Equity and excellence in education

In our article, generative artificial intelligence: impact on equity and excellence in Australian schools, we discussed the need for increased funding in the 2025 Schools Resourcing Standards (SRS) and the National School Reform Agreement to assist in overcoming educational barriers faced by Indigenous students and those from low socio-economic and regional areas.

On the 31 July 2024, the Federal Minister for Education announced the Australian Government’s new funding agreement - Better and Fairer Schools Agreement (BFSA) - for the period 2025 to 2034. According to the Federal Minister, reforms, targets and transparency are at the centre of the agreement and collaboration occurred with state and territory governments, First Nations education representatives and non-government peak education bodies. The agreement requires states and territories (jurisdictions) to adopt specific reforms and measures to improve student outcomes to be eligible to receive increased federal funding for schools.

The agreement states the Federal Government will increase its share of the SRS from 20 per cent to up to 22.5 per cent for all government schools by no later than 2029, except for Northern Territory schools. In these schools, the Federal Government will provide 40 per cent of SRS funding.

The key reforms and targets for schools in the agreement include:

  • Year one phonics check and early years of schooling numeracy check to identify students who need additional help
  • Evidence-based teaching and targeted and intensive supports such as small-group or catch-up tutoring to help students who fall behind
  • Greater wellbeing support for learning and engagement, including through counsellors, wellbeing coordinators and mental health workers
  • Initiatives that help attract and retain teachers and school leaders, including rewarding and recognising experienced teachers to work in schools which need additional support
  • Providing access to high-quality and evidence-based professional learning for teachers and school leaders and providing quality-assured curriculum resources, developed in partnership with the teaching profession
  • Increasing the proportion of students leaving school with a Year 12 certificate to 83.8 per cent by 2030, from 76.3 per cent in 2022
  • Reducing the proportion of students in the National Assessment Program - Literacy and Numeracy (NAPLAN) ‘needs additional support’ proficiency level for reading and numeracy by 10 per cent and increasing the proportion of students in the ‘strong’ and ‘exceeding’ proficiency levels for reading and numeracy by 2030
  • Increasing the student attendance rate to pre-Covid-19 levels of 91.4 per cent, by 2030, from 88.6 per cent in 2023
  • Increasing the engagement rate (completed or still enrolled) of initial teacher education students to 71 per cent by 2035, from 61 per cent in 2022
  • Increasing the proportion of Aboriginal and Torres Strait Islander people (age 20-24) attaining a Year 12 or equivalent qualification to 96 per cent by 2031, up from 68.4 per cent in 2021, which reflects the target in the national agreement on closing the gap.

To date two Australian jurisdictions - the Northern Territory and Western Australia - have signed the BFSA. Other jurisdictions believe the increase in funding is insufficient to provide an equitable public schools system.

Some have expressed their support for an increase of 5 per cent in funding rather than the 2.5 per cent currently offered by the Federal Government. The Federal Minister has stated that jurisdictions must agree to the proposed 2.5 per cent increase by the end of September, or they risk losing $16 billion in additional Commonwealth funding.

While the BFSA improves funding transparency it does not specify exact funding amounts, or the schooling resource standard used by the Federal Government for jurisdictions. State and territory funding will be determined through bilateral agreements with the Federal Government, outlining specific actions to achieve the reforms and targets.

Moving forward, we anticipate ongoing negotiations between the Federal Government and individual jurisdictions. Hopefully, the negotiations will result in an appropriate level of funding to support initiatives that can close achievement gaps, provide targeted interventions for students who need additional support, and offer programs that promote diversity and inclusion.


The views and opinions expressed in this publication are of the BDO Centre for Education, and do not necessarily reflect the official position of BDO or individual members of the BDO Centre for Education.

About the BDO Centre for Education

The BDO Centre for Education (the Centre) is dedicated to advancing education in Australia by fostering collaboration among experts, stakeholders, and sectors within the field. The Centre’s mission is to promote excellence and equity, enabling all Australians to become confident and creative individuals, successful learners, and active and informed community members. Through critical analysis, evidence-based solutions, and informed advocacy, we strive to address the challenges facing education in the 2020s as outlined in the Alice Springs (Mparntwe) Education Declaration (2019). Our commitment to knowledge dissemination, outreach and inclusivity drives us to shape public opinion and advocate for evidence-based education policies, creating a stronger, more inclusive educational landscape for future generations.  

The committee comprises of ten members who have served in various roles as leaders, stewards, managers, or advisers a diverse range of settings across the education sector over many decades. These individuals remain active in the education sector.  

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