School property changes

The Government has announced key changes to school property:

  • Establish a new entity separate from the Ministry of Education, to assume ownership and asset management responsibility for the school property portfolio.
  • Clarify roles and responsibilities for the funding, planning and delivery of school property.
  • Review and simplify the current funding model for state schools.
  • Implement clear processes for regular reporting and priority-setting to promote accountability, transparency, clarity of expectations, and value for money.
  • Establish a Transition Board and Transition Unit to oversee and coordinate the establishment of the new school property entity.
  • Undertake a range of immediate actions during the transition period to simplify the operating model and ensure value for money.

The first one is to me the most critical. A standalone entity with commercial governance and expertise to manage $30 billion of school property is the way to go.

In Q1 2024, over 60% of new classrooms were initiated as offsite manufacturing, up from under 20% in Q4 2023.

This indicates more affordable standard classrooms rather than each school getting bespoke designs.

UPDATE: The Government hasn’t decided to establish a new entity. It is a recommendation from the reviewers.

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