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The New Education Funding System: What Schools Need to Know and Do

Australia’s education sector is entering a new era of digital transformation. The Department of Education is rolling out the Education Funding System (EFS), a centralised platform designed to modernise how schools including both public (government) schools and non-government (independent and Catholic) schools, as well as higher education institutions, approved authorities and education bodies, manage funding and reporting. 

EFS will gradually replace SchoolsHUB and bring everything into one secure, streamlined system. It’s designed to make life easier for schools, improve visibility over funding and reduce administrative headaches. 

“It’s great to see the government focusing on centralising the data, improving security and streamlining the process for schools,” says Matthew Crouch, Audit Partner. 

What’s changing 

The EFS will bring together funding management, data collection, legislation, policy, training materials and payment processes into a single online portal. It will offer: 

  • Greater visibility over funding entitlements and payment status, 
  • Simplified self-service access, 
  • Improved cyber-security and identity verification via Digital ID. 

For schools and approved authorities, this means a new log-in processes, updated data collection workflow and revised access authorisations. 

Key milestones 

The rollout will happen in stages between November 2025 and December 2026. 

  • November 2025: Approved Authorities get access to EFS via EducationHUB, including, payment advices and ability to submit data collections. 
  • January 2026: School funding payments start being processed through EFS. 
  • February 2026: The first major data collection (student address data) will move to the new platform. 

What schools and authorities should do now 

Getting ready early will make the shift to EFS much smoother. Here’s where to start: 

Sort out your Digital ID access 

  • Make sure your Principal Authority is linked to the school’s ABN in the Relationship Authorisation Manager (RAM). 
  • Staff who’ll use the system will need their own verified Digital ID (Standard or Strong level). 

“We encourage schools to ensure they have access to it as soon as possible, to ensure any access or technical issues are sorted out. If they don’t, they need to contact the Department for assistance,” adds Matthew Crouch. 

Review your current processes 

  • Map out how funding and data submissions are currently managed and who’s responsible. We encourage these controls to be approved by the Board.  
  • Identify what will change once the EFS goes live. 

Grant access 

  • Grant access to those that require access, including your auditor. 

Communicate early 

  • Keep your leadership, finance and admin teams informed about what’s coming. 
  • Watch for Department of Education updates, webinars and onboarding resources. 

Talk to your advisors 

  • Discuss system and process changes with your business advisor or auditor to make sure controls and authorisations stay aligned. 

Final thoughts 

The EFS is designed to simplify funding management, but its success will depend on how well schools prepare. Establishing clear segregation of duties, reviewing access levels, and ensuring accurate data input will be key to maintaining integrity within the new system. 

Engage your internal teams early and reach out for professional support where needed. Getting the foundations right now will save time and effort down the track. 

The Department is developing some good resources and has done some recent webinars which can be found here.

Please feel free to reach out to our team if you have any questions.

Matthew Crouch

Matthew Crouch's Articles

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