Increased Focus on NCCD Classifications
The Federal Government’s 2026–27 Budget introduced the School Funding Integrity measure, targeting an estimated $472 million in disability funding claimed by schools through the Nationally Consistent Collection of Data (NCCD) on School Students with Disability, amid concerns that some schools are exploiting gaps in the current classification process.
The measure signals the government’s focus areas surrounding this funding, with the issue not being a failure for these schools to spend disability funding but rather a focus on the classification of students within the current framework. The government’s response places emphasis on ensuring that students assessed for disability funding are supported by appropriate evidence and consistent application of NCCD requirements.
The NCCD is critical to the funding model of many independent schools. However, it is reliant on schools’ judgement and maintaining evidence to justify that appropriate support is being provided to students with disability. Due to the federal government’s enduring focus on compliance in the disability sector, accuracy of these student classifications is becoming increasingly important.
Questions Schools Should Be Asking
For school leadership and boards, this measure should prompt several considerations:
+ Are student NCCD classifications appropriate?
+ Do we have sufficient documentation in place to support the classifications?
Governance, Risk and Future Accountability
Whilst this measure concentrates on funding claims and student classification, schools should be mindful of broader funding expectations and accountability moving forward. As government scrutiny continues, it should be expected that greater attention is given to how disability funding is utilised and whether this expenditure aligns with the support needs of these students.
Strong governance around claiming and usage of funding will position schools to respond to future reviews. Accurate NCCD submissions, clear documentation and oversight processes are no longer simply administrative requirements but are essential for risk management.
This measure serves as a reminder for all schools to assess their NCCD compliance frameworks as the scrutiny for funding expectations continues to evolve.
