amounts to be repaid 108 Application of Division for non‑compliance 109 Application of Division when amounts are required to be repaid 110 Actions the Minister may take 111 Effect of determination under paragraph 110(1)(a) or (b) Division 3—Recoverable payments 112 Recoverable payments 113 Reports about recoverable payments Part 9—Miscellaneous Division 1—Guide to this Part 114 Guide to this Part Division 2—Rules relating to applications 115 Approved form for applications 116 Request for further information 117 Withdrawal of application Division 3—Review of decisions 118 Reviewable decisions 119 Notice of decision 120 Internal review of reviewable decisions 121 Secretary or internal reviewer may require further information from applicants 122 Review by the Administrative Review Tribunal Division 4—Miscellaneous 123 False or misleading information 124 Secretary may arrange for use of computer programs to make decisions 125 Using, disclosing or publishing school education information 125A GST‑inclusive payments 126 Appropriation 127 Annual report by Minister 127A Annual statement by Minister 128 Independent reviews of arrangements and requirements relating to funding 129 Delegation 130 Regulations Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act in relation to school education and reforms relating to school education, and for related purposes Preamble The Parliament of Australia acknowledges the following matters. Education is the foundation of a skilled workforce and a creative community. A strong and sustainable schooling system is critical for Australia's future prosperity. A good education prepares students for full participation in society, both in employment and in civic life. Education also has a role to play in overcoming social and economic disadvantage. If Australia is to be a prosperous nation with a high standard of living in the 21st Century, our schooling system must provide children with the skills needed to participate fully in a knowledge‑based economy. The performance of Australia's schools, and school students, must continuously improve; our capacity to innovate, to embrace change and to seize new opportunities will depend more and more on the education and skills of our community. There is an ongoing and essential role for the Commonwealth in school education through its unique position to provide national policy leadership and facilitate national performance assessment and reporting. Transparency and accountability ensure public confidence in the education system and promote excellence in teaching and school leadership. The Commonwealth will deliver record and growing levels of investment in schools. To help education authorities provide every child with a quality education, regardless of where they live and what school they attend, this investment will be fairly and transparently distributed and allocated according to need. 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: Part 1—Preliminary Division 1—Preliminary 1 Short title This Act may be cited as the Australian Education Act 2013. 2 Commencement This Act commences on 1 January 2014. 3 Objects of this Act 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. 4 Guide to this Act 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. 5 Binding the Crown (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. Division 2—Interpretation 6 Definitions 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 has the meaning given by subsection 35B(2). State or Territory Minister for a school means the Minister of the State or Territory in which the school is located who has responsibility for school education. State‑Territory contribution amount has the meaning given by subsection 22A(2). student means a primary student or a secondary student. student with disability loading has the meaning given by subsection 36(1). Territory means the Australian Capital Territory or the Northern Territory. this Act includes any regulations made under this Act. total entitlement has the meaning given by section 12. total loading has the meaning given by section 35. transitioning government school means: (a) a government school for which financial assistance was payable under Part 3 or 4 of this Act for 2017; or (b) a government school prescribed by the regulations. transition year means: (a) for a government school other than a 6‑year transitioning government school—a year from 2018 to 2024 (inclusive); or (b) for a 6‑year transitioning government school—a year from 2018 to 2023 (inclusive); or (c) for a non‑government school—a year from 2020 to a year, no later than 2029, prescribed by the regulations for the school. Note: Transition year has a modified meaning in section 69B: see subsection 69B(6). very remote school has the meaning given by subsection 13(1). very small school has the meaning given by subsection 43(1). year means a calendar year (except when used to refer to a year in a course of primary education or secondary education). zero lower limit has the meaning given by subsection 43(4). 8 Definition of majority Aboriginal and Torres Strait Islander school (1) A school is a majority Aboriginal and Torres Strait Islander school for a year if: (a) the school: (i) has an ARIA index value of more than 10.53; or (ii) is in a very remote area (as defined in the MCEETYA Geographical Location Classification issued in July 2001, or any equivalent document); and (b) at least 50% of the primary and secondary students at the school for the previous year were, or for the year are, Aboriginal and Torres Strait Islander students. Note: For the number of students at the school, see section 16. (2) A school is also a majority Aboriginal and Torres Strait Islander school for a year if: (a) the school is not covered by paragraph (1)(a); and (b) at least 80% of the primary and secondary students at the school for the previous year were, or for the year are, Aboriginal and Torres Strait Islander students. (3) The Minister may determine, in writing, that a school is also a majority Aboriginal and Torres Strait Islander school for a year if the Minister is satisfied that the school is likely to be a majority Aboriginal and Torres Strait Islander school under subsection (1) or (2) for the year. (4) A determination made under subsection (3) is not a legislative instrument. 