Building Fund for Non-Government Schools – Islamic Schools

1.1. The Victorian Government recognises the importance of the non-government school sector in meeting the educational needs of a diverse range of students across the state. With approximately one third of Victorian students enrolled in non-government schools, it is important that all children across Victoria have access to first class educational facilities.

1.2. The Government has committed $450 million to help build and upgrade low-fee catholic and independent schools across the state. This funding will be allocated over 4 grant rounds and the Islamic stream, across four years (2023-24 to 2026-27) for independent schools.

1.3. Schools are not required to match the government’s contribution dollar-for-dollar. However, the sector is to ensure a collective co-contribution of at least 20 per cent of the overall fund value, over the life of the Program.

1.4. These guidelines set out the Department of Education (the Department) requirements for the administration for the Program by the Victorian Independent Schools Block Grant Authority Ltd (the sector body).

1.5. With the exception of aggregated reporting data (school name, address, grant amounts) all information provided by schools as part of the application process will remain confidential and will only be released to a third party if and when it is authorised by the sector body and the Department.

2.1. The 450 million funding commitment will be divided across four project categories:

*Note: For applications seeking only to remove asbestos and/or cladding there is no minimum grant amount. See section 3.4 for more information.

2.2. Schools are required to co-contribute at least 20 per cent of the overall fund value, over the life of the Program. The following will not be considered in calculating co-contributions for projects:

• 2.2.1. in-kind support
• 2.2.2. land value (or land costs for new schools)
• 2.2.3. other State or Commonwealth Government grants (this may be allowed in exceptional circumstances upon submission of suitable evidence from the sector body).

2.3. The distribution of funding between the sector bodies will mean independent schools receive up to 30 per cent of this investment, including $30 million to build and upgrade Islamic schools^[1] (from the independent schools share of funding).

2.4. Funding is to support “low-fee” paying non-government schools. Low fee-paying schools are defined using an income per student value of $8,125 per year in 2023 (indexed annually), or as otherwise decided by the Minister for Education.

2.5. Schools must provide evidence of the financial need for funding assistance under the program, through supporting documentation and response to merit assessment criteria. The evidence should outline schools do not have the capacity to meet the total cost of the project through cash reserves, borrowings and fund-raising.

3.1. An existing non-government school must:

• 3.1.1. be registered with the Victorian Registration Qualifications Authority (VRQA)
• 3.1.2. be a member, or prospective member, of the relevant Block Grant Authority

3.2. To be considered for funding, new non-government schools must be able to demonstrate some certainty of successful establishment, operation and government, in line with the relevant sector body’s requirements.

3.3. To be eligible, schools must additionally provide evidence demonstrating:

• 3.3.1. well-developed independent (third-party) cost estimates consistent with the scope of the proposed works, including cash flow and evidence of contingency planning. At a minimum this would include:
  • for projects over $200,000 an independent estimate from a quantity surveyor or another suitably qualified builder, construction manager or building professional; or
  • for projects $200,000 and under, cost estimate from two building professionals. Each cost estimate must include:
    • the Trading name of the organisation providing the cost estimate or quotation;
    • an Australian Business Number; and
    • itemisation of individual costs to demonstrate all expenditure is eligible under these guidelines.
• 3.3.2. floor plans / project drawings detailing the proposed works
• 3.3.3. a site plan to illustrate what parts of the land or building will be changed by your project.
• 3.3.4. project readiness, including a time commitment indicating construction will begin within 12 months of announcement.
• 3.3.5. completed within 18 months of commencement for projects in category 2.1.1 and 2.1.2, or
• 3.3.6. within 12 months of commencement for projects in category 2.1.3 and 2.1.4

3.4 Schools may not receive more than one grant over the four rounds of funding and the Islamic stream. The only exception to this is instances where a school is successful in receiving a grant to address asbestos and/or cladding issues. That school may seek grant funding towards a project to remove asbestos and/or cladding and remain eligible for funding a capital project in later rounds.

