How the Equity Index applies to funding

Operational funding

Most resourcing (excluding property) for schools is delivered through the following:

Staffing entitlement 

We generate entitlement staffing for each school based on their roll size, school type and year levels of the student population.

Operational grant funding

Funding provided to schools to cover their day-to-day operating costs. It is generated through several funding components, including additional funding to support students that face socio-economic barriers currently weighted by decile.

From January 2023, the decile-based funding components Targeted-At-Risk Funding (TARG) and Targeted Funding for Educational Achievement (TFEA) will be removed and replaced with a new category ‘Equity Funding’.

Support for inclusion funding (SIF — formerly called the Special Education Grant) and Careers Information Grant (CIG) will also utilise the new EQI in place of deciles.

Read more about operational funding components

Funding curve

To limit annual funding fluctuations and better target funding, we’re also changing the way we distribute equity funding.

We’re moving to a curved funding model to smooth out any annual shifts in funding schools might receive. Under the stepped model we used for deciles schools could receive significant shifts in funding if their decile rating changed.

In developing the curve we considered four design principles:

  • There should be a significant increase in the per-pupil equity funding rate for schools facing the greatest socio-economic barriers.
  • Funding increases should be distributed to as many schools facing moderate to significant barriers as possible.
  • Where possible, the per pupil rate for schools with lower socio-economic barriers should be increased.
  • Where possible, disruption should be minimised.

The funding curve we will apply to equity funding has 226 points. These range from $0 through to over $1,000 per student. Schools with an EQI of 380 and above receive equity funding.

Line graph showing Estimated Funding rising from the index point 380 and above.

Funding rates for 2023 [XLSX, 24 KB]

Other funding

The equity components of SIF and CIG will also move to a curved funding model in line with Equity funding.

As with equity funding, the equity component will go to schools and kura with an EQI of 379 or higher. 

Note that SIF and CIG funding is only partially based on the EQI.

Read more about The Careers information grant (GIG)

Read more about Support for inclusion funding (SIF)

Read more about school funding

Equity funding

The shift to the EQI will change the amount of equity funding some schools receive. Although overall funding is increasing, some schools qualify for less equity funding, given our ability to better assess the socio-economic barriers their students face. Conversely, some schools will receive more equity funding.

Transition support

We’ll provide transition funding to allow those schools which will lose funding time to plan and adapt. For the 2023 year no school or kura will receive less operational funding due to the EQI and Isolation Index changes. From 2024 any reduction in funding will be capped at 5% per annum of a school/kura’s 2022 operational grant, to ensure funding is phased out over time.

Read more about how we calculate equity and isolation funding including transition support.

The EQI and ISO: How we calculate funding

 

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