Schools funding formula to be changed after review

The way independent schools receive government funding is to be overhauled after a fight between the sector and Turnbull Government.

But the changes, recommended by a Board of Review, won't take effect until the start of the 2020 school year.

The review of the government's socio-economic status (SES) funding confirmed the current system disadvantages lower fee paying non-government schools.

The recommendation will effectively mean funding will no longer be based on where parents live, but a direct measure of parental income.

It meant an elite school could be deemed more worthy of funding than a poorer inner-city school.

Mr Birmingham and cabinet colleagues had criticised the Catholic sector, in particular, that spoke out against the system.

"The report identifies with with recent data collection improvements, a direct measure of parental income would now be a more reliable way to determine a school's capacity to contribute to the recurrent costs of the school," Mr Birmingham said.

He said the delay in the changes would provide schools with certainty to plan and consult.

"It ensures there's significant funding growth for all school sectors," the minister said.

"We are committed to working with and consulting to ensure that if these recommendations are to be applied, they're applied in a fair, transparent, consistent way."

He said government schools would not be affected, and funding would continue to grow at 6.5 percent per student, per annum.