Student Resource Package – School Infrastructure

Annual Contracts (Reference 36)

The Annual Contracts allocation provides for the routine servicing, inspection, and testing of various essential and mandatory items. Funded items include:

• hygiene requirements (sanitary bins, nappy bins, sharps containers)
• onsite wastewater management systems (OWMS)
• private drinking water (PDW)
• lifts
• termite inspections (not pest control)
• heaters, boilers (for example, Type A and Type B gas appliances)
• air conditioning (including evaporative cooling systems)
• vertical school systems (that is, centralised Heating, Ventilation, and Air Conditioning systems)
• gas and electrical safety inspections (specific to Teacher Accommodation).

The allocation covers servicing, inspection and testing of existing items at eligible schools. It does not cover new items (for example, it funds the servicing of existing air conditioning units but not the purchase of new units).

Costs for any associated repairs or rectification works identified through Annual Contract routine testing, servicing and/or inspection are funded via the Maintenance and Minor Works (Reference 35) component of the Student Resource Package (SRP).

Annual Contracts activities should be managed via completion of work orders in the Asset Information Management System (AIMS) (staff login required).

For further related guidance, please refer to:

• Buildings and Grounds Maintenance and Compliance policy
• Private Drinking Water policy
• Gas Heater Management policy.

Or contact vsba.annual.contracts@education.vic.gov.au or 03 7022 5800 for support.

Funding allocation

Funding is allocated to eligible schools to cover the costs of the above-listed Annual Contracts items.

Allocations are adjusted if enrolment, building and/or entitlement areas change, new equipment is provided or recorded, or the number of teacher accommodation properties managed by the host school changes.

Air conditioning entitlement

A school’s eligibility and entitlement to receive air conditioning funding is determined by the VSBA Heating and Cooling policy (BQSH) in conjunction with the NatHERS zones 20 and 27 as outlined on the Nationwide House Energy Rating Scheme site.

In 2025, historical discrepancies in air conditioning unit counting methodologies were corrected through an AIMS automation upgrade. For a small number of schools under 100 enrolments that would otherwise lose funding, counts remain at 2025 levels until the schools overall funding rises to align with revised counts.

Rates and funding calculation

Annual Contracts are calculated using a ‘bottom-up’ formula based on the 8 distinct contract types (excluding the singular payment vertical school allocation). Funding for each item is calculated by either a set funding amount per unit at the school or by fixed tiers.

Funding is calculated a set dollar-per-unit rate multiplied by each unit recorded at the school for:

• Onsite Wastewater Management Systems (OWMS): number of septic tanks
• Private Drinking Water (PDW): number of potable water drinking tanks
• Lifts: number of passenger and/or document lifts
• Heating: number of furnace heating and/or boiling water units
• Air conditioning: number of entitled evaporative and refrigerative units.

For remaining items, funding is tier-based according to enrolment or building area. Schools receive more funding when thresholds are exceeded, for:

• hygiene requirements (sanitary bins, nappy bins, sharps containers) – the allocation is a fixed amount for schools with enrolments of less than 400 students and increases to a higher fixed amount for schools with 400 or more students
• termite inspections – the allocation considers the school's total internal floor area. Schools with an area below 6,000 m² receive a fixed base amount. Schools receive a further funding for every subsequent 6,000 m² threshold crossed
• instant hot water heating units – the allocation is a fixed amount for schools with enrolments of less than 400 students and increases to a higher fixed amount for schools with 400 or more students.

Additional distinct rates and/or allocations have been established as follows:

• Separate rates apply for metro, regional and rural schools to accommodate increased service costs due to the extra travel requirements by maintenance contractors.
• Vertical schools receive a single additional payment to accommodate increased service costs associated with residing in a high-rise building.
• Servicing, inspection, and testing funding for regional and rural teacher accommodation are specific to the requirements of residential tenancies.

Reporting in CASES21

Annual Contract expenditure should be allocated in CASES21 to:

• Sub Program Code: 6401 – Annual Contracts
  • General Ledger Account Code: 86501 – Sanitation (includes septic tanks)
  • General Ledger Account Code: 86504 – Building works

SRP funding for Annual Contracts is calculated at the Indicative and Confirmed cycles and may be updated at the Revised cycle. Funding is allocated through cash funding.