Disability Inclusion funding changes: what they mean for schools and families

For families who have worked hard to secure support at school, and educators already stretching their resources to meet students’ needs, the announced changes to Victoria’s Disability Inclusion funding are understandably distressing. Behind each allocation is a child who needs to feel safe, understood and able to participate, alongside adults working to make that possible.

From 2027, changes to student-level funding and the Disability Inclusion Profile will affect Victorian government schools. The Government says the changes will better target students with the highest needs, while disability and education organisations have raised serious concerns about the impact on support.

Parents Victoria reports that the Department of Education has confirmed a 2.5% reduction in student-level funding rates, alongside a further $850-per-term reduction for eligible students in mainstream schools. Across four terms, the latter amounts to $3,400 annually. This is not a flat $3,500 cut for every child, although affected allocations face both reductions.

An open letter from ACD and other disability and community organisations estimates that around 23,000 mainstream students will be affected by the $850-per-term reduction. The organisations also warn that more than 6,000 students could lose all their individual funding over the next two years. These figures are the organisations’ estimates of the impact.

The Department has confirmed that the Disability Inclusion Profile will reduce from 31 activities across six domains to 26 activities across five domains. Existing profiles with funding extending into 2027 will be mapped automatically to the revised tool. Although the Department says the eligibility threshold and validation settings remain unchanged, the revised activities will be used to determine funding.

Why individual reductions affect the wider school

Disability Inclusion funding helps schools organise support across their student community. Tier 2 funding builds school-wide capacity, while Tier 3 funding supports adjustments for individual students with high and complex needs. Schools can coordinate resources to meet common requirements, including shared specialist services and inclusive education positions. An individual allocation does not automatically provide a dedicated aide for that child.

When several allocations decrease, the effect on a school’s overall support budget can be substantial. For example, if 20 students each attracted the full $3,400 annual reduction, that would mean $68,000 less available across the year, before the separate rate reduction or other funding changes. This illustrates the possible cumulative impact; each school’s actual position will differ.

Staffing costs put that loss into perspective. Published Victorian government school education support salaries, effective October 2026, place Level 1 Range 2 full-time base salaries at approximately $64,000–$82,000 before superannuation and other employment costs. Actual costs depend on classification, hours and employment arrangements, so $75,000–$85,000 cannot be treated as a universal annual cost for a teacher’s aide.

Individual student allocations also vary according to the Profile and funding rules. There is no standard previous allocation of $10,000–$15,000 for every child. What matters is how the combined changes affect each school’s capacity to provide the adjustments its students need.

The pressure on families and educators

The timing adds another difficulty. The Department directed schools to an update published on 27 October, and the AEU says principals had already undertaken considerable planning for 2027. Schools now face uncertainty while organising staffing and support for the coming year.

The scale of need is substantial. ACARA reports that 27% of Australian school students received educational adjustments due to disability in 2025. This national figure includes a broad range of adjustments and is distinct from eligibility for individual Victorian Disability Inclusion funding.

Reduced resources create a risk of fewer support hours, less specialist input and less time for collaborative planning. Disability organisations warn that teachers and education support staff will face greater pressure, while families may need to reduce paid work to fill gaps in support. Families and educators need resources to work together sustainably.

Schools’ obligations to make reasonable adjustments continue regardless of whether a student attracts additional funding. Families can ask their school to explain any proposed changes, how their child’s needs will be met and when arrangements will be reviewed through the Student Support Group.

How Affirming Care Services can help

At Affirming Care Services, we know this uncertainty may feel overwhelming. We work alongside families and school teams to understand each child’s needs and identify practical ways to support their participation, wellbeing and learning.

For schools, we offer affordable staff training and consultation tailored to your team. Topics can include neuroaffirming practice, understanding distress and regulation, demand sensitivity, communication, sensory needs and classroom adjustments. Consultation can also help staff review existing supports and translate recommendations into workable daily practice.

For families, we can help you prepare for school meetings, communicate your child’s strengths and support needs, consider proposed adjustments and strengthen collaboration with the school. Where appropriate, we can contribute to shared planning so that the adults around your child have a clearer understanding of what helps.

Professional learning and consultation have a valuable role alongside adequate staffing and funding. If your family or school is navigating these changes, contact Affirming Care Services to discuss practical, affordable support suited to your circumstances.

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