The federal government has announced a new “safeguard” around how funding is spent to support school students with disabilities.

The budget papers say there is an issue with “inaccurate claiming” by schools and new controls are needed to prevent “fraud and non-compliance”.

This is more than a technical measure. It is about how disability support is recognised, documented and resourced in Australian schools.

How does school funding work at the moment?

The way school funding works is that all schools receive a base amount for each student. There are extra loadings if the student is Indigenous, has socioeconomic disadvantage, low levels of English or a disability.

The new measure aims to “increase compliance” around the disability loading part. According to estimates in the budget fact sheet, the loading is worth about A$5.1 billion in 2026.

The government now aims to save about $463 million over four years by cutting out what is described as “inappropriate allocation” of the disability loading to schools.

The federal Education Department will also get $40.4 million to strengthen compliance around disability loadings. This includes clearer guidelines around how disability data is collected from schools.

How does disability funding work in schools?

Schools are required to provide reasonable adjustments so students with disability can participate in their education and learn on the same basis as students without disability. This requirement is set out in the Disability Standards for........

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