School funding boost reignites fiery state debate

School children wave Australian flags
The federal government has committed to fully fund every Australian public school. -AAP Image

A third jurisdiction has signed on to a public school funding boost, lighting a fire beneath the feet of politicians in more populous states, who are holding out for a better deal.

Tasmania's public schools will be fully funded by 2029 after its state government accepted the Commonwealth's new education agreement.

The federal government will lift its commitment to 22.5 per cent of the Schooling Resource Standard - which estimates how much total public funding a school requires to meet its students' needs - while Tasmania will fund the remaining 77.5 per cent.

BREAKING: Today we'll sign an agreement to fully fund all Tassie public schools.— Jason Clare MP (@JasonClareMP) September 24, 2024

The ACT is the only jurisdiction where public schools are completely funded, but Prime Minister Anthony Albanese says this latest announcement is a stepping stone to change.

"I want to make sure that every student in Australia, no matter where they live and learn, receives every opportunity," he said.

"This is a national priority that can only be delivered when the Commonwealth and state and territory governments work in partnership."

Tasmania, WA and the NT have signed up to the Commonwealth school funding agreement. (Bianca De Marchi/AAP PHOTOS)

The federal government has committed to fully fund every Australian public school by offering increasing its contribution to 40 per cent of the Schooling Resource Standard in the Northern Territory and 22.5 per cent everywhere else.

Though Tasmania, WA and the NT have agreed, every other jurisdiction has urged the federal government to further lift its proposal to 25 per cent.

If the hold-outs don't sign on to the offer before the end of September, the current deal will roll over and the federal government's funding will stay at 20 per cent of the Schooling Resource Standard while the states' contribution remains at 75 per cent - maintaining a five per cent shortfall.

NSW Deputy Premier and Education Minister Prue Car has previously said her state cannot roll out critical interventions at scale without more funding.

Her Victorian counterpart Ben Carroll in mid-September said he would reject the federal government's offer and has hit out at its refusal to grow public school funding when it supports private schools to 80 per cent of the Schooling Resource Standard.