Full Breakdown
Victorian Schools Secure Long-Term Funding Deal, but Timeline Remains Staged
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Core Event: Signing of the Bilateral Funding Agreement
On October 22, 2026, the Victorian Labor government and the federal Labor government signed a bilateral agreement to bring Victorian public schools to full funding under the 2012 Gonski School Resource Standard (SRS). The deal raises the Commonwealth share from 20 % to 25 % by 2034 and obliges Victoria to fund 75 % of the SRS, with full funding targeted for 2031. The state calls it the “biggest investment in schools ever.”
Background & Context
Victoria has funded 70 % of the SRS, leaving 30 % to the Commonwealth. The Gonski review recommended a 50-50 split, but the state delayed its 75 % commitment from a 2028 target to 2031, a shift the *The Age* said cost schools $2.4 billion in foregone funding. The new deal adds $3.5 billion in Commonwealth funding and more than $13 billion in Victorian spending above 2026 levels.
Data & Statistics
- Commonwealth contribution: an additional $3.5 billion over the next decade, rising to 25 % of the SRS by 2034.
- Victorian contribution: $13.6 billion (including a $4.9 billion boost to reach 75 % of the SRS).
- Full funding milestone: scheduled for 2031, with a provision to bring the 75 % target forward to 2029 if budget efficiencies are achieved.
- Current shortfall: schools receive 70 % of the SRS; the deal lifts the state share to 75 % while the Commonwealth share remains at 20 % until the phased increase.
Criticism & Opposition
AEU president Andrew Cock warned that “the challenges facing our schools are immediate” and urged progressive funding increases rather than waiting until the end of the period. The Australian Principals Federation cautioned that the timeline leaves full funding years away, potentially limiting immediate improvements to infrastructure and programs.
Verbatim Quotes
- “When you've got 90 kids running around and you've got half your playground fenced off, it's pretty frustrating,” — Mr Dunn
- “ Mr Carroll said: "If we can bring forward the timeline and meet the 75 per cent earlier, we will.” — Victorian Premier Ben Carroll
- “School leaders and school councils should not be made to feel responsible for passing government funding shortfalls on to parents,” — Ms McHardy, Parents Victoria chief
- “This agreement means our students can continue to lead the nation in NAPLAN and families can be assured their child’s future is in the best hands,” — Victorian Premier Ben Carroll
- “With full funding, public schools will be able to employ more teachers and education support employees, reduce class sizes, boost wellbeing programs and ensure every student gets greater individual attention,” — Justin Mullaly, Victorian branch president
Conflicting Reports & Gaps
Sources differ on the earliest possible date for full funding. *EducationHQ* notes a provision to bring the 75 % contribution forward to 2029 if efficiencies are realised, while *The Age* and *theeducatoronline* maintain 2031 as the target, with Commonwealth funding only reaching 25 % by 2034. No source provides a definitive schedule for when the Commonwealth’s 25 % share will be fully realised, leaving a gap in understanding the complete timeline. Specific allocations for infrastructure repairs—such as the pothole-filled basketball court at Pembroke Primary School—remain unspecified.
What’s Next
The Victorian government will seek budget efficiencies to potentially advance the 75 % target to 2029. A further announcement on November 28 (the scheduled state election) is expected to detail any adjustments to the funding timeline and related reforms for integrity and anti-corruption agencies.