9 Definition of overpayment Recurrent funding (1) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a school for a year as a result of a determination made under paragraph 25(1)(a); and (b) the total of the amount of the payment, and any previous payments made, as a result of the determination, to the State or Territory for the school for the year, exceeds the school's total entitlement for the year. Note: Total entitlement is defined in section 12. Capital funding (4) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a year for a capital grants authority or block grant authority for a school as a result of a determination made under paragraph 28(1)(a) or (b); and (b) the total of the amount of the payment, and any previous payments made, as a result of the determination, to the State or Territory for the year for that authority and school, exceeds the amount determined under section 67 for the year for that authority and school. (5) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a year for a block grant authority for a school as a result of a determination made under paragraph 28(1)(b); and (b) the total of the amount of the payment, and any previous payments made, as a result of that or any other determination made under that paragraph, to any State or Territory for the year for a block grant authority, exceeds the amount worked out for the year under section 68. Other funding for schools (6) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a school for a year as a result of a determination made under paragraph 29(1)(a); and (b) the total of the amount of the payment, and any previous payments made, as a result of the determination, to the State or Territory for the school for the year, exceeds the amount determined for the school for the year under section 69. (6A) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a school for a year as a result of a determination made under paragraph 29(1)(aa); and (b) the total of the amount of the payment, and any previous payments made, as a result of the determination, to the State or Territory for the school for the year, exceeds the amount determined for the school for the year under section 69A. (6B) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a school for a year as a result of a determination made under paragraph 29(1)(ab); and (b) the total of the amount of the payment, and any previous payments made, as a result of the determination, to the State or Territory for the school for the year, exceeds the amount determined for the school for the year under section 69B. Funding for non‑government representative body (7) A payment is an overpayment under this Act if: (a) the Commonwealth makes the payment to a State or Territory for a non‑government representative body for a non‑government school as a result of a determination made under section 30; and (b) the total of the amount of the payment, and any previous payments made, as a result of the determination, to the State or Territory for the body for the year, exceeds the amount determined for the body for the year under section 70. 11 Definition of recoverable payment A payment is a recoverable payment if: (a) the Commonwealth purports to make the payment as a payment of financial assistance to a State or Territory under this Act; and (b) the Commonwealth does not have the power to make the payment (apart from under section 112); and (c) the payment is not an overpayment. 11A Definition of SRS indexation factor (1) The SRS indexation factor for a year is the higher of the following: (a) 1.03; (b) the number worked out under subsection (2) for the year. (2) The number is worked out using the following formula: where: base quarter means the June quarter in the previous year. consumer index number, for a quarter, means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Statistician for that quarter. reference quarter means the June quarter in the year. wage index number, for a quarter, means the Wage Price Index (total hourly rates of pay excluding bonuses/all sectors/all Australia/original) number published by the Australian Statistician for that quarter. (3) An SRS indexation factor worked out under subsection (2) is to be calculated to 3 decimal places (rounding up if the fourth decimal place is 5 or more). (4) Calculations under subsection (2): (a) are to be made using only the index numbers published in terms of the most recently published index reference period; and (b) are to be made disregarding index numbers that are published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period). (5) The regulations may prescribe the SRS indexation factor for a year. (6) If the regulations prescribe the SRS indexation factor for a year, subsections (1) to (4) do not apply in relation to the year. (7) Amounts worked out using an SRS indexation factor are to be rounded to the nearest whole dollar (rounding 50 cents upwards). 12 Definition of total entitlement A school's total entitlement for a year is the amount payable to a State or Territory under Division 2 of Part 3 for the school for the year. Note: In some circumstances, section 27 may affect a school's total entitlement. 