Two more states have signed on to the federal government’s school funding scheme.

Victoria and South Australia have joined the federal government’s Better and Fairer Schools Agreement (BFSA), a deal that will increase the Commonwealth’s share of public school funding from 20 to 25 per cent. 

States must also raise their contributions to 75 per cent, finally meeting the minimum funding levels recommended by the 2012 Gonski review.  

“Today is about a principle that has driven me my whole life. No-one held back, and no-one left behind. Making sure that every child in government schools gets the support they need to thrive,” Prime Minister Anthony Albanese said in a recent address.  

Western Australia, Tasmania, the Northern Territory (where the federal government will cover 40 per cent of costs) and the Australian Capital Territory are already on board.

Queensland and New South Wales remain the last holdouts.  

The funding boost will be tied to reforms, including phonics and numeracy checks and efforts to lift poor NAPLAN results. 

“It's not a blank cheque. I want this money to get results,” Education Minister Jason Clare said.  

A key change will scrap an accounting loophole that let states count non-school expenses, such as capital works, toward their education spending. 

“Importantly, this new agreement means accounting practices - like capital depreciation - can no longer be counted as education investment. Instead, every dollar of funding will go into helping children learn,” Mr Albanese said.  

While public schools have been underfunded for years, many independent and Catholic schools receive more than they need. The new scheme aims to see overfunded private schools brought back in line by 2029.  

The Australian Education Union (AEU) called the deal “life-changing”. 

“This heralds a major breakthrough on full and fair funding negotiations for public schools,” AEU federal president Correna Haythorpe said.  

If remaining states sign on, billions of dollars will flow into public schools under a deal set to run until 2034.

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