A New Funding Policy Settlement for Australian Schooling

School funding is widely advocated in policy and research as a means for improving education outcomes, addressing inequalities, and improving the economic prospects of nation states. In this chapter, we focus on developments associated with the landmark 2011 ‘Gonski’ review, which sought to overhaul Australia’s patchwork approach to funding, reverse declining student performance trends, and address growing inequalities. Despite these grand aims, we show that its overarching equity aspirations have not been realised and inequalities persist. We suggest these problems will continue, unless major structural and procedural reform is undertaken. We also argue that political interests continue to bedevil funding processes, with funding levels and deals subject to the winds of political cycles, party changes, and lobby groups. In response, we argue that a new funding settlement is needed that attends to these long-standing issues and seeks to distance short-term politics from funding decisions. While we recognise that funding politics can never be abstracted from funding policies, we nevertheless offer three reform trajectories that we suggest could underpin a new settlement. In doing so, we argue that achieving a more equitable and effective education system in Australia requires a new vision and a stronger commitment to equity principles. By pursuing these trajectories, Australia can pave the way for a future where every student, regardless of background or location, has access to better quality education, laying the foundation for a more prosperous and cohesive society.