13 Definitions of kinds of schools based on location (1) The following table sets out definitions of kinds of schools based on location. Definitions of kinds of schools based on location Item Column 1 Column 2 A school is this kind of school … if the school has an ARIA index value of … 1 a major city school 1, or less than 1. 2 an inner regional school more than 1, and less than 2.4. 3 an outer regional school at least 2.4, and less than 6. 4 a remote school at least 6, and less than 10. 5 a very remote school at least 10, and less than or equal to 15. (2) The regulations may replace a number (the original number) in column 2 of the table with a new number. If the regulations do so, a reference to the original number in: (a) the table; and (b) the fractions in section 41 (location percentage for certain schools), subsection 47(2) and section 50 (size loading for very small schools); and (c) the denominator of the fraction in subsection 47(1) (size loading for very small schools); is taken to be a reference to the new number. 15 Levels of education (1) The regulations may prescribe, for a State or Territory, the level of education that constitutes primary education or secondary education for schools located in the State or Territory. Note: A level of education may be prescribed by reference to a particular year in a course of primary education or secondary education (such as year 6), or by reference to a student's age. (2) Before the Governor‑General makes regulations for the purposes of subsection (1) for a State or Territory, the Minister must have regard to the arrangements made for providing education at government schools located in the State or Territory. This does not limit the matters to which the Minister may have regard. Ministerial determination (3) The Minister may determine, in writing, that a different level of education from the level prescribed by the regulations constitutes primary education or secondary education for a specified special school, special assistance school or student at the school if the Minister is satisfied that the special circumstances justify the determination. Note: A decision under this subsection is a reviewable decision (see Division 3 of Part 9). (4) A determination under subsection (3) is not a legislative instrument. 16 Working out the number of students at a school for a year (1) The regulations must prescribe a method for working out the number of students at a school for a year. (2) A reference in this Act to the number of students at a school for a year is a reference to the number worked out in accordance with the regulations. 18 Minister to make determinations in relation to locations of schools (1) This section applies if a school has more than one location. (2) The Minister may, in writing, determine the location of the school for the purposes of working out the school's ARIA index value. (3) If not all locations of the school are in the same State or Territory, the Minister may, in writing, determine which State or Territory the school is located in. (4) For the purposes of this Act, a determination under subsection (2) or (3) has effect according to its terms. (5) A determination under subsection (2) or (3) is not a legislative instrument. 19 Non‑government schools providing only distance education (1) A non‑government school that provides primary education or secondary education to distance education students only is taken not to be a school for the purposes of this Act. (2) The Minister may, by legislative instrument, determine that subsection (1) does not apply to a specified non‑government school. Part 2—Grants of financial assistance to States and Territories 20 Guide to this Part This Part sets out the financial assistance that is payable by the Commonwealth to States and Territories under this Act, and the conditions that apply when that financial assistance is provided. The conditions include requiring States and Territories to implement national policy initiatives for school education, as well as requiring a State or Territory to give any financial assistance provided to the State or Territory to the appropriate approved authority, capital grants authority, block grant authority or non‑government representative body. The Minister may determine the amounts and timing of individual payments of financial assistance. 21 Financial assistance for schools Financial assistance is payable to a State or Territory for a year under the following provisions: (a) Division 2 of Part 3 (funding formula for schools) for a school located in the State or Territory; (d) Division 2 of Part 5 (capital funding) for a capital grants authority or block grant authority for a school if the Minister determines that financial assistance is payable for the authority; (e) Division 3 of Part 5 (other funding for schools) for a school if the Minister determines that financial assistance is payable for the school for the year; (f) Division 4 of Part 5 (funding for non‑government representative bodies) for a non‑government representative body for a non‑government school if the Minister determines that financial assistance is payable for the body for the year. 22 Conditions of financial assistance—implementing national policy initiatives and agreements relating to school education (1) A payment of financial assistance under this Act to a State or Territory is subject to the condition that the State or Territory implements national policy initiatives for school education: (a) agreed by the Ministerial Council from time to time; or (b) prescribed by the regulations. Note: Before regulations are made for the purposes of this subsection, the Minister must consult, and have regard to any relevant decisions of, the Ministerial Council (see subsection 130(5)). (2) A payment of financial assistance under this Act to a State or Territory is also subject to the following conditions: (a) that the State or Territory is party to an agreement that satisfies all of the following: (i) the Commonwealth and one or more States or Territories are parties to the agreement; (ii) it is open to any State or Territory to become a party to the agreement; (iii) the agreement relates to school education reform; (b) that the State or Territory is party to an agreement with the Commonwealth relating to implementation by the State or Territory of school education reform; (c) that the State or Territory complies with the agreements mentioned in paragraphs (a) and (b). (3) The regulations may prescribe agreements for the purposes of paragraphs (2)(a) and (b). 