Prime Minister Announces $4.8 Billion School Funding Boost for NSW

The funds will be rolled out over the next decade as part of the Better and Fairer Schools Agreement.

Prime Minister Anthony Albanese meets with students during a visit to Carlton South Primary School in Sydney, Australia, on March 4, 2025. AAP Image/Bianca De Marchi

Prime Minister Anthony Albanese revealed a $4.8 billion (US$3 billion) federal funding boost for New South Wales (NSW) public schools.

The funds will be rolled out over the next decade as part of the Better and Fairer Schools Agreement, benefitting around 770,000 students across more than 2,000 schools in the state.

“There is nothing more important for government to do than to leave a legacy that creates opportunities for this and generations to come,” Albanese said in a joint press conference with Education Minister Jason Clare and NSW Premier Chris Minns on March 4.

The deal, which was finalised after prolonged negotiations, sees the Commonwealth raise its commitment from a 2.5 percent increase to 5 percent, raising its share of school funding to 25 percent nationwide.

“This is the largest-ever federal injection of funds into New South Wales schools,” Albanese added.

However, he made it clear that the funding comes with conditions, including evidence-based teaching practices, phonics and numeracy checks, catch-up tutoring, and increased mental health support.

Minns called the deal a “game changer” for the state’s education system.

“We need to ensure we’re putting as much money and effort into the next generation as possible,” he said.

Clare emphasised the need for the investment, highlighting that one in ten children fall below minimum literacy and numeracy standards, a rate that jumps to one in three for disadvantaged students.

“The overwhelming majority of those kids are in our public schools,” Clare said.

Better and Fairer Schools Agreement

The funding boost is part of a broader plan to fully fund public schools in line with the 2012 Gonski review recommendations.

Under the agreement, the federal government’s contribution will rise from 20 percent to 25 percent, with states required to contribute at least 75 percent of the minimum funding level and implement key reforms.

Most states and territories have agreed, with the Northern Territory, Western Australia, Tasmania, and the Australian Capital Territory finalising their deals by late 2024. South Australia signed it in January 2025 and NSW joined in today.

Now Queensland remains the only state yet to conclude negotiations.

Opposition Criticises Lack of Transparency

The opposition has raised concerns about the transparency of the funding deals.

Shadow Education Minister Sarah Henderson accused the Albanese government of withholding the details of agreements, despite a Senate request for access.

“Despite repeated calls for transparency, Labor continues to hide the terms of the school funding deals it has struck with Victoria, South Australia, and Western Australia,” Henderson told ABC news.

However, she confirmed that a Coalition government would honour all existing school funding agreements.

Private Schools Surge as Public Enrolments Stall

The need for an uplift in public schools is reinforced by recent data from the Australian Bureau of Statistics (ABS), which shows a shift in enrolment trends, with independent schools experiencing significant growth while government school enrolments stagnate.

Total student enrolments reached 4.13 million in 2024, an increase of 1.1 percent, but government school enrolments have only grown by 1 percent over the past five years. Independent schools saw an 18.5 percent rise in enrolments, while Catholic schools experienced a 6.6 percent increase.

While government schools educate 63.4 percent of students, the growing preference for private education raises concerns about the long-term sustainability of public school funding.

The national retention rate for Year 7/8 to Year 12 students stands at 79.9 percent, with an average student-to-teacher ratio of 12.9 to one.

NAPLAN Results Demand School Reform

The release of the 2024 NAPLAN results in August last year reignited discussions about the state of Australia’s education system.

The data revealed that 400,000 students require catch-up tutoring, while one in ten students fall below literacy and numeracy standards.

Nearly a quarter of the 1.3 million students tested across Years 3, 5, 7, and 9 were classified as “developing,” which indicates they are working towards meeting expectations of their school level.

Migrant students are outperforming Australian-born peers, while Aboriginal and Torres Strait Islander children are failing at four times the rate of non-Indigenous students.

Boys are also disadvantaged, with nearly twice as many starting high school functionally illiterate compared to girls. By Year 7, one in eight boys require remedial reading support.

Henderson criticised the government’s failure to implement promised reforms and the education minister’s lack of focus.

“Rather than prioritise students, Education Minister Jason Clare has become embroiled in a funding war with the states,” she said.