3.5 Where a school is successful in receiving a grant to address asbestos, that grant must be used for planned removal of asbestos that may pose a risk in the future. This funding should not be used to address an emergency response to the removal of asbestos. (Please refer to Attachment 1 – Removal of Asbestos and/or Cladding for further information).

3.6 Before applying, applicants should familiarise themselves with the Local Jobs First Policy, which is implemented by Victorian Government departments and agencies to help drive local industry development. Further information can be found here: A Fact Sheet is available on the Victorian School Building Authority website.

3.7 Schools that received funding through the previous Victorian Government non-government school infrastructure programs (2015–2023) are eligible to apply.

4.1. Schools that meet the eligibility requirements and that are able to address the assessment criteria below are welcome to apply for funding under the Program.

Applications will be assessed against the below criteria. Recommendations for funding will be based on applications which best meet the criteria. The distribution of projects across different geographic areas of the state may also be taken into account.

The table indicates to which project category each criterion applies. The criteria carry equal weighting.

4.2. Schools or the sector body can liaise with the Department of Transport and Planning (DTP) regarding planning requirements for projects related to this Program.

4.3. Schools may apply for funding to address both capacity and condition of existing facilities, in which case all criteria will be assessed.

4.4. There will be no reimbursement of costs for works already undertaken by a school.

4.5. Funding may be provided for the following items as part of the project, as appropriate:

• 4.5.1. furniture, fixtures and equipment
• 4.5.2. computers

4.6. Grants are not available for:

• 4.6.1. retrospective assistance: an application is considered to be retrospective if a project applicant enters into a commitment prior to receiving a formal letter of offer from the Department. This includes applicants signing a construction contract, commencing site works or construction
• 4.6.2. places of worship
• 4.6.3. purchase of cars, buses and other vehicles
• 4.6.4. staff salaries and training
• 4.6.5. ongoing administration costs
• 4.6.6. playground equipment as a stand-alone project
• 4.6.7. toys and consumables
• 4.6.8. appliances as a stand-alone project
• 4.6.9. swimming pools
• 4.6.10. early learning centres (ELCs)
• 4.6.11. routine maintenance
• 4.6.12. purchasing land, with or without existing buildings.

5.1. The Program will be delivered over 4 grant rounds and the Islamic stream.

5.2. The key stages of the application process for each round are as follows.

Round 1

Round 2

Round 3

Islamic stream

Round 4

5.3. Schools must apply online through SmartyGrants at https://vsba.smartygrants.com.au. All applications will be expected to include such information as is determined necessary by the Department and sector body; to enable them to comply with these guidelines in making the selection and recommendation of successful applicants.

5.4. Applications should be submitted under the school’s main email address to ensure ongoing access to the information for future school staff.

5.5. Schools may submit one application for their highest priority capital need in SmartyGrants prior to the application closing date. The Department and sector body will have equal access to the project application once it has been submitted in SmartyGrants.

5.6. The Department and sector body will undertake an independent assessment and score each application against each of the above criteria.

5.7. The sector body and the Department may meet at any time during the assessment process.

5.8. As part of the assessment process, the sector body or the Department may seek clarification or further information from applicants. All requests for information will be agreed between the Department and Sector Body, before approaching the applicant.

5.9. On an agreed date(s), the sector body will independently meet with the Department to discuss the ranking/score of the sector’s applications and agree to an indicative list of priority projects.

5.10. The indicative list of priority projects will remain as indicative until tabled for consideration and endorsement by the governing body of the relevant sector body (e.g. Board).

5.11. Prior to the Department making final recommendations to the Minister for Education, the sector body may write to the Minister, via the Department, to formalise their shortlist of projects.

5.12. On an agreed date the assessment process will conclude. Funding recommendations are made by the Department to the Minister for Education and will be based on the assessments conducted by both the Department and sector body.

5.13. The Department reserves the right to provide strategic investment to projects.

5.14. The Minister for Education will determine the successful projects and the grant funding allocated to each.

5.15. Notification will be sent by way of a formal letter from the Minister for Education to the sector body and the successful applicants to inform them of the funding allocation and the agreed scope of works. The Department will advise unsuccessful applicants of the result of their application.

