Strengthening your school’s financial position post Gonski 2.0

While funding for Australian schools as a whole is set to increase under the Government’s Gonski 2.0 plan, the needs-based assessment model means not every school may be better off.

According to the Sydney Morning Herald: “Funding for Catholic systemic schools is forecast to grow by 3.5 per cent a year over the next decade—less than public schools (5.1 per cent a year) and private schools (4.1 per cent).” *

Meanwhile, the National Catholic Education Commission estimates 617 of its schools will be worse off under the new model while the trajectory of funding growth for around 350 private schools is also estimated to slow.

So where does that leave School Business Administrators? Many will be facing the reality of a tighter operating budget in the coming years with an expectation to continue to do more with less.

Some schools may already be facing the challenge of collecting on late school fees, which has a significant impact on cash flow budgeting. While the implications of Gonski 2.0 may be beyond the control of schools, strengthening their financial position by collecting on late and overdue fees is something that can be addressed—and PaySmart can help!

What’s the solution for schools?

Giving your families the option of paying their school fees by direct debit billing over the course of the year, has the potential to transform your school’s cash flow from sporadic to consistent. And for families, paying off the fees in more manageable portions by automatic direct debit makes school fee payments more convenient and affordable. Schools can also benefit from PaySmart’s comprehensive debtor management system where if, for any reason, a payment is unsuccessful, PaySmart will undertake the follow up for you (at no extra cost), allowing your staff to focus on school business.

“Being associated with PaySmart has been a positive experience both for the School and our parents. Our cash flow and collections have improved year-on-year and our parents have enjoyed the ease and professionalism of the service provided by PaySmart.”
— David Stewart, Finance & Property Manager, Macarthur Anglican School 

PaySmart Business Development Managers will be at the upcoming ASBA Conference in Sydney and are looking forward to talking to School Business Administrators about how direct debit billing can improve their school’s cash flow and enable them to take control of their operating budgets, all while providing a more affordable payment plan for parents.

If you have any questions about how direct debit billing can help your school, talk to one of PaySmart’s Client Account Managers today!

* http://www.smh.com.au/federal-politics/political-opinion/gonski-20-your-school-funding-questions-answered-20170608-gwn446.html

colin-walker