✦ Plain-English Summary

Australian Education Amendment (Direct Measure of Income) 2020

What it does

This bill changes how the federal government calculates school funding, moving away from a fixed "SES score" (based on socioeconomic status) to a "direct measure of income" approach. It gives the Minister more flexibility in how schools transition to the new funding formula, replacing the old 6-10 year transition period with a vaguer "transition years" timeframe.

Why it matters

Schools' federal funding allocations could shift significantly under the new income-based method rather than the old socioeconomic ranking system. This affects how much money individual schools receive, which flows through to teacher numbers, resources, and services available to students.

Key details

• When it kicks in: The day after Parliament gives it Royal Assent (essentially immediately)
• Affected schools: Government and non-government schools, with different transition rules for each type
• New definitions: The bill introduces a "CTC score" (determined by the Minister) to replace the old SES score system, but the actual details of how CTC works aren't spelled out in this amendment

Official Description

Amends the Australian Education Act 2013 to: introduce a new measure of income methodology for calculating a school community's capacity to contribute financially to a non-government school; enable adjustments to be made to the transition pathways of non-government schools to a nationally consistent Commonwealth share of the Schooling Resource Standard; and provide the authority and appropriation for the Commonwealth to make GST-inclusive payments where necessary.

Committee Referrals

Senate Education and Employment Legislation Committee; Senate Standing Committee for the Scrutiny of Bills

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.