5.16. Successful schools must wait for formal advice. The sector body will confirm the terms of funding and any administrative arrangements for the grant with successful applicants.

5.17. The Department will not reimburse planning expenses invested by the unsuccessful applicants to meet application requirements.

5.18. The sector body will be responsible for overseeing the delivery of all successful projects (unless otherwise agreed in writing with the Department).

6.1. Applicants will be required to demonstrate how the proposed project meets the assessment criteria and to submit the relevant supporting documentation. An indication of the types of supporting documentation include:

• 6.1.1. evidence the applicant is an eligible organisation, as per the eligibility criteria
• 6.1.2. a well-developed project proposal that meets the aims of the Program with achievable timeframes
• 6.1.3. evidence of land or building ownership, or evidence of permission from the land and building owner for a minimum of 10 years use
• 6.1.4. data on current and future capacity on completion of the project
• 6.1.5. a statement of the education and community benefits of the proposed projects
• 6.1.6. details of how the new facilities will meet the needs of the local community
• 6.1.7. photographs demonstrating condition of facilities which are the subject of the grant application
• 6.1.8. well-developed independent (third party) cost estimates consistent with the scope of the proposed works, including cash flow and evidence of contingency planning. At a minimum this would include:
  • for projects over $200,000 an independent estimate from a quantity surveyor or another suitably qualified builder, construction manager or building professional; OR
  • for projects $200,000 and under, an itemised quote from two building professionals.
  • Each cost estimate MUST include:
    • the trading name of the organisation providing the cost estimate or quotation;
    • an Australian Business Number; and
    • itemisation of individual costs to demonstrate all expenditure is eligible under these guidelines.
• 6.1.9. floor plans / project drawings detailing the proposed works
• 6.1.10. a site plan to illustrate what parts of the land or building will be changed by your project
• 6.1.11. evidence of the financial viability of the school should be provided. Suggested documentation is outlined in the Factsheet.
• 6.1.12. evidence of the availability of other funding contributions to meet the total cost of the project, including details of any partners and their specific contributions to the project
• 6.1.13. outline of student fees, charges and parental contributions collected by the school.

6.2 The sector body or the Department may seek any other information deemed necessary to assess applications.

7.1 Recipients of grants under the Program will:

• 7.1.1. be expected to spend the grant on the project as specified in the approval
• 7.1.2. provide a funding contribution to the project at a level determined as appropriate by the sector body and the department.
• 7.1.3. enter into an agreement with their sector body to proceed with the project no later than eight weeks following official notification of a successful grant application
• 7.1.4. commence construction within12 months of announcement of funding
• 7.1.5. ensure that the project is completed to a satisfactory standard:
  • no later than 18 months after the beginning of construction for projects in categories 2.1.1 and 2.1.2; or
  • within 12 months of commencement for projects in categories 2.1.3 and 2.1.4.
    Note: Approval must be sought from the Department for all changes in scope that alter the functionality of the final product or the description of the approved project.
    Additionally, approval must also be sought from the Department for changes in the project’s timeline resulting in an extension of the end date by more than two months. If such changes are not approved, the Department reserves the right to cancel the grant and, if applicable, to recover any payments that have already been provided.
• 7.1.6. ensure the project complies with the Building Code of Australia or the Code of Practice for the Construction Industry and all applicable local, State or Commonwealth legislation or regulations
• 7.1.7. ensure the project aligns with the universal design principles to ensure facilities can better accommodate a diverse student and staff base with varied needs and abilities. The universal design principles are:
  • Equitable use
  • Flexibility in use
  • Tolerance for error
  • Low physical effort
  • Simple and intuitive design
  • Size and space for approach and use
  • Perceptible information
• 7.1.8. provide accountability information to the sector body or the Department, directly or via the sector body, as required within specified timelines
• 7.1.9. use the facilities funded for the purposes described in the application and funding agreement to provide school level education services as outlined in the school’s registration through the VRQA. Facilities funded under the Program must continue to deliver educational services for no less than 10 years following completion of the project
• 7.1.10. acknowledge the State Government’s assistance in publicity issued by the school concerning the facilities
• 7.1.11. comply with any other conditions on which the grant is made
• 7.1.12. repay the sector body as much of the grant as is determined by the Department if the school fails to comply with the conditions on which the grant is made.