22A Conditions of financial assistance—State‑Territory contributions (1) A payment of financial assistance under this Act to a State or Territory is subject to the following conditions: (a) the total amount of funding provided by the State or Territory for a year for government schools located in the State or Territory must equal or exceed the State‑Territory contribution amount for government schools in the State or Territory for the year; (b) the total amount of funding provided by the State or Territory for a year for non‑government schools located in the State or Territory must equal or exceed the State‑Territory contribution amount for non‑government schools in the State or Territory for the year. (2) The State‑Territory contribution amount for government schools or non‑government schools in a State or Territory for a year is the amount worked out using the following formula: (3) Unless the State or Territory's school education reform agreement specifies otherwise, the State‑Territory share for the State or Territory for a year from 2018 to 2023 (inclusive) is the percentage worked out using the following formula: where: final State‑Territory share means the State‑Territory share for government schools or non‑government schools, as the case requires, for the State or Territory for 2024 (see subsection (4)). starting State‑Territory share means the percentage prescribed by the regulations for the year for government schools or non‑government schools, as the case requires, in the State or Territory. transition rate means: (a) for 2018—0%; and (b) for each later year—the transition rate for the previous year increased by 20 percentage points. (4) Unless the State or Territory's school education reform agreement specifies otherwise, the State‑Territory share for the State or Territory for a year after 2023: (a) for government schools is: (i) if the starting State‑Territory share (within the meaning of subsection (3)) for the State or Territory for government schools is 75% or less—75%; or (ii) if the starting State‑Territory share for the State or Territory for government schools is more than 75% but less than 80%—the starting State‑Territory share; or (iii) if the starting State‑Territory share for the State or Territory for government schools is 80% or more—80%; and (b) for non‑government schools is: (i) if the starting State‑Territory share for the State or Territory for non‑government schools is 15% or less—15%; or (ii) if the starting State‑Territory share for the State or Territory for non‑government schools is more than 15% but less than 20%—the starting State‑Territory share; or (iii) if the starting State‑Territory share for the State or Territory for non‑government schools is 20% or more—20%. (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: (a) for government schools—60%; and (b) for non‑government schools—20%. (5) The total SRS amount for the State or Territory is: (a) for government schools—the sum of the amounts worked out under Division 2 of Part 3 for the year for each government school located in the State or Territory, as if the Commonwealth share for the year were 100%; and (b) for non‑government schools—the sum of the amounts worked out under Division 2 of Part 3 for the year for each non‑government school located in the State or Territory, as if the Commonwealth share for the year were 100%. (6) The school education reform agreement for a State or Territory is the agreement between the State or Territory and the Commonwealth relating to implementation by the State or Territory of school education reform mentioned in paragraph 22(2)(b). 23 Conditions of financial assistance—conditions relating to payments to States and Territories for non‑government schools (1) The following payments of financial assistance are subject to the conditions in this section: (a) a payment under Division 2 of Part 3 (funding formula for schools) to a State or Territory for a non‑government school; (c) a payment under Division 2 of Part 5 (capital funding) to a State or Territory for a capital grants authority for a non‑government school, or a block grant authority; (d) a payment under Division 3 of Part 5 (other funding for schools) to a State or Territory for a non‑government school; (e) a payment under Division 4 of Part 5 (funding for non‑government representative body) to a State or Territory for a non‑government representative body for a non‑government school. Note: For the consequences of failing to comply with this section, see Division 2 of Part 8. Payment to be made to relevant authority or body (2) The State or Territory is required: (a) to pay to the approved authority for a school each payment referred to in paragraph (1)(a) or (d) that is paid to the State or Territory for the school; and (c) to pay to the capital grants authority or block grant authority for a school each payment referred to in paragraph (1)(c) that is paid to the State or Territory for the authority; and (d) to pay to the non‑government representative body for a school each payment referred to in paragraph (1)(e) that is paid to the State or Territory for the body; and (e) when making a payment referred to in any of paragraphs (a) to (d) of this subsection, to describe the payment as a payment made out of money paid to the State or Territory by the Commonwealth. Payment to be made as soon as practicable (3) The State or Territory is required to make a payment referred to in subsection (1): (a) as soon as practicable after the amount is paid to the State or Territory; or (b) within a further period allowed by the Minister (whether the Minister allows this before or after the end of the time referred to in paragraph (a)). 