Part 2: Payments for Specific Purposes
Education
In 2009‑10, the States will receive $19.4 billion in payments from the Commonwealth to support state education services, an increase of 64.4 per cent compared with the $11.8 billion the States will receive in 2008‑09.
The additional funding to the States includes $3.5 billion over five years for state education services as part of the COAG reform package agreed on 29 November 2008. This additional funding to the States includes:
- funding of $1.0 billion over five years in recurrent base funding for the National Schools SPP, including $412.0 million over five years from indexing the government schools component of the National Schools SPP each year using a more generous indexation arrangement, and $635.0 million over five years to align historic Commonwealth funding rates between primary and secondary government schools;
- funding of $1.1 billion over five years for the National Partnership on Low Socio‑economic Status School Communities to facilitate reforms to address the needs of disadvantaged schools;
- funding of $807 million in 2008‑09 for the legitimate additional costs of implementing the National Secondary Schools Computer Fund — this measure complements the Education Revolution — Improving our Schools — Digital Education Revolution measure previously announced; and
- funding of $550 million over five years for the National Partnership on Improving Teacher Quality that will address the significant challenges Australia faces in maintaining the quality of its teaching workforce, with a specific focus on professional development and support for principals.
The additional funding to the States also includes $14.7 billion over three years from 2008‑09 to improve capital infrastructure for the benefit of schools and their local communities, announced as part of the Nation Building and Jobs Plan on 3 February 2009.
From 1 January 2009, the Commonwealth has provided financial contributions to support state education services under the new National Schools SPP. This National SPP encompasses payments to the States for both government and non‑government schools.
The government schools component of the National Schools SPP replaces the following payments to the States which were paid until 31 December 2008:
- $1.2 million in 2008‑09 for government schools to provide supplementary assistance as general recurrent grants which can be applied to staff salaries, teacher professional development and general operational provisions in government schools;
- $250 million in 2008‑09 under targeted programs for government schools and joint, which provides assistance for: improving literacy, numeracy and education outcomes for educationally disadvantaged students; promoting the study of other languages; and assisting the transition from school to work; and
- $55 million in 2008‑09 under the Indigenous education strategic initiatives program, which provides recurrent funding to education providers in the pre‑school, school and vocational education and training sectors, as well as project‑based funding aimed at improving Indigenous education outcomes.
The non‑government schools component of the National Schools SPP incorporates the following existing payments:
- $3.0 billion in 2008‑09 to provide supplementary assistance as general recurrent grants to non-government schools; and
- $115 million in 2008‑09 under targeted programs for non‑government schools, which provides assistance for: improving literacy, numeracy and education outcomes for educationally disadvantaged students; promoting the study of other languages; and assisting the transition from school to work in non‑government schools.
Some payments under the former federal financial relations arrangements continue to be paid separately as National Partnership project payments.
Policy decisions included in this Budget that will be implemented through National Partnerships include up to $100 million for reward payments in 2010‑11 and 2013‑14 to States that achieve mutually agreed Year 12 or equivalent attainment rate targets for young people in their jurisdiction, as announced by COAG on 30 April 2009.
Table 2.51 provides information on payments to support state education services, including the new National Partnership payments and existing payments.
Table 2.51: Payments to support state education services
National Schools SPP
The Government will provide $52.4 billion over five years from 2008‑09 to the States to support schools under the National Schools SPP. This is an increase of $1.0 billion over the funding previously included in the forward estimates.
The National Schools SPP brings total government and non‑government schools support to around $42 billion from 2009 to 2012 (excluding Indigenous funding), compared to $34.1 billion in the previous schools agreement.
Table 2.52: Payments to the States for the National Schools SPP
Growth factor
The Intergovernmental Agreement defines the growth factor for the government schools component of the National Schools SPP as the product of:
- the growth in average government schools recurrent cost; and
- the growth in full‑time equivalent enrolment in government schools.
The growth factor for the non‑government schools component of the National Schools SPP will be determined in accordance with the Schools Assistance Act 2008.
In November 2008, the growth factor was estimated at 6.3 per cent per annum. The growth factor is currently estimated to be 6.1 per cent in 2010‑11. However, the payment for non‑government schools for 2009‑10 is provided for in the Federal Financial Relations Act 2009 and will not change from the estimate that was agreed by COAG in November 2008.
