The deal will lift the Commonwealth’s contribution from 20 per cent to 25 per cent of the Schooling Resource Standard by 2034 and under the Better and Fairer Schools Agreement, will provide $3.5 billion in additional funding to Victorian public schools over the next decade.

The funding will support more individualised student support, evidence-based teaching practices and ongoing mental health support in schools.

Prime Minister Anthony Albanese said every child deserves a great education, no matter where they live or what their circumstances are.

“This is about opening the doors of opportunity wider for the next generation and making sure no child is left behind,” he said.

The agreement delivers more than $13 billion of additional Victorian Government funding for public schooling above the level of expenditure in 2026. This includes an additional $4.9 billion investment to increase Victoria’s share to 75 per cent of the SRS.

The Australian Education Union Victorian Branch, however, said that while it welcomed the certainty that the newly-inked funding deal brings, delaying part of Victoria’s contribution to full funding until 2031 is unfair to students, parents, and public education employees.

Branch president Justin Mullaly claimed the delay in signing, and the decision to back-end the deal, will short change Victorian public schools by hundreds of millions of dollars over the next few years.

“Funding delays have real consequences, and this needs to be addressed,” Mullaly said.

That said, the agreement will deliver billions of dollars of much needed extra funding through to 2034, the union leader acknowledged.

“With full funding, public schools will be able to employ more teachers and education support employees, reduce class sizes, boost wellbeing programs and ensure every student gets greater individual attention,” Mullaly said.

The Australian Principals Federation agreed that the proposed timeline means full funding remains years away.

“The challenges facing our schools are immediate,” Victorian branch president Andrew Cock told ABC News.

“It is essential that meaningful funding increases are delivered progressively, rather than schools having to wait until the end of this period to see the benefits.”

Victorian Premier Ben Carroll said only his party is backing the state’s teachers and students.

“This agreement means our students can continue to lead the nation in NAPLAN and families can be assured their child’s future is in the best hands,” he said.

The Victorian Bilateral Agreement ties the funding to reforms that help students catch up, keep up and finish school, including:

  • a Year 1 phonics check and Year 1 numeracy check to catch students falling behind;
  • individualised learning support such as small group learning;
  • reforms that support children’s wellbeing for learning;
  • initiatives to reduce workload so teachers and school leaders spend more time on teaching; and
  • improving teacher recruitment and retention.

Deputy Premier and Victorian Minister for Education Gabrielle Williams said the Government’s priority is that every child in the state can access a world-class education in a public school backed by full and fair funding.

“We will continue to do whatever is necessary for Victorian public schools to be the best in the nation, whilst ensuring our investments are sustainable,” she said.

The Federal Government now has long-term bilateral agreements with every state and territory, “putting every public school in the country on a path to full and fair funding”, it said.