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The 2025-26 Budget includes the Australian Government’s additional $407.5 million investment for states and territories that have signed Better and Fairer Schools Agreement 2025-2034 – Full and Fair Funding Bilateral Agreements.
Through these agreements the Commonwealth will increase its share of the Schooling Resource Standard (SRS) to 25% by 2034, putting public schools in those jurisdictions on track to be funded to 100% of the SRS.
The funding will be tied to reforms to help students catch up, keep up and finish school.
Jurisdictions will also reduce their use of the 4% provision for indirect expenditure to zero by 2034, which allowed them to claim things like capital depreciation. This will ensure that more money is available to public schools to support students and their teachers.
The 2025-26 Budget includes an estimated $135.7 billion over 2025–26 to 2028–29 in recurrent school funding. In 2025, the Government is providing $31.1 billion in recurrent funding for all schooling sectors.
*Note: Based on signed bilateral agreements in the week of 17 March 2025, due to lead times required to consolidate/finalise the Budget update.
The Australian Government and Queensland Government signed the Heads of Agreement for the Better and Fairer Schools Agreement on Monday 24 March 2025, and the funding for Queensland will be included in the Pre-election Economic and Fiscal Outlook.
Recurrent funding for schools resources
Early Childhood Education and Care
The Australian Government is providing $2.5 million in additional support to families and early childhood education and care (ECEC) providers affected by ex-Tropical Cyclone Alfred.
An ex-Tropical Cyclone Alfred support payment of $10,000 will be available for Child Care Subsidy (CCS) approved services that:
- Are located in a Local Government Area covered by a CCS period of emergency in relation to ex Tropical Cyclone Alfred
- closed, or partially closed, for 8 days or more during the period of emergency, and
- agree to waive families’ gap fee payments while closed during the emergency.
The ex-Tropical Cyclone Alfred support payment will help ensure families and ECEC providers are not financially disadvantaged due to services that had to closed for an extended period due to the cyclone’s impacts.
The payment is in addition to the CCS period of emergency arrangements which help services remain viable when children are prevented from attending care.
ex-Tropical Cyclone Alfred fact sheet
Schools
The Australian Government will invest $7.01 million in science, technology, engineering and mathematics (STEM) initiatives to support better educational outcomes for children and students.
The Australian Government will invest a further $35.1 million in two continuing programs to support First Nations students.
- $33.6 million to support the Clontarf Foundation
- $1.5 million to the MultiLit program under the Scaling Up Proven Primary Reading Programs measure.
First Nations students fact sheet
Higher education
The Australian Government will provide $48.4 million over 4 years to deliver:
- 100 new medical places a year from 2026, increasing to 150 from 2028, with a focus on primary care outcomes.
- Demand-driven medical places for First Nations medical students from 2026.
2025–26 Education Portfolio Budget Statements
The 2025-26 Department of Education Portfolio Budget Statements (PBS) provide information on the proposed allocation of funds to achieve government outcomes. They include budget statements for the department as well as entities working under the portfolio.
The statements provide information to assist parliament to understand the purpose of each outcome. The Education Portfolio Budget Statements (PBS) were tabled on 25 March 2025.