8.1. All projects funded under the Program must comply with the State Government’s guidelines on acknowledgement and publicity (Attachment 2 – Victorian Government Acknowledgement and Publicity Guidelines)

8.2. As part of their application, schools must include an indicative timeline for the following aspects of their project, as applicable:

• 8.2.1. ground-breaking
• 8.2.2. roof-on
• 8.2.3. official opening within three months of project completion

8.3. The Government has the right to issue media releases in relation to and/or attend all of the events above if the State Government has provided the majority of funding issued through grants to the project. The Office of the Minister for Education will advise schools if invitations are required to be extended to Government representatives in relation to these events

9.1. The sector body will enter into a legally binding agreement with each school in their sector receiving funding, before funding is distributed. The Department will provide a list of the minimum clauses to be included in the agreement. The sector body may insert additional clauses provided they are consistent with these guidelines and the clauses stipulated by the Department. Signed copies of these agreements will be provided to the Department through the nominated reporting platform. The agreement will include:

• 9.1.1. the conditions outlined in school accountability for use of funding
• 9.1.2. provisions to allow a person nominated by the Department the right to inspect the facilities for which capital assistance was provided
• 9.1.3. return of all funds to the sector body in the event of the cessation of the project, or return of unexpended funds in the event that the actual expenditure is less than the approved grant amount
• 9.1.4. implementation of projects in accordance with requirement of all relevant legislation
• 9.1.5. specific commencement and completion dates for the project
• 9.1.6. appropriate accountability procedures consistent with the requirements of these guidelines
• 9.1.7. acknowledgement that any costs on the project in excess of the approved grant amount will be met by the school from other sources.

10.1. A Funding Agreement will be established between the Department and the sector body stipulating each party’s responsibilities for the duration of the Program.

10.2. The Department reserves the right to complete a detailed audit of projects funded under the Program.

11.1. The sector body must establish a separately identifiable account for the Program at an approved bank or other institution into which it pays:

• 11.1.1. all grant amounts received from the Program (payments for projects are also to be made from this account)
• 11.1.2. interest earned on these funds
• 11.1.3. grant funding returned by schools from discontinued projects or under-expenditure.

11.2. Any interest earned by the sector body on the capital funds must be used in the Program. The sector body can allocate this money for additional projects or to supplement existing projects during the life of the Program following consultation with and approval by the Department.

11.3. The sector body may use 3 per cent of the Program funds to meet the cost of administering the Program. Funds allocated for this purpose that remain unspent are available for capital projects. These funds will be paid, on a monthly basis into the same account to that established for grant monies under the Program.

11.4. If the sector body or the Department becomes aware of a school breaching any of the conditions of funding under the Program, the sector body must stop all payments to that school and take all reasonable steps to recover the grant except legal proceedings in court. In the case of non-recovery, the Department will decide whether legal proceedings should be initiated.

11.5. Any recovered funds under the Program must be used by the sector body for the Program or returned to the Department.

11.6. Payment will be provided to the sector body based on milestones as outlined in the table below.

11.7. As part of monthly reports submitted to the Department, the sector body will submit evidence of all milestones reached by projects in that reporting period. The Department will make the appropriate payment to the sector body if evidence suitably demonstrates the milestone being reached.

