Allocation of funds

Allocation of funds

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Objectives of Funding 

CAP funding is provided specifically for the enhancement of educational opportunities for non-government school students disadvantaged by geographic isolation. The funds are provided at the national level (as a national grant) and are distributed between the two non-government educational sectors: Catholic and Independent, on the basis of relative need. This relative need is determined on a proportional demographic basis. The Australian Government recognises that the non-government education authorities in the States and Northern Territory are best placed to determine the local allocation of CAP funds, according to the priorities identified by them, utilising their knowledge of local need, provided they comply with the Schools Assistance Act 2008 Administrative Guidelines: Commonwealth Programs for Non-government Schools, 2009 to 2012.

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Allocation of Funding 

The allocation of funding between States and the Northern Territory is based on a demographic allocative mechanism which identifies populations of students in areas defined as rural and/or isolated based on Australian Bureau of Statistics (ABS) National Census data. These populations are then proportioned between States and the Northern Territory to determine relative shares of the national pool of funds.

The mechanism identifies two distinct (but intersecting) groups of students – a rural population and an isolated population. These groups are defined as follows:

  • Rural students attending non-government schools who live in settlements of less than 5,000 persons. This group is divided into those living in settlements of less than 1,000 persons who are considered more educationally disadvantaged and weighted at twice the rate of those in settlements of more than 1,000 but less than 5,000 persons.
  • Isolated students are those attending non-government schools who live more than 100 km from a town of 10,000 persons or more. This group is divided into those living more than 150 km from such a town who are considered more educationally disadvantaged and weighted at twice the rate of those living in the 100 – 150 km.

The mechanism provides for a weighting for each educational authority on the basis of a total Australian weighting of two; one full weight apportions funds on the basis of size of settlement and one on the distance from a centre. Within these two groups, more disadvantaged students are more heavily weighted than the balance in the group. To provide a percentage share, the total relative weighting should, therefore, be divided by 2 and multiplied by 100.

The population data for these groups of students in each State and the Northern Territory is drawn from the latest ABS Census data and the relative distribution of each group across States and the Northern Territory determines the relative share of the national pool of CAP funds. One half of the total pool of funds is allocated to each of the groups – rural and isolated – and the sum of the contributions made by each of the two groups in a State determines the total funding share for the State.

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Funding Formula 

The formula is:
Ni = ( (2a + b) / (2A + B) ) + ( (2x + y) / (2X + Y) ),

Where:
Ni = percentage share of total funds available for education authority i;

a = student(s) resident in settlements of less than 1000 persons;
A = total Australian students in settlements of less than 1000 persons;

b = student(s) resident in settlements with 1000 – 4999 persons;
B = total Australian students resident in settlements with 1000 – 4999 persons;

x = student(s) resident more than 150 km from a town of 10,000 persons or more in the same State or Territory;
X = total Australian students resident more than 150 km from a town of 10,000 persons or more in the same State or Territory;

y = student(s) resident within 101 – 150 km from a town of 10,000 persons or more in the same State or Territory;
Y = total Australian students resident within 101 – 150 km from a town of 10,000 persons or more in the same State or Territory;

and

(i) = non-government educational authority for which funds are calculated;
(s) = non-government students attending a school administered by educational authority(i).
The term ‘Australian” refers only to residents in Australia and excludes overseas visitors. The CAP currently uses Australian students and student resident data from the 2006 Census in the formula for determining allocations.

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