Public school advocates warn Albanese government billions at stake if it breaks funding promise

Advocates say Coalition-era loophole has robbed public schools of $13bn, with $26bn to be lost by 2029 if Labor fails to close it in agreements with states

• Follow our Australia news live blog for latest updates
• Get our morning and afternoon news emails, free app or daily news podcast

Public schools stand to lose billions of dollars if the federal government breaks an election promise to remove a Coalition-era loophole from funding agreements between the commonwealth and the states, advocates have argued.

The provision, introduced by the former Morrison government in 2018, allows states and territories to spend up to 4% of the total funding in the agreements on areas not directly related to schools, such as public transport, capital depreciation, regulatory bodies and preschool.

Sign up for Guardian Australia's free morning and afternoon email newsletters for your daily news roundup