12.1. The total administration allowance allocated to each project will equal 3 per cent of the total grant amount.

12.2. The administration allowance will be paid in monthly instalments.

13.1. The sector body will determine the mechanism and timing for distributing funding to schools in their sector.

14.1. Upon completion of the project, the schools will be required to supply evidence that the facility is fully operational. The following evidence will be required to be uploaded in Department’s nominated reporting platform within fourteen weeks of the expiry of the Defects Liability Period:

• 14.1.1. Project Completion Form endorsed by the sector body
• 14.1.2. Certificate of final completion
• 14.1.3. Architect/Supervisor’s Statement of Final Costs and the Certificate by an independent Qualified Accountant

15.1. Schools will be required to report on their progress to their sector body which is responsible for reporting updates to the Department on a monthly basis. The information required by the Department will include, but is not limited to, information on the progress, schedule, scope, financial status, and risks and issues of each project.

15.2. The principal method of reporting by the sector body to the Department will be via the Department’s nominated reporting platform.

16.1. The sector body must provide annual reports to the Department by 31 December in each year of the Program. The annual report must include:

• 16.1.1. an audited statement of income and expenditure in relation to all grants distributed through the Program during the accounting period and total expenditure by the sector body. The qualified accountant, who must be independent of the sector body, must certify as to the fairness and accuracy of this statement and show any qualifications to this certification
• 16.1.2. details of all accounts operated by the sector body in which funds for the Program are held, including a copy of the full, unedited bank statements for the account into and out of which grants payments are made
• 16.1.3. a list of payment made to schools including the source of payment (general program funding interest, reclaimed funds)
• 16.1.4. a schedule of completed projects
• 16.1.5. confirmation by the sector body that for each completed project the school has provided a declaration by the project supervisor or architect that the project is completed in accordance with the approved scope
• 16.1.6. a reconciliation of undisbursed funds
• 16.1.7. an explanation of the status of un-acquitted projects
• 16.1.8. a certificate by a Qualified Accountant stating whether an amount equal to the amount of the grant paid to the sector body by the State Government for that program year has been spent (or committed to be spent) for that program year and for the purposes for which it was granted. The certificate may be supplemented by a more comprehensive Accountant’s report
• 16.1.9. a procedural accountability return.

17.1. Reporting requirements will be applicable until grant monies have been paid to recipients and the defect and liability period has closed for all projects from all years of the Program. The final annual report will include a summary of all projects funded through the Program and provide:

• 17.1.1. the number of schools funded
• 17.1.2. the number funded in comparison to the number of applications received
• 17.1.3. an assessment of the degree to which the funding has contributed to the aims of the Program to expand capacity in response to enrolment demand and upgrade facilities at existing schools
• 17.1.4. an assessment of the degree to which the funding has improved student outcomes
• 17.1.5. an assessment of the degree to which the funding has delivered flexible and environmentally sustainable facilities
• 17.1.6. an assessment of the degree to which the funding has delivered educational and community benefits.

17.2. Records of all applications, assessment, contracts, payments and accountability processes and other documents associated with the Program must be kept by the sector body for at least four years after the completion of each project.

It is important to note that schools should not seek to apply for funding through this program to address urgent asbestos and/or cladding issues, that require immediate/urgent attention, management and/or removal.

Asbestos

Applications will be considered for the planned removal of asbestos that may pose a risk in the future; Asbestos in schools is to be managed in accordance with the Occupational Health and Safety Act 2004 and the Occupational Health and Safety Regulation 2017.

The removal of asbestos must be undertaken in accordance with the relevant legislation.

Eligible schools will be those who are considering the planned removal of asbestos that may pose a risk in the future.

Application details must show that all asbestos removal undertaken will be in accordance with the Work Safe Victoria Compliance Codes. The compliance codes provide practical guidance on how to comply with your obligations under Victoria’s occupational health and safety legislation to manage risks associated with asbestos in the workplace.

You can read further information on what is expected.

It is relevant for people who commission asbestos removal work, those who manage or control workplaces where removal work is performed, and employees and health and safety representatives of workplaces where removal work is carried out.

This compliance code provides practical guidance on how to comply with your obligations under Victoria’s occupational health and safety legislation to manage risks associated with exposure to asbestos in your workplace.

