The Albanese Labor Government is building a stronger and fairer education system from early education to school education and in higher education.
The Government knows that every stage of education is vital, because we need to give the next generation of Australians the best start in life, and the strongest foundation for success. The Budget continues the Government's significant education reform agenda which includes:
- Cutting the cost of early education and care for around 1 million families and building a universal early childhood education and care system.
- Delivering full and fair funding for public schools attended by around 2.6 million students.
- Cutting student debt by a further 20 per cent for 3 million Australians and making the repayment system fairer.
The Budget builds on the Government's significant education reform agenda by making important investments to help families and support students and teachers.
Fully Funding Australian Public Schools
The Albanese Labor Government is putting all public schools in Australia on a path to full and fair funding.
The 10-year Better and Fairer Schools Agreement will see the Commonwealth increase its contribution to the Schooling Resource Standard to put every public school on a path to receive full funding.
The Government will provide $407.5 million over four years from 2025-26 (and $7.2 billion from 2029-30 to 2035-36) to jurisdictions that have already signed updated Better and Fairer Schools Agreement (Full and Fair Funding 2025 - 2034) bilateral agreements.
The Government is finalising bilateral agreements with other jurisdictions.
This isn't a blank cheque. This funding is tied to reforms to help students catch up, keep up and finish school, including:
- Small group tutoring.
- Year 1 phonics and early years numeracy checks.
- More individualised support for students.
- More mental health support.
- More support to attract and retain teachers.
Ex-Tropical Cyclone Alfred - Additional Supports for Families and Providers
The Government has activated $2.5 million in additional support for families and early childhood education and child care providers affected by ex-Tropical Cyclone Alfred.
A $10,000 Ex-Tropical Cyclone Alfred Support Payment will be available for Child Care Subsidy (CCS) approved early childhood education and care services who:
- Are located where a CCS period of emergency has been declared.
- Were closed, or partially closed, for eight days or more due to the cyclone.
- Waived gap fees for families during the closure.
Families who need extra help with the cost of child care may be eligible for Additional Child Care Subsidy (Temporary Financial Hardship) which usually covers the full cost of child care for up to 100 hours of care per fortnight, for up to 13 weeks.
Boosting STEM Programs
The Government will invest $7.01 million to expand successful science, technology, engineering and mathematics (STEM) initiatives, including:
- $1.15 million for the CSIRO STEM Professionals in Schools Program.
- $1.46 million for Let's Count, an early education maths program.
- $0.65 million for Little Scientists, a training program for early learning educators.
- $0.7 million for Curious Minds Program, a STEM summer camp and mentoring program for female students.
- $0.9 million for the National Lending Library, which provides digital technology equipment and lesson plans for schools.
- $2.15 million for three Australian Academy of Science programs (Primary Connections; Science by Doing; and reSolve).
Closing the Gap Programs for First Nations Students
The Government is continuing to invest in programs that support First Nations students, with a further $35.1 million for two key initiatives:
- $33.6 million for the Clontarf Foundation to support up to 12,500 First Nations boys and young men at school.
- $1.5 million for the MultiLit phonics-based program in 42 regional and remote primary schools until the end of 2026.
More Medical School Places and Support for First Nations Medical Students
The Government is investing $48.2 million over four years to deliver medical training opportunities including:
- 100 new medical places each year from 2026, increasing to 150 CSPs from 2028, with a focus on primary care.
- Demand-driven medical places for First Nations students from 2026.
This Budget builds on the Albanese Labor Government's significant education reform agenda which includes:
- Cheaper Child Care that has cut out-of-pocket costs for families - with the average family using child care $4,400 better off.
- A 15 per cent pay rise for early educators, with eligible providers limiting fee growth for families.
- A $1 billion Building Early Education Fund to build early childhood education and care centres where they're needed most.
- A Three Day Guarantee, ensuring at least three days of subsidies for early childhood education and care for every family.
- Agreements to fully fund all public schools in Australia.
- $3 billion in student debt wiped by fixing how indexation is calculated and a re-elected Labor Government will cut a further 20 per cent off all student loan debt and make the repayment system fairer, subject to the passage of legislation.
- A Commonwealth Prac Payment for teaching, nursing, midwifery and social work students.
- Doubling the number of University Study Hubs - in the regions and for the first time established them in our outer suburbs to bring university closer to where people live.
- A new funding system for universities that will deliver more university places and guarantees a place at university for everyone from a disadvantaged background who gets the marks to get in.
- An independent National Student Ombudsman to investigate student complaints about issues such as sexual assault, racism, homophobia, course administration and teaching provision.
- Establishing the Australian Tertiary Education Commission to guide tertiary education reform over the long-term, subject to the passage of legislation.
A re-elected Albanese Labor Government will continue to protect and invest in education.
