Term 3 priorities for school business managers

Term 3 marks the beginning of budget planning for many schools, and 2027 budgets are expected to be particularly challenging. Schools are preparing for the likelihood of increased staffing costs, particularly as teacher salaries continue to rise following enterprise bargaining outcomes.

As salaries represent the largest expenditure for most schools, leaders should carefully consider how these increases may affect overall financial sustainability. This includes reviewing existing programs and services, assessing future staffing requirements, and determining whether school fee increases will be necessary to maintain educational offerings.

Budget planning should also include scenario modelling to prepare for different funding and cost assumptions before budgets are finalised.

The annual Commonwealth Census is one of the most significant accountability requirements for non-government schools. Accurate census data directly informs government funding allocations from both the Australian and Victorian governments.

Errors or omissions can have long-term funding implications, making it essential that enrolment information, student eligibility and supporting documentation are thoroughly checked well before Census Day.

Schools should ensure staff responsible for enrolment administration and census reporting are prepared well in advance to minimise last-minute issues.

Schools are expected to receive their updated Capacity to Contribute (CtC) scores in September. CtC scores determine the proportion of Commonwealth recurrent funding a school receives, based on the assessed financial capacity of the school community to contribute to education costs.

For many schools, changes to their CtC score can have a significant impact on future funding levels. As schools are unable to accurately predict their new score before it is released, this creates uncertainty during budget development.

Schools should be prepared to review their financial projections once their updated CtC score becomes available.

Many schools are seeking guidance on the revised Financial Questionnaire, including understanding the new format, reporting requirements and supporting documentation required.

As this questionnaire forms part of schools’ financial accountability obligations, it is important that business managers and finance teams familiarise themselves with the updated requirements early to avoid delays or errors.

Funding continues to be an area of uncertainty for schools, particularly around:

• annual indexation increases
• updated Capacity to Contribute scores
• Nationally Consistent Collection of Data (NCCD) requirements
• any future Commonwealth funding policy changes.

Many schools are looking for greater certainty before finalising their budgets and fee schedules for 2027.

With teacher salaries expected to increase significantly, schools are interested in understanding how their peers are approaching budget planning.

Common discussion points include:

• forecasting salary growth
• balancing staffing costs with operational expenses
• reviewing discretionary programs
• setting tuition fee increases
• managing financial sustainability while maintaining educational quality.

These conversations are becoming increasingly important for school leadership teams and governing boards.

Schools should commence preparations well before Census Day by reviewing enrolment records, confirming student eligibility and ensuring all required documentation is complete.

Early preparation reduces the risk of reporting errors and helps ensure schools receive their correct funding entitlement.

Given the uncertainty around future funding and salary costs, schools should use Term 3 to discuss a range of financial scenarios with their Boards and Finance Committees.

Scenario planning allows schools to assess potential risks, understand funding sensitivities and make informed decisions before budgets are approved.

Schools will be required to provide Semester 1 attendance data to the Australian Government Department of Education during Term 3. While submission dates are yet to be confirmed, schools should ensure attendance records are complete and ready for reporting.

Schools registered with the Victorian Registration and Qualifications Authority (VRQA) must submit their Annual Report by 31 August. This forms part of each school’s ongoing registration obligations and should be completed within the required timeframe.