National Report on Schooling in Australia 2009

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 $2.3 billion in 2009 (the 2008–09 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 broad banded 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 four years. This is almost a 55% increase over the four years, averaging almost 14% a year.

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, the Building the Education Revolution and Digital Education Revolution National Partnerships. The Building the Education Revolution is also part of the Government’s economic stimulus package.

    It can be expected that the capital funding under the economic stimulus package will diminish in the coming years, which should result in a reduction in overall capital funding.

  • 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

 

Note: Figures include Australian Government capital grants contributions.

Sources: MCEECDYA, National Schools Statistics Collection, 2009; National Report on Schooling in Australia, 2006–08

See also Additional Statistics, Table 35

 

Australian Government capital funding

Table 8.10 provides a summary of Australian Government capital funding in 2009.

The Specific Purpose program element was rolled into 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 table, is an annual funding determination of this program, notwithstanding it is absorbed into the broad banded recurrent Specific Purpose Payment in 2009 which can be used flexibly by jurisdictions.

There are also National Partnership funded programs and the Nation Building and Jobs Plan, which are substantially of a capital nature. The Building the Education Revolution and Digital Education Revolution Australian Government capital funded programs are appropriated 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.

In 2009, a number of projects funded by the Australian Government were completed both physically and financially in Catholic schools. 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 and/or upgrading of new schools.

In the independent sector, the capital projects completed physically and financially in 2009 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, 2008–09 financial year (accrual basis) ($'000)

 

 

 

Australia

Government schools

 

Capital expenditure

 

Capital allocation(a)

264,241

Total capital government schools

264,241

National Partnership

 

National Partnership payments

 

•  Digital Education Revolution(d)

738,415

•  Trade training centres in schools(b)

44,369

Total National Partnership

782,784

Total National Partnership & capital – government schools

1,047,025

Nation Building & Jobs Plan

 

•  Building the Education Revolution(b)

655,284

Total Nation Building & Jobs Plan

655,284

Total Nation Building & Jobs Plan, National Partnership, & capital government schools

1,702,309

Non-government schools

 

Capital expenditure

 

Capital allocation(d)

161,705

Total capital non-government schools

161,705

National Partnership

 

National Partnership payments

 

•  Digital Education Revolution(d)

423,352

•  Trade training centres in schools(b)

51,495

Total National Partnership

474,847

Total National Partnership & capital – non-government schools

636,552

Nation Building & Jobs Plan

 

•  Building the Education Revolution(b)

356,545

Total Nation Building & Jobs Plan

356,545

Total Nation Building & Jobs Plan, National Partnership, & capital non-government schools

993,097

Government and non-government schools

 

Total capital

 

 

425,946

Total National Partnership payments

 

1,257,631

Total Nation Building & Jobs Plan

 

1,011,829

Total

 

 

2,695,406

 

(a) Reporting period 1 July31 December 2008. From 1 January 2009 these payments are included in the National Schools SPP.

(b) Reporting period 1 January 200930 June 2009

(c) Reporting period 1 July–31 December 2008. From 1 January 2009 these payments are included in the National Schools SPP. The Indigenous Education Strategic Initiatives Programme (IESIP) and the Indigenous Education Direct Assistance (IEDA) Programme terminated in 2004. They were replaced by the Indigenous Education Programs. Data provided are for grants to preschools, schools and higher education institutions or TAFEs.

(d) Reporting period 1 July 200830 June 2009

Source: Australian Government DEEWR. All data are from 200809 Financial Budget Outcome except for capital expenditure, which is from the Steering Committee for the Review of Government Service Provision, Report on Government Services, 2011

See also Additional Statistics, Table 47