The Commonwealth will provide advances to the States in respect of the government schools component of the National Schools SPPs, based on estimates of the growth factor. Once outcomes data for each component of the growth factor is available, a balancing adjustment will be made to ensure that the States receive their correct entitlement.
National Partnership for Low Socio‑economic Status School Communities
The Commonwealth will provide $1.5 billion over seven years from 2008‑09 under the National Partnership Agreement on Low Socio‑economic Status School Communities. The objective of the National Partnership is to create sustained improvements in education outcomes in low socio‑economic status (SES) communities. The National Partnership will contribute to COAG's social inclusion and Indigenous disadvantage agendas through the identification of reforms and models of service delivery that achieve improved educational outcomes for low SES school communities.
The National Partnership aims to improve the learning, engagement, well‑being and education outcomes of students from low SES backgrounds, especially Indigenous students. The National Partnership will focus on the achievement of specific reforms which include:
- incentives to attract high-performing principals and teachers;
- adoption of best practice performance management and staffing arrangements that articulate a clear role for principals;
- changes to school operational arrangements which encourage innovation and flexibility;
- provision of innovative and tailored learning opportunities;
- strengthened school accountability; and
- new external partnerships with other schools, businesses or communities.
Table 2.53: Estimated payments for the National Partnership Agreement on
Low Socio‑economic Status School Communities
National Partnership on Improving Teacher Quality
The Commonwealth will provide $550 million under the National Partnership Agreement on Improving Teacher Quality. The National Partnership includes reforms to target critical points in the teacher 'lifecycle' to attract, train, place, develop and retain quality teachers and leaders in our schools and classrooms. These reforms will provide a platform for raising student performance and will also support other school reforms targeting low SES school communities and literacy and numeracy outcomes.
The National Partnership targets the following outcomes:
- attracting the best entrants to teaching, including mid‑career entrants;
- more effective training of principals, teachers and school leaders;
- developing teachers and school leaders to enhance their skills and knowledge throughout their careers;
- retaining and rewarding quality principals, teachers and school leaders; and
- improving the quality and availability of teacher workforce data.
Table 2.54: Estimated payments for the National Partnership Agreement on
Improving Teacher Quality
National Partnership on Literacy and Numeracy
The Commonwealth will provide $524 million over four years under the National Partnership Agreement on Literacy and Numeracy. The National Partnership supports reforms to drive accelerated improvements in literacy and numeracy. It will have a priority focus on primary-aged students at risk of falling behind, including Indigenous students. The reforms will contribute to literacy and numeracy outcomes identified in the National Education Agreement and the COAG target to halve the gap for Indigenous students in reading, writing and numeracy within a decade.
The National Partnership aims to deliver improved literacy and numeracy outcomes for targeted schools or school communities and students. Data from the National Assessment Program for Literacy and Numeracy and appropriate local data will be identified to measure literacy and numeracy outcomes for participating schools.
Table 2.55: Estimated payments for the National Partnership on Literacy and
Numeracy
National Partnership on Early Childhood Education
The Commonwealth will provide $957 million under the National Partnership Agreement on Early Childhood Education. The objective of the National Partnership is that by 2013 every child will have access to a pre‑school program in the 12 months prior to full‑time schooling. This program will be delivered by four‑year university qualified early childhood teachers for 15 hours a week, 40 weeks a year.
The reforms will mean all children have access to affordable, quality early childhood education in the year before formal schooling, with a focus on ensuring access for children from Indigenous communities.
Table 2.56: Estimated payments for the National Partnership on Early
Childhood Education
National Partnership on Indigenous Early Childhood Development
The Commonwealth will provide $253.9 million under the Indigenous Early Childhood Development National Partnership. The National Partnership provides a commitment between all levels of government to reduce the gap in developmental outcomes between Indigenous and non‑Indigenous children by improving mortality rates and access to early childhood education. The National Partnership will contribute to the outcomes of Indigenous children participating in quality early childhood education and development and child care services, Indigenous people using parent and family support services, Indigenous children's health programs, and antenatal, sexual and reproductive health programs.