Cladding

Applications will be considered for the removal of cladding in high-risk buildings at non-government schools as part of the state-wide audit being led by the Victorian Building Authority (VBA).

A common condition of Victorian government funding for services or project activity is that recipients must agree to follow the Department’s guidelines for acknowledging the government’s funding. Aligning with the current Victorian government branding protocols, funding acknowledgment guidelines are provided as follows.

Keeping the funding confidential

You may be required to keep the funding confidential until a public announcement is made.

Once approved, many grants remain highly confidential until the relevant Minister or their representative has publicly announced that funding has been approved. If this applies to your service or project activity, you will have been advised of this in writing at the time you were directly notified that funding had been approved.

The Department is responsible for coordinating participation by the Minister or representative. You can expect that the Department and/or the Minister’s office will contact you to make arrangements for the announcement. If you are aware of any upcoming events that might provide a good opportunity to make the announcement, you should contact the Department.

Government representative opportunities

You must give the government’s representative an opportunity to open or launch the funded service or project activity and invite them to events.

If you wish to launch or open the funded service or project activity at a public event or similar, you must give the relevant Minister the opportunity to officially open or launch the service or project activity. You must also invite the Department and the Minister to all significant events associated with the service or project activity.

You will need to give adequate notice (the Department recommends at least two months’ lead time) and work with the Department to coordinate the Minister’s and his or her representative’s role in the opening or launch, or their attendance at events.

Printed and verbal acknowledgment

You must acknowledge the government’s funding support in published or printed materials, speeches, or other forms of presentations.

The Victorian government’s funding support and key messages about the Department or funding program (if there are any) should be acknowledged:

• In speeches and presentations about the service or project activity
• In press releases
• In relevant job advertisements
• On documents, publications, reports, brochures, posters, fliers and the like. The government should also be given the opportunity to contribute to a sponsor’s message for any relevant publication
• On websites: websites developed with the government’s funding support should also include a link to the Department website. You should contact the Department for the Department website URL.

Guidance on Victorian government logo use and key statements to use are included in these Guidelines.

Capital projects acknowledgement

For capital projects, the government’s funding support is to be acknowledged on signage.

The Victorian government logo is to be displayed on:

• Temporary signs erected while the work is being done
• Permanent signage, such as a plaque.

You need to ensure that the current Victorian Government branding guidelines are followed when using the Victorian Government logo on any signage. You should contact the Department for assistance.

Victorian government key statement for publishing or printing

You must use the following funding acknowledgment statement in published or printed materials associated with the funded service or project activity.

“The [Name of service/project] was/were supported by the Victorian Government.”

Victorian government education state logo for publishing, printing and signage

You must use the Victorian Government’s Education State brand in all published or printed materials or signage associated with the funded service or project activity.

There are variations on how the logo is to be used depending on what you are publishing or printing. It cannot be altered without permission.

You should liaise with the Departmental officer named in your service or funding agreement to provide drafts of publications or signage featuring the Victorian Government Education State brand for approval prior to final production.

Department signage at events

The Department’s signs or banners are to be prominently display at all openings, launches and events supported by or associated with government funding support.

Departmental signs and banners can be borrowed from the Department. Your organisation is responsible for organising their collection, display and prompt return. If you are aware of any upcoming openings, launches or events where the Department’s sign or banner should be displayed, you should contact the Department.

Reporting on acknowledgement of the government’s funding support

You may need to provide details of how the government’s funding support was/is being acknowledged.

The Department will request this information as part of your reporting template or instructions in relation to the funded project or service activity.

Further information

Please contact the Department officer named in your service or funding agreement for further guidance.

The following factsheet supports Independent (including Islamic) Schools to prepare and submit applications to the Building Fund for Non-Government Schools. All responses and documents listed below support the assessment of applications against the program eligibility and merit assessment criteria. They are requested to ensure projects are ready, feasible and meet the intended objectives of the program.

Successful projects (announced November 2024)

Two schools were funded through Round 2 of the Building Fund for Non-Government Schools – Independent stream:

• Darul Ulum Academy
• Glenroy Private