24 Condition of financial assistance—recovering amounts A payment of financial assistance under this Act to a State or Territory is subject to the condition that the State or Territory comply with any requirements prescribed by the regulations in relation to recovering amounts, as a result of a determination made under paragraph 110(1)(a) or (b) in relation to a State or Territory, from: (a) the State or Territory; or (b) an approved authority, a capital grants authority, a block grant authority or a non‑government representative body. Note: Before regulations are made for the purposes of this section, the Minister must consult, and have regard to any relevant decisions of, the Ministerial Council (see subsection 130(5)). 25 Minister to determine timing and amounts of recurrent funding (1) The Minister may, in writing, determine: (a) an amount or amounts of payments of financial assistance that it appears to the Minister are or will become payable under Division 2 of Part 3 (funding formula for schools) to a State or Territory for a year for a school that is located in the State or Territory; and (d) when the payments are to be made. Note: A State or Territory is entitled to be paid a certain amount (see section 26). Determination of payments in advance (2) An amount may be determined, and a payment made under subsection (1), for a year: (a) taking account of information from a previous year; and (b) before the beginning of the year. Determinations after the end of the year (3) To avoid doubt, a determination for a school for a year may be made after the end of the year. 26 Entitlement to recurrent funding (1) The total amount of payments made under paragraph 25(1)(a) to a State or Territory for a school for a year must equal the amount determined under subsection (4) as the school's total entitlement for the year. Note 1: Total entitlement is defined in section 12. Note 2: The total entitlement may be reduced under section 110 (action Minister may take for failure to comply with this Act, and to require amounts to be repaid). (4) The Minister must, in writing, determine an amount that the Minister is satisfied is the total entitlement for a school covered by Division 2 of Part 3 (funding formula for schools). Note: A decision under this subsection is a reviewable decision (see Division 3 of Part 9). Determination not legislative instrument (5) A determination under this section is not a legislative instrument. 27 Pro‑rating of recurrent funding (1) The total entitlement for a school for a year is to be determined under section 26 in accordance with the regulations if: (a) no student receives primary education or secondary education at the school, or at a location of the school, during a part of the year (except school holidays); or (b) the approval of the school's approved authority is varied during the year to change a level of education for a location of the school; or (c) the school becomes or ceases to be entitled to financial assistance under Part 3. (2) Without limiting subsection (1), the regulations may prescribe: (a) that no financial assistance is payable for a school for a year in prescribed circumstances; or (b) that a full amount of financial assistance is payable for a school for a year in prescribed circumstances; or (c) that an amount of financial assistance is to be determined for a year on a pro rata basis set out in the regulations in prescribed circumstances. 28 Minister to determine timing and amounts of capital funding (1) The Minister may, in writing, determine: (a) an amount or amounts of payments of financial assistance that have been determined under subsection 67(1) (capital funding for capital grants authorities) to be payable to a State or Territory for a year for a capital grants authority; and (b) an amount or amounts of payments of financial assistance that have been determined under subsection 67(2) (capital funding for block grant authorities) to be payable to a State or Territory for a year for a block grant authority; and (c) when the payments referred to in paragraphs (a) and (b) are to be made. Note: The amount payable to a State or Territory may be reduced under section 110 (action Minister may take for failure to comply with this Act, and to require amounts to be repaid). Determinations not legislative instruments (2) A determination under this section is not a legislative instrument. 29 Minister to determine timing and amounts of other funding for schools (1) The Minister may, in writing, determine: (a) an amount or amounts of payments of financial assistance that have been determined under section 69 (special circumstances funding) to be payable to a State or Territory for a year for a school that is located in the State or Territory; and (aa) an amount or amounts of payments of financial assistance that have been determined under section 69A (funding in prescribed circumstances) to be payable to a State or Territory for a year for a school that is located in the State or Territory; and (ab) an amount or amounts of payments of financial assistance that have been determined under section 69B (transition adjustment funding) to be payable to a State or Territory for a year for a school that is located in the State or Territory; and (b) when the payments referred to in paragraphs (a) to (ab) are to be made. Note: The amount payable to a State or Territory may be reduced under section 110 (action Minister may take for failure to comply with this Act, and to require amounts to be repaid). Determinations not legislative instruments (2) A determination under this section is not a legislative instrument. 