EXPLANATORY STATEMENT
Issued by the authority of Minister of Education
Australian Education Act 2013
Australian Education (Commonwealth Share for Government Schools) Amendment (Adjustment No. 1) Regulations 2025
AUTHORITY
Subsection 130(1) of the Australian Education Act 2013 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed by the regulations, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. Subsection 130(5) of the Act provides that, before the Governor-General makes a regulation for the purposes of a provision listed at paragraphs 130(5)(a) or (b), the Minister must consult, and have regard to any relevant decisions of, the Ministerial Council.
The Australian Education (Commonwealth Share for Government Schools) Amendment (Adjustment No. 1) Regulations 2025 (the Amendment Regulations) is made for the purposes of subsection 35A(1) of the Act. Subsection 35A(1) of the Act provides that 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 that subsection.
Under subsection 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument. The amendments to the Australian Education (Commonwealth Share for Government Schools) Regulations 2024 (the Principal Regulations) made by the Amendment Regulations rely on this provision.
PURPOSE AND OPERATION
The Act is the principal legislation by which the Australian Government provides Commonwealth financial assistance for schools.
Under the Act, financial assistance is provided to states and territories for distribution to entities approved to receive financial assistance under the Act, including approved authorities for government schools. Entities approved to receive financial assistance under the Act must satisfy and continue to satisfy the conditions of approval outlined in the Act.
The Principal Regulations prescribe the Commonwealth share for a government school in a state or territory for a year, for the purposes of subsection 35A(1) of the Act. The Principal Regulations prescribe a Commonwealth share of 20% or above for government schools in all states and territories for 2025 and each later year.
The purpose of the Amendment Regulations is to amend the Principal Regulations to prescribe the Commonwealth share for a government school for a year in those states and territories party to the Better and Fairer Schools Agreement – Full and Fair Funding 2025-2034 (Full and Fair Funding Agreement) and an associated bilateral agreement at percentages agreed through bilateral negotiations and set in bilateral agreements. For states and territories not party to both the Full and Fair Funding Agreement and an associated bilateral agreement, the Commonwealth share for a government school for a year will be set in line with the Principal Regulations.
COMMENCEMENT
The Amendment Regulations commence on the day after it is registered.
CONSULTATION
The Minister consulted and considered all feedback provided by members of the Ministerial Council, which consists of all state and territory Education Ministers, on the Amendment Regulations. Responses from Ministerial Council members were supportive of the Amendment Regulations and these stakeholders did not propose any changes to the content of the Amendment Regulations. This consultation process met the requirements of subparagraph 130(5)(a)(iv) of the Act for the Minister to consult, and have regard to any relevant decisions of, the Ministerial Council before the Governor-General makes a regulation for the purposes of subsection 35A(1) of the Act.
The Minister also consulted with Independent Schools Australia, the National Catholic Education Commission and First Nations representative bodies including the Coalition of Peaks and the National Aboriginal and Torres Strait Islander Corporation on the Amendment Regulations. These stakeholders did not propose any changes to the content of the Amendment Regulations.
PARLIAMENTARY SCRUTINY
The Amendment Regulations are exempt from disallowance under section 42 of the Legislation Act. This is because subsection 35A(5) of the Act provides that regulations made for the purposes of subsection 35A(1) are exempt from disallowance.
As the Amendment Regulations are exempt from disallowance, a Statement of Compatibility with Human Rights is not required (see subsection 9(1) of the Human Rights (Parliamentary Scrutiny) Act 2011).
Australian Education (Commonwealth Share for Government Schools) Amendment (Adjustment No. 1) Regulations 2025
EXPLANATION OF PROVISIONS
Section 1: Name
This section provides that the title of the Regulations is the Australian Education (Commonwealth Share for Government Schools) Amendment (Adjustment No. 1) Regulations 2025 (the Amendment Regulations).
Section 2: Commencement
This section provides that the Amendment Regulations commence on the day after it is registered.
Section 3: Authority
This section provides that the Amendment Regulations are made under the Australian Education Act 2013 (the Act).
Section 4: Schedules
This section provides that each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1: Amendments
This item repeals section 4 of the Australian Education (Commonwealth Share for Government Schools) Regulations 2024 (Principal Regulations) and replaces it with a new section 4.
New section 4 prescribes, for the purposes of subsection 35A(1) of the Act and subject to subsection 35A(2) and section 35B of the Act, the Commonwealth share for a government school for a year in each state and territory.
The table in section 4 of the Amendment Regulations sets out, for each state and territory, the prescribed Commonwealth share for a government school in that state or territory for each of the following years: 2025, 2026, 2027, 2028, 2029, 2030, 2031, 2032, 2033 and 2034 or a later year.
For government schools in New South Wales, Queensland, Western Australia, South Australia, Tasmania and the Australian Capital Territory, the Commonwealth share is prescribed at or above 20% for each year from 2025 to 2034, reaching 25% by 2034. This reflects percentages agreed through bilateral negotiations, as documented in the Better and Fairer Schools Agreement – Full and Fair Funding 2025-2034 (Full and Fair Funding Agreement) and associated bilateral agreements.
For a government school in Victoria, the Commonwealth share is prescribed at 20% for each year from 2025 to 2034 or a later year. This reflects the existing arrangement under the Principal Regulations. The 20% share has been maintained for Victoria because it has not yet entered into a bilateral agreement under the Full and Fair Funding Agreement.
For a government school in the Northern Territory, the Commonwealth share is prescribed at 24.92% for 2025, and this share increases by increments each year until 2029, when it reaches 40%, where it remains for all later years. These are the same shares that were originally set out in the Principal Regulations. This reflects that the Northern Territory remains a party to the Better and Fairer Schools Agreement 2025-2034 and its associated bilateral agreement, and so the Commonwealth share for a government school in the Northern Territory has not changed.
The Amendment Regulations are validly made in accordance with subsection 35A(2) of the Act. This provision requires that any regulations made for the purposes of subsection 35A(1) must not prescribe a Commonwealth share for a government school for a given year that is either less than:
- a percentage mentioned in paragraph (a); or
- any percentage previously prescribed by regulations made under subsection 35A(1) for that school for the same year or the preceding year (paragraph 35A(2)(b)).
The Principal Regulations are the only regulations made to date for the purposes of subsection 35A(1) of the Act and so establish the minimum Commonwealth share for a government school for a year for the purposes of paragraph 35A(2)(b). The Amendment Regulations do not prescribe any percentage that is lower than those set out in the Principal Regulations. Accordingly, the proposed Amendment Regulations comply with the requirement of paragraph 35A(2)(b) of the Act.