Victoria’s long-awaited public school deal comes with a catch

October 22, 2026 — 6:00amThe Victorian government will fully fund public schools by 2031, and could get there as early as 2029, after signing a long-called-for agreement with the Commonwealth to meet the state’s Gonski requirements.Premier Ben Carroll will on Thursday also announce a major funding boost for Victorian integrity and anti-corruption agencies.Premier Ben Carroll and Victorian Education Minister Gabrielle Williams have signed an agreement with the Commonwealth for schools funding.Eddie JimCarroll revealed on Wednesday he had delivered on his promise to sign an agreement with the federal government before the November 28 state election to meet the School Resource Standard (SRS), the minimum requirement established under the landmark 2012 Gonski review of school funding.The Age revealed last year that the state government had secretly delayed its promise to fulfil the reforms by providing 75 per cent of the SRS matched by 25 per cent from the Commonwealth, from 2028 until 2031.The delay denied public schools access to $2.4 billion in funding from the earlier start date and left the state and federal governments operating on transitional, yearly funding agreements.Victorian Education Minister Gabrielle Williams on Wednesday confirmed a long-term deal had been signed that would include the state meeting full funding for public schools by 2031 and run until 2034.Though public schools will still have to wait longer than promised, Williams said the agreement had a unique provision saying the state government will seek to bring that funding forward, if possible, to as soon as 2029.This would rely on Victoria being able to reach its end of the bargain – 75 per cent of the SRS, earlier.“We are and will continue to aggressively seek the sorts of budget efficiencies which will enable us to continue to prioritise frontline services,” Williams said.Over the life of the agreement in its current form, Victoria will spend $13.6 billion while the Commonwealth will spend $2.5 billion.Details of the agreement published online show most of the additional funding will flow from 2029, with the deal heavily back-ended. Commonwealth funding will reach 25 per cent in 2034, similar to their agreement with New South Wales.Justin Mullaly, president of the Victorian branch of the Australian Education Union, said the agreement would deliver billions in extra funding, but criticised the delay.“We welcome the certainty and increases that the deal provides, but the arrangements confirmed today means Victorian public schools will not receive some of the additional funding as soon as other states and territories,” he said.“The delay in signing and the decision to back-end the deal, will shortchange Victorian public schools by hundreds of millions of dollars over the next few years.“Funding delays have real consequences, and this needs to be addressed.”In another major funding commitment, Labor on Thursday will announce $139.5 million in additional funding to the Independent Broad-based Anti-Corruption Commission (IBAC), Victorian Ombudsman and Integrity Oversight Victoria.The boost follows long-awaited reforms to IBAC passed last month, which included granting the watchdog broader jurisdiction to investigate corruption, hold public hearings more often and have “follow-the-money” powers to investigate businesses that receive public money.Provided over four years, the extra money is locked in and not an election commitment.“We’ve strengthened IBAC’s powers, now we’re providing an immediate uplift in their resources to stamp out corruption,” Special Minister of State Ingrid Stitt said.“Victorians rightly expect public money to be spent properly; we’re making sure this happens.”The reforms come after Labor was dogged by allegations of corruption on taxpayer-funded construction sites and allegations of misconduct.Carroll promised to strengthen IBAC in his first press conference as premier in July when he committed to calling a royal commission into the construction sector.Both IBAC and the Ombudsman earlier this year warned they may have to shelve investigations and cut staff after being under-resourced by the state budget.Integrity advocates, the Greens and former IBAC commissioner Robert Redlich have previously called for IBAC’s budget to be set by parliament, rather than the government.Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.From our partners