Australian Principals Federation

SRP & Finance Policy Updates from 2026

The Department has announced several changes to the Student Resource Package (SRP) and school finance policies, effective from 2026. These were communicated in the DE bulletin of 16th September 2025. 

 

Key SRP Changes

  • Phasing Out Funding Lines: Five entitlements (P–12 complexity, mobility, split-site, language units, joint community program) begin phasing out from 2026, ending fully by 2029.
  • Equity Funding: Social Disadvantage and Catch Up allocations adjusted to 90% credit and 10% cash.
  • Targeted Learning Programs:
    • Small Group Literacy and Numeracy Early Intervention refocussed on Years 1–6 (32 hours of intervention to groups of up to 5).
    • Koorie Literacy & Numeracy Program aligns with Early Intervention Program with 80% of funds directed to timetabled 1:1 or small group support.
    • Secondary supports continue through Catch Up and Middle Years Literacy/Numeracy funding.
  • Programs Ending in 2026: Primary welfare officer (transition to Mental Health in Primary Schools), Tutor Learning Initiative, and Secondary STEM funding.
  • Programs Deferred to Confirmed SRP: Career Start, Teach Today/Teach Tomorrow, Active Schools Grants.

 

School Finance Policy Changes

  • School Funded Capital Projects: approval threshold lifted from $100,000 to $150,000. Projects above $150,000 require VSBA engagement.
  • Carryover Policy (previously known as Credit Carry Over Policy)
    • Specialist school credit carryover thresholds reduced to 7.5% (2026) and 6% (2027).
    • Specialist school credit deficits up to $100,000 may be written off.
    • Cash underspends will be converted to credit from 2026.
    • Bank interest return to schools reduced by 1%.
    • Schools with more than $2 million or 6 times operating reserves may be directed to contribute to state priority projects.

 

With the release of the indicative SRP today, the APF notes with concern that we were only briefed earlier this week on significant financial changes that will affect school entitlements in 2026 and beyond. These changes were subsequently communicated in the School Update yesterday, with the Department’s stated intent being to ensure SRP funding is directed to its intended purpose, this being today’s dollars for today’s students.

 

A matter of ongoing concern is that collectively, schools are holding excessive funds with growing reserves being held in school bank accounts. Whist this is not a practice the APF endorses, it has been stressed that this generalisation does not reflect the reality for every school and that such measures should be addressed on a case-by-case basis rather than applied across the system.

 

One of the reason schools carry forward funds is that not every school receives timely upgrades, refurbishments, or capital works funding.  Additionally, significant reductions in locally-raised revenue (such as parent payments, fundraising, or community contributions) make it harder to finance essential projects.

 

Department staff have advised that these changes will not likely impact upon the majority of schools however some of the changes, such as reduction to bank interest by 1% certainly will. Members have already voiced their concerns, and we encourage you to review the changes, assess the impact on your school, and share feedback with us. The APF will collate responses and ensure the Department is fully informed of member’s perspectives.