Public schools to lose billions if Albanese government fails to remove Coalition-era loophole

Advocates say clause introduced by Morrison government has sapped $13bn from public schools, with $26bn set to be lost by 2029 if Labor doesn’t honour election promise

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Public schools would lose billions of dollars if the federal government breaks an election promise to remove a Coalition-era loophole from funding agreements between the commonwealth and the states.

The loophole, introduced by the former Morrison government in 2018, allows states and territories to claim up to 4% of the total Schooling Resource Standard (SRS) on non-school expenditures such as public transport, capital depreciation, regulatory bodies and preschool.

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