The outputs of the National Partnership include:
- a minimum of 35 Children and Family Centres established in urban, regional and remote areas with high Indigenous populations and disadvantage;
- the provision of early learning, childcare and parent and family support services to Indigenous families at or through each of the Children and Family Centres; and
- the provision of antenatal care services targeted at young Indigenous women, sexual and reproductive health services for Indigenous teenagers, and maternal and child health services for Indigenous children and their mothers.
Table 2.57: Estimated payments for the National Partnership for Indigenous
Early Childhood Development
National Partnership on Youth Attainment and Transitions
The Commonwealth will provide up to an additional $100 million over six years, including up to $50 million in 2013‑14, to the States for a National Partnership on Youth Attainment and Transitions that will also support the delivery of a Compact with Young Australians.
The National Partnership supports the bring forward from 2020 to 2015 of COAG's Year 12 or equivalent attainment rate target. The reward funding of up to $100 million in the National Partnership will be tied to the following specific outcomes:
- improved retention of young people in Year 10 and Year 12 in 2010; and
- improved Year 12 or equivalent attainment rates in 2012, consistent with the agreed trajectory towards the national 90 per cent Year 12 or equivalent attainment rate by 2015.
Determination of reward payments will be assessed against agreed differential target rates across jurisdictions. This will include recognition of current achievement and increases over current baseline Year 12 or equivalent attainment rates.
Table 2.58: Estimated payments for the National Partnership for Youth
Attainment and Transition
Other National Partnership payments for education
The following existing payments will continue to be paid from 1 July 2009 as National Partnership payments under the new federal financial relations framework.
Building the Education Revolution
The Commonwealth will provide $14.7 billion over three years from 2008‑09 to improve capital infrastructure for the benefit of schools and their local communities in Australia. This measure is part of the Nation Building and Jobs Plan announced by the Government in February 2009.
Table 2.59: Estimated payments to the States for Building the Education
Revolution
Digital Education Revolution
The Commonwealth will provide $2.1 billion to the States over five years to implement the Digital Education Revolution. A National Secondary School Computer Fund has been established to provide grants of up to $1 million to eligible secondary schools to assist them in providing new or upgraded information and communication technology to students in Years 9 to 12.
Table 2.60: Estimated payments to the States for the Digital Education
Revolution
Trade Training Centres in Schools
The Commonwealth will provide $1.3 billion over five years to implement the Trade Training Centres in Schools Program. The program will provide facilities to enhance vocational education opportunities for students in Years 9 to 12 in every government and non‑government secondary school.
Table 2.61: Estimated payments to the States for Trade Training Centres in
Schools
Quality On-The-Job Workplace Learning
The Commonwealth will provide $106 million to the States over five years as part of the quality on-the-job workplace learning initiative to coordinate work placements for school students participating in vocational education and training.
Table 2.62: Estimated payments to the States for Quality On-The-Job
Workplace Learning
National Solar Schools Plan
The Commonwealth will provide $260 million to the States to help primary and secondary schools around the country take practical action to save energy and water while cutting their utility bills.
The National Solar Schools Plan offers grants of up to $50 000 (GST exclusive) to install solar and other renewable power systems, rainwater tanks and a range of energy efficiency measures such as energy efficiency lighting, skylights, ceiling fans, insulation, sensors, automatic doors and external window fittings (for example double glazing, awnings and shutters).
Table 2.63: Estimated payments to the States for the National Solar Schools
Plan
Secure Schools Program
The Commonwealth will provide up to $20 million over four years for the Secure Schools Program to assist at-risk religious, ethnic and secular schools meet their particular security needs.
Table 2.64: Estimated payments to the States for the Secure Schools Program
Skills and workforce development
In 2009‑10, the States will receive $1.7 billion in payments from the Commonwealth for skills and workforce development‑related services, an increase of 25.3 per cent compared with the $1.4 billion the States will receive in 2008‑09.
The additional funding to the States includes $45 million over five years for state skills and workforce development-related services as part of the COAG reform package agreed on 29 November 2008. The additional funding to the States includes:
- $36.7 million over five years in recurrent base funding for the National Skills and Workforce Development SPP using a more generous indexation arrangement; and
- a $8.5 million package in 2008‑09 for the TAFE Fee Waivers for Childcare Qualifications National Partnership.