30 Minister to determine timing and amounts of funding for non‑government representative body (1) The Minister may, in writing, determine: (a) an amount or amounts of payments of financial assistance that have been determined under Division 4 of Part 5 (funding for non‑government representative body) to be payable to a State or Territory for a year for a non‑government representative body; and (b) when the payments referred to in paragraph (a) are to be made. Note: The amount payable to a State or Territory may be reduced under section 110 (action Minister may take for failure to comply with this Act, and to require amounts to be repaid). Determinations not legislative instruments (2) A determination under this section is not a legislative instrument. Part 3—Recurrent funding for schools Division 1—Preliminary 31 Guide to this Part Financial assistance for schools is payable by the Commonwealth each year, based on a formula in Division 2 of this Part. The formula produces the Commonwealth share of a total amount of funding. Most schools will move to that share over a period of transition years. All schools are entitled to a base amount of funding for every student. Students and schools who need extra support will also attract additional loadings. 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). There is a different SRS funding amount for primary and secondary students, which is indexed yearly. The base amount for a school for a year reflects: (a) the number of students at the school for the year; and (b) the SRS funding amount for the year for a student at the school; and (c) the capacity of the school's community to contribute financially to the school. The following loadings are also provided: (a) a loading for students with disability; (b) a loading for Aboriginal and Torres Strait Islander students; (c) a loading for socio‑educational disadvantage; (d) a loading for students who have low English proficiency; (e) a loading for schools that are not in major cities; (f) a loading for schools that are not large schools. The loadings (except the size loading) are a percentage of the relevant SRS funding amount multiplied by the number of students at a school that qualify for that loading. The size loading provides an amount based on the total number of students at a school. Small schools, and very small schools in very remote areas with a certain number of students, are entitled to the maximum size loading while large schools are not entitled to any size loading. All other schools are entitled to a proportion of the maximum size loading. 31A Eligibility for funding under this Part Financial assistance is not payable under this Part for a school unless: (a) there is an approved authority for the school; and (b) the approved authority is approved in relation to: (i) one or more locations of the school; and (ii) a level of education provided by the school at any of those locations. Division 2—The funding formula for schools 32 The amount payable for a school The amount of financial assistance that is payable under this Division to a State or Territory for a year for a school is worked out using the following formula: Note: This amount may be rounded up or down (see section 56). 33 Base amount for schools (1) A primary school or secondary school's base amount for a year is worked out using the following formula: Note: For the number of students at a school for a year, see section 16. (2) To work out the base amount for a year for a combined school, add up the following amounts: (a) the amount that would be the school's base amount for the year if the school were a primary school consisting only of those students at the school who are primary students; (b) the amount that would be the school's base amount for the year if the school were a secondary school consisting only of those students at the school who are secondary students. (3) To work out the base amount for a year for a school that is not covered by subsection 54(1) (capacity to contribute percentage) at which there are distance education students, add up the following amounts: (a) the amount that would be the school's base amount under subsection (1) or (2) for the year excluding the distance education students; (b) the amount that would be the school's base amount under subsection (1) or (2) for the year if: (i) the school were a school consisting only of the distance education students; and (ii) the SRS funding amount for a student at the school were the percentage of that amount set out in subsection (4); and (iii) the school's capacity to contribute percentage were 0%. (4) For the purposes of subparagraph (3)(b)(ii), the percentage is: (a) 35%; or (b) if the regulations prescribe another percentage for the purposes of this paragraph—that other percentage. Note 1: The percentage set out in this subsection maintains support for a school, while recognising the recurrent cost structure and operating profile of the school. Note 2: A school attracts 100% of the loadings for distance education students. 