Needs-Based Funding Is Working - Here's the Evidence

It is one thing to argue that needs-based funding should work in theory. It is another to show that it already does. Increasingly, the Australian evidence points the same way: where these reforms are delivered properly, classrooms change for the better.

Targeted teaching in practice

In 2015 the Grattan Institute documented how targeted teaching and the smart use of data were lifting student learning in Australian schools. Using adaptive and diagnostic testing, teachers pinpointed exactly where each student was and taught to that point, tracking progress continually. Teachers reported students were more engaged and better behaved. One trial school in a disadvantaged area was on track to lift the proportion of early-primary students meeting learning benchmarks by 20 percentage points.

The economics are compelling

The OECD has quantified what is at stake nationally. Equipping all Australian high-school graduates with the basic skills needed for the global economy by 2030 would be worth the equivalent of adding 2.8 per cent to GDP, roughly a $44 billion expansion of today's economy. Set against annual Commonwealth school spending of about 1 per cent of GDP, that is an extraordinary return on investment.

Why delivery matters

The caveat in all of this is "properly delivered". Funding only works when it actually reaches the classroom and is spent on evidence-based programs, not used to prop up state budgets. That is why transparency and accountability sit alongside the dollars in Your Child. Our Future: parents deserve to see that the investment is translating into results. The evidence says that when it does, it works.

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Dr. Callum Finnerty

Schools Funding Analyst

Callum holds a PhD in education economics and has advised state education departments on needs-based funding models. He breaks down the numbers behind Gonski and what they mean for ordinary schools.

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