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 (RSSAF), 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 $25,000 in 2025 as a result of changes to RSSAF, LIF and CAP eligibility from the use of updated geographic boundaries
- their 2025 Student Resource Package (SRP) allocation is less than their 2024 SRP allocation.
Eligible school types
As per eligibility for:
- Rural School Size Adjustment Factor (RSSAF)
- Location Index Funding (LIF)
- Country Area Program grant (CAP).
Calculation and formula
Allocation = 2024 SRP (campus level) allocation − 2025 SRP (campus level) allocation
Note: The Transition Funding (Rural) allocation for a school campus has a maximum defined by:
- 75% of the funding reduction in 2025 as a result of changes to RSSAF, LIF and CAP eligibility from the use of updated geographic boundaries.
Funding will be based on the 2025 transitioning position of the eligible school, funding is allocated through a mix of credit and cash funding.
Funding for transition is time limited and will reduce annually. The below outlines the transition funding reduction over the transition period:
- 2025 Transition Funding allocated – 75%
- 2026 Transition Funding allocated – 50%
- 2027 Transition Funding allocated – 25%
- 2028 Transition Funding allocated – 0%
Example: Transition Funding (Rural) for a school is calculated as follows.
A school with numbers in the table below satisfies the eligibility conditions.
| SRP | Item | Amount ($) | Formula reference (refer to Formula reference below for explanation) |
|---|---|---|---|
| 2024 | Total SRP less rural items | 1,300,000 | A |
| 2024 | Rural items no longer eligible (RSSAF/LIF/CAP) | 200,000 | B |
| 2024 | Total SRP 2024 | 1,500,000 | C |
| 2025 Indicative | Total SRP before Transition 2025 | 1,200,000 | D |
| 2025 Indicative | 2024 SRP − 2025 SRP (w/o transition) | 300,000 | E |
| 2025 Indicative | Transition amount (75% of rural items no longer eligible) | 150,000 | F |
| 2025 Indicative | Total 2025 SRP with new transition | 1,350,000 | N/A |
| 2025 | Transition amount 2025 (75%) | 150,000 | Transition funding reduces over 4 years |
| 2026 | Transition amount 2026 (50%) | 100,000 | Transition funding reduces over 4 years |
| 2027 | Transition amount 2027 (50%) | 50,000 | Transition funding reduces over 4 years |
| 2028 | Transition amount 2028 (25%) | – | Transition funding reduces over 4 years |
Formula reference:
- B = 2024 funding under rural items (RSSAF, LIF and CAP) for which the school is no longer eligible
- C = 2024 Revised Total SRP
- D = 2025 Indicative SRP without the rurality transition funding
- E = C − D (2024 SRP − 2025 SRP)
- F = Min (0.75 B,E) Transition = 2024 SRP − 2025 SRP = (E) but capped at 75% of the loss of rural items (B).
Reviewed 31 December 2024