The additional funding to the States also includes $200 million towards positioning Technical and Further Education (TAFE) infrastructure for tomorrow's challenges to revitalise teaching and learning spaces in TAFE institutes and other public providers, to respond to areas of current and expected future demand as part of the Nation Building Package announced by the Australian Government on 12 December 2008.
From 1 January 2009, the Commonwealth has provided a financial contribution to support state skills and workforce development-related services under the new National Skills and Workforce Development SPP. This new National SPP incorporates new indexation arrangements and replaces the following existing payments made up to 31 December 2008:
- $642 million in funding previously provided under the Skilling Australia's Workforce Agreements, excluding payments that have been subsumed under the National Training System Commonwealth own‑purpose expense;
- COAG agreed that funding of $47.4 million annually (plus indexation) for management of the National Training System be quarantined from the agreement and that training ministers and senior officials monitor and advise on how this funding is allocated.
Table 2.65 provides information on all payments to the States to support state skills and workforce development-related services.
Table 2.65: Payments to support state skills and workforce development
services
National Skills and Workforce Development SPP
The Government will provide $6.1 billion over five years from 2008‑09 to work towards increasing the skill levels of all Australians, including Indigenous Australians. The 2009‑10 base funding will be provided on an on‑going basis and indexed from 1 July 2010 by a growth factor.
As part of the related National Agreement for Skills and Workforce Development, each State will oversee the delivery of publicly funded training within its jurisdiction, ensuring the effective operation of the training market, including in relation to market information.
The Commonwealth and the States will also have joint responsibility to deliver some outcomes under the agreement, including a nationally consistent system of teaching standards, the development and maintenance of a national curriculum, and the development of policy and reform directions to support the achievement of Indigenous education outcomes.
Table 2.66: Estimated payments for the National Skills and Workforce
Development SPP
Growth factor
The Intergovernmental Agreement defines the growth factor for the National Skills and Workforce Development SPP as the product of :
0.85 x wage cost index one + 0.15 x wage cost index six.
In November 2008, the growth factor was estimated at 2.5 per cent per annum. The growth factor is estimated to be 1.9 per cent in 2010‑11. The fall in the growth factor is due to a decrease in both wage cost indices.
National Partnership on Productivity Places Program
The Productivity Places Program is part of the Government's Skilling Australia for the Future initiative and aims to reduce skills shortages and increase the productivity of industry and enterprises. The National Partnership Agreement on Productivity Places Program is a component of the Productivity Places Program.
The program aims to deliver up to 557,556 course enrolments and 402,881 qualification commencements. The National Partnership includes the additional 15,000 jobseeker places announced by the Commonwealth on 10 September 2008, with additional resourcing of $45.5 million in 2008‑09.
Funding under the National Partnership requires 50/40/10 cost sharing across the Commonwealth, States and private sources.
The Commonwealth will provide data to Skills Australia to assist in identifying industries, occupations and regions with skill shortages. Additionally, the Commonwealth will work in conjunction with the States to ensure the outcomes of the National Partnership are being met effectively. The States will have responsibility for implementing and managing the National Partnership.
Table 2.67: Estimated payments for the Productivity Places Program
National Partnership on TAFE fee Waivers for Childcare Qualifications
The National Partnership Agreement on TAFE Fee Waivers for Childcare Qualifications provides $8 million to remove fees for the diploma and advanced diploma of children's services courses delivered at TAFE institutions, or other government VET providers.
This agreement will assist in meeting the objectives of the National Partnership Agreement on Early Childhood Education, agreed by COAG on 29 November 2008.
Table 2.68: Estimated payments for the National Partnership on TAFE Fee
Waivers for Childcare Qualifications
Better TAFE Facilities
The Commonwealth will provide $200 million to the States in 2009‑10 towards improving infrastructure in TAFE facilities. These payments are part of the overall $500 million being invested under the Teaching and Learning Capital Fund for Vocational Education and Training announced as part of the Nation Building Package on 12 December 2008.
Table 2.69: Estimated payments to the States for better TAFE facilities
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