National Report on Schooling in Australia 2010

Funding Australia’s schools

8.5 Capital expenditure

State and Territory capital expenditure for government schools

Table 8.9 shows that capital expenditure by State and Territory governments in government schools was $7.6 billion in 2010 (the 2009–10 financial year). 

This table combines funding provided from the Australian Government as well as State and Territory sourced funding. It should be noted that it is no longer possible to separate this funding following the Australian Government’s decision in 2009 to amalgamate the prior specific purpose capital funding into a broadbanded recurrent specific purpose payment under the Intergovernmental Agreement (IGA) on Federal Financial Relations.
 
As Table 8.9 illustrates, there has been an increasing level of capital expenditure over the past five years. This is an increase of over 400 per cent over the five-year period 2005–06 to 2009–10.
The increase in capital expenditure reflects both:
  • the Australian Government’s significant injection of capital funds in recent years under the Investing in Our Schools Program, Building the Education Revolution (BER) and the Digital Education Revolution National Partnership. The BER program is part of the government’s economic stimulus package. (Subject to new capital initiatives being introduced it can be expected that there would be a reduction in overall capital funding in the next few years as funding under the economic stimulus package is exhausted. The National Partnership Agreement on the Nation Building and Jobs Plan expires on 31 December 2012.)

  • specific initiatives by various State and Territory governments to invest in school infrastructure. 

Capital funding and expenditure will, by their very nature, reflect various growth cycles of enrolments generally and more specifically in growth regions and corridors in a State or Territory as well as having regard to the age and condition of existing capital stock. By contrast, changes in recurrent expenditure will be relatively smooth. 

 

Table 8.9              Capital expenditure by State and Territory governments in government schools,
                               Australia, 200506 to 200809 financial years (accrual basis) ($'000)

Financial year

 

  NSW

  Vic.

  Qld

  SA

  WA

  Tas.

  NT

  ACT

 Australia

2005–06

 

395,505

398,582

404,517

47,498

164,770

30,134

22,484

23,275

1,486,765

2006–07   462,846 552,567 484,447 46,461 321,698 13,487 28,579 40,392 1,950,477

2007–08

 

486,577

476,513

472,732

75,421

314,295

23,118

48,675

71,133

1,968,464

2008–09

 

607,518

521,230

668,141

50,616

269,326

38,896

44,223

92,504

2,292,453

2009–10   2,567,386  1,269,900  1,977,011  488,650  690,849  223,232  154,695  199,437  7,571,161

 

Note: Figures include Australian Government capital grants contributions.

Sources: MCEECDYA, National Schools Statistics Collection, 2010; National Report on Schooling in Australia, 2006–09

See also Additional Statistics, Table 49

 

Australian Government capital funding

Table 8.10 provides a summary of Australian Government capital funding in 2010. 

The Specific Purpose program element was rolled into the National Schools Specific Purpose Payment for government schools in 2009 but continues as a separate program for the non-government sector. The government component, reflected in the following table, is an annual funding determination of this program, notwithstanding its absorption into the broadbanded recurrent Specific Purpose Payment. It can be used flexibly by jurisdictions.
 
There are also National Partnership funded programs and the Nation Building and Jobs Plan, which incorporate substantial programs of a capital nature. The Building the Education Revolution, Trade Training Centres and Digital Education Revolution Australian Government capital funded programs are appropriated under the Federal Financial Relations Act 2009 and expended by States and Territories through both recurrent and capital accounts based on the nature of the expenditure and the capitalisation thresholds that apply.
In the government sector, the most common types of work undertaken and facilities provided through Australian Government capital funding were the upgrading and/or provision of new schools, general-purpose classrooms, specialist facilities and staff administration and amenities areas.
As was the case in 2009, a number of projects funded by the Australian Government were completed both physically and financially in Catholic schools in 2010. The most common types of work in both primary and secondary schools were the construction or refurbishment of classrooms and specialist facilities such as art, performing arts, technology, library, science and music/drama areas. Capital funding also contributed to the provision of new schools.
In the independent sector, the capital projects completed physically and financially in 2010 included classrooms, computer rooms, students’ amenities, boarding facilities and staff administration areas. 

 

Table 8.10             Australian Government specific purpose payments for schools by government/non-government, capital,
Australia, 2009–10 financial year (accrual basis) ($'000)
 

 

 

 

Australia

Government schools

 

Capital expenditure

 

Capital allocation(a)

 

Total capital government schools

 

Closing the Gap payments

 

•  Teacher housing

5,670

Total Closing the Gap

5,670

National Partnership payments

 

•  Digital Education Revolution(b)

174,196

•  Trade Training Centres in Schools(b)(d)

267,377

Total National Partnerships

441,573

Total National Partnerships, Closing the Gap & capital – government schools

447,243

Nation Building & Jobs Plan

 

•  Building the Education Revolution(b)

6,432,025

Total Nation Building & Jobs Plan

6,432,025

Total Nation Building & Jobs Plan, National Partnerships, Closing the Gap & capital – government schools

6,879,268

Non-government schools

 

Capital expenditure

 

Capital allocation(b)

138,268

Total capital non-government schools

138,268

Closing the Gap payments

 

•  Teacher housing

412

Total Closing the Gap

412

National Partnership payments

 

•  Digital Education Revolution(b)

82,670

•  Trade Training Centres in Schools(b)(d)

54,245

Total National Partnerships

136,915

Total National Partnerships, Closing the Gap & capital –
non-government schools

275,595

Nation Building & Jobs Plan

 

•  Building the Education Revolution(b)

2,946,492

Total Nation Building & Jobs Plan

2,946,492

Total Nation Building & Jobs Plan, National Partnerships, Closing the Gap & capital – non-government schools

3,222,087

Government and non-government schools

 

Total capital(c)

 

 

138,268

Total Closing the Gap

 

6,082

Total National Partnership payments

 

578,488

Total Nation Building & Jobs Plan

 

9,378,517

Total

 

 

10,101,355


(a)
From 1 January 2009 these payments are included in the National Schools SPP.

(b) Reporting period 1 July 2009–30 June 2010

(c) This figure is for the non-government sector only. As from 1 January 2009 the government component is included in the National Schools SPP.

(d) The Trade Training Centres in Schools Program operates as a ’deemed’ National Partnership through ’Overarching Funding Agreements’ with all government and non-government education authorities. It is anticipated that a formal National Partnership will be negotiated and implemented from early 2013.
Sources: Data are extracted from the Final Budget Outcome (FBO). The non-government capital grants figure of $138.268 m is sourced from Australian Government DEEWR.
See also Additional Statistics Table 60