34 SRS funding amounts SRS funding amount for a primary student (1) The SRS funding amount for a year for a primary student is: (a) for 2018—$10,953; or (b) if the regulations prescribe another amount for a primary student for the year—that other amount; or (c) otherwise—the SRS funding amount for a primary student for the year, as indexed under subsection (3). Note: For distance education students, see subsection 33(3). SRS funding amount for a secondary student (2) The SRS funding amount for a year for a secondary student is: (a) for 2018—$13,764; or (b) if the regulations prescribe another amount for a secondary student for the year—that other amount; or (c) otherwise—the SRS funding amount for a secondary student for the year, as indexed under subsection (3). Indexation of SRS funding amounts (3) An SRS funding amount for a primary student or a secondary student for a year is indexed as follows: SRS funding amount for a student at a combined school (4) For the purposes of Division 3 (loadings), the SRS funding amount for a year for a student at a combined school is worked out in accordance with the following formula: Note: The SRS funding amounts in subsections (1) and (2) are used to work out a combined school's base amount under section 33. 35 School's total loading A school's total loading for a year is the total of the following amounts: (a) the school's student with disability loading for the year; (b) the school's Aboriginal and Torres Strait Islander loading for the year; (c) the school's socio‑educational disadvantage loading for the year; (d) the school's low English proficiency loading for the year; (e) the school's location loading for the year; (f) the school's size loading for the year. 35A Commonwealth share Commonwealth share—government schools (1) The Commonwealth share for a government school for a year (subject to subsection (2) and section 35B) is the percentage prescribed by regulations made for the purposes of this subsection. Note: Before regulations are made for the purposes of this subsection, the Minister must consult, and have regard to any relevant decisions of, the Ministerial Council (see subsection 130(5)). (2) Regulations made for the purposes of subsection (1) must not prescribe a Commonwealth share for a government school for a year that is: (a) less than the following: (i) if the school is located in the Northern Territory and the year is 2029 or a later year—40%; (ii) otherwise—20%; or (b) less than a percentage (the past percentage) that has previously been prescribed, by regulations made for the purposes of subsection (1), as the Commonwealth share for the school for that year or the previous year (whether or not the regulations that prescribed the past percentage are still in force). (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. (4) Subsection (3) does not limit the operation of: (a) subsection 33(3A) of the Acts Interpretation Act 1901; or (b) subsection 13(3) of the Legislation Act 2003. (5) Section 42 (disallowance) of the Legislation Act 2003 does not apply to regulations made for the purposes of subsection (1). Commonwealth share—non‑government schools (6) Unless regulations made for the purposes of this subsection prescribe otherwise, the Commonwealth share for a non‑government school for a year (subject to section 35C) is 80%. 35B Commonwealth share for transitioning government schools (1) The Commonwealth share for a transitioning government school for a transition year for the school is the percentage worked out using the following formula: (2) Unless the regulations prescribe otherwise, the starting Commonwealth share is the amount worked out using the following formula (expressed as a percentage): (3) The 2017 recurrent funding for the relevant approved authority is: (a) if financial assistance was payable under Division 2 of Part 3 for schools of the relevant approved authority for 2017—the sum of the total entitlements for those schools for that year; or (b) if financial assistance was payable under Division 5 of Part 3, or under Part 4, for schools of the relevant approved authority for 2017—the relevant approved authority's total entitlement for that year. (4) The adjusted SRS amount for the relevant approved authority is the sum of the amounts of financial assistance that would be payable under Division 2 of Part 3 for the schools of the relevant approved authority for 2017 if: (a) Division 2 of Part 3 as in force immediately before the commencement of this paragraph applied for the purposes of working out those amounts; and (b) Divisions 3 and 4 of Part 3 as in force immediately after the commencement of this paragraph applied in relation to 2017; and (c) for the purposes of the operation of paragraphs (a) and (b) in relation to 2017: (i) the Commonwealth share for each school were 100%; and (ii) the SRS funding amount for a primary student were $10,576; and (iii) the SRS funding amount for a secondary student were $13,290; and (iv) the SES score for each school were the score for the school for 2018; and (v) the maximum size loading for a primary school were $166,790; and (vi) the maximum size loading for a secondary school were $266,864; and (vii) the starting amount for a primary school were $11,119; and (viii) the starting amount for a secondary school were $22,239. Note: The expression SES score was defined in this Act as previously in force in relation to 2017. (5) The relevant approved authority is: (a) for a school for which financial assistance was payable under Part 3 or 4 of this Act for 2017—the authority that was the approved authority for the transitioning government school immediately before the commencement of this subsection; and (b) for a school prescribed as a transitioning government school by the regulations—the authority prescribed by the regulations. (6) The final Commonwealth share is: (a) unless a percentage is prescribed under paragraph (b)—the percentage that would be the Commonwealth share if the school was not a transitioning government school; or (b) the percentage prescribed by the regulations. Note: For paragraph (a), see section 35A. (7) Unless the regulations otherwise provide, the transition rate for a school other than a 6‑year transitioning government school: