Transition Funding (Rural) (Reference 126)
Transition Funding (Rural) is intended to provide time-limited support to schools most affected by changes to Rural School Size Adjustment Factor (RSAF), Location Index Funding (LIF) and Country Area Program grant (CAP) eligibility as a result of updated geographic boundaries.
Funding and Eligibility
Schools are eligible to receive Transition Funding (Rural) if they meet all the following eligibility criteria:
- face a reduction in funding of greater than $25,000 in 2021 as a result of changes to RSAF, LIF and CAP eligibility from the use of updated geographic boundaries
- their 2021 Student Resource Package (SRP) allocation is less than their 2020 SRP allocation.
Calculation and formula
Allocation = 2020 SRP (campus level) allocation − 2021 SRP (campus level) allocation
Note: The Transition Funding (Rural) allocation for a school campus has a maximum defined by:
- the funding reduction in 2021 as a result of changes to RSAF, LIF and CAP eligibility from the use of updated geographic boundaries.
Eligible School Types
As per eligibility for:
- Rural School Size Adjustment Factor (RSAF),
- Location Index Funding (LIF) and
- Country Area Program grant (CAP)
Funding will be based on the 2021 transitioning position of the eligible school, funding is allocated through a mix of credit and cash funding.
Funding for transition is time limited and will reduce annually. The below outlines the transition funding reduction over the transition period, in 2022 Schools transition funding will represent 75% of the previous year transition:
- 2021 Transition Funding allocated – 100%
- 2022 Transition Funding allocated – 75%
- 2023 Transition Funding allocated – 50%
- 2024 Transition Funding allocated – 25%
- 2025 Transition Funding allocated – 0%
Example: Transition Funding (Rural) for a school is calculated as follows.
A school with numbers in the table below satisfies the eligibility conditions.
| SRP | Item | Amount ($) | Formula reference (refer to Formula reference below for explanation) |
|---|---|---|---|
| 2020 | Total SRP less rural items | 1,300,000 | A |
| 2020 | Rural items no longer eligible (RSAF/LIF/CAP) | 200,000 | B |
| 2020 | Total SRP 2020 | 1,500,000 | C |
| 2021 Indicative | Total SRP before Transition 2021 | 1,200,000 | D |
| 2021 Indicative | 2020 SRP − 2021 SRP (w/o transition) | 300,000 | E |
| 2021 Indicative | Transition amount | 200,000 | F |
| 2021 Indicative | Total 2021 SRP with new transition | 1,400,000 | N/A |
| 2021 | Transition amount 2021 (100%) | 200,000 | Transition Funding reduces over 5 years |
| 2022 | Transition Amt 2022 (75%) | 150,000 | Transition Funding reduces over 5 years |
| 2023 | Transition Amt 2023 (50%) | 100,000 | Transition Funding reduces over 5 years |
| 2024 | Transition Amt 2024 (25%) | 50,000 | Transition Funding reduces over 5 years |
| 2025 | Transition Amt 2025 (0%) | - | Transition Funding reduces over 5 years |
Formula reference:
- A = [ 2020 SRP of the school ] − [ 2020 funding under rural items (RSAF, LIF and CAP) for which the school is no longer eligible ]
- B = 2020 funding under rural items (RSAF, LIF and CAP) for which the school is no longer eligible
- C = 2020 Revised Total SRP
- D = 2021 Indicative SRP without the rurality transition funding
- E = C − D (2020 SRP − 2021 SRP)
- F = Min (B,E) (Transition = 2020 SRP − 2021 SRP but capped at the loss of Rural Items).
Reviewed 04 October 2024