The NSW Government is continuing work to ensure taxpayer money is used responsibly with the release today of reforms that give greater clarity for non-government schools on the appropriate use of government funds.

In 2023 the NSW Government commenced a review of the operation 83C of the NSW Education Act, which governs the funding of non-government schools across the state, to ensure its function aligned with community expectations.

Released today, the review has provided recommendations which provide a path to greater transparency and accountability.

While the report noted the current implementation approach is effective in ensuring the integrity of non-government school financial practices, there are reforms available that will improve regulation and efficiency of the system while maintaining and strengthening the oversight of school financial practices.

In line with key recommendations of the report, the NSW Government will:

• Transfer regulatory oversight of public funding for non-government schools from the Department of Education to NESA. This will align funding regulation with broader regulation of non-government schools.
• Develop regulations to clarify services and functions that do not constitute a breach of a school’s not-for-profit requirements.
• Improve guidelines to make the regulator’s role clear and transparent in assuring that school expenditure arises from the operation of the school.
• Develop more timely and less costly remedies to address as they arise, such as compliance or show cause notices, to avoid unnecessary litigation.
• Strengthen the oversight role of the Not-for-Profit Advisory Committee.

The Review was chaired by Professor Tom Alegounarias, former president of the NSW Board of Studies and Chief Executive of the NSW Institute of Teachers who consulted closely with stakeholders, on this report.

Professor Alegounarias will oversee the implementation of these changes, which will be implemented by mid-2025.

The review report and submissions received are available at: https://www.nsw.gov.au/education-and-training/nesa/about/who-we-are/what-we-do/reviews

Deputy Premier and Minister for Education and Early Learning Prue Car said:

“I want to thank Professor Alegounarias for his tireless commitment to consultation throughout the review and to all those who made a submission.

“It is important that the public have confidence that taxpayer funds are being used appropriately for the education of students.

“It is in everybody’s interests for the rules to be clear.”