Reversion to the state sector

Currently, the Minister of Education has absolute discretion over decisions to open new state schools. This means that, if a school were to convert and then wish to go back to the state sector, there is no guarantee their school would be approved to re-open. We have heard from some schools and sector groups that this uncertainty is a deterrent to converting, as it could result in disruption for students, staff and the school community, if they need to move to a new school.

Will any charter school be able to revert to a state school?

Only charter schools which had previously been a state school before converting into a charter school will be able to revert back to a state school. This does not apply to new charter schools.

Schools will only be able to seek to revert if their contract is terminated by mutual agreement with the Charter School Agency, or the sponsor chooses not to renew the contract. It is not a pathway for underperforming charter schools.

By providing a pathway for converted charter school to revert to the state system, will this allow poor performing charter schools to avoid closure?

This proposal is not intended to provide a pathway back to the state sector for underperforming charter schools. Contracts and legislation provide a clear framework for managing performance and the Authorisation Board will intervene where there are performance issues. This proposal will apply to schools that choose to return to the state sector for other reasons.

What are the transitional costs for converted charter schools returning to the state system?

Any costs associated with the closure of a charter school will sit with the sponsor. This includes the cost of their staff becoming redundant, and any other obligations the sponsor is responsible for upon termination of their contract.

All costs of establishing a new state school following the closure of a converted charter school would fall to the Crown. However, these costs are expected to be significantly lower compared to opening a new state school under normal circumstances. For example, ordinarily new state schools receive establishment funding to ensure they are provided with additional staffing and funding for the costs that a school incurs during the establishment period. However, many of the establishment funding components will not be needed as the newly reopened state school would already have been operating as a school.

Will teachers from the converted charter school be able to teach in the new state school?

When a converted charter school closes and re-opens as a state school, the school will revert back to the requirements that exist for state schools. This includes requirements set out in the Education and Training Act 2020 around employing registered teachers and those with a Limited Authority to Teach. There are no exemptions to this for reverting charter schools.

The proposed amendments to legislation will provide preferential status for existing charter school staff to apply for roles at the new state school. This in practice would give existing charter school staff priority for employment, however not all staff may transfer to the new state school because there may be a reduced staffing entitlement or the teachers at the charter school may not be registered teachers. If existing charter school staff cannot be employed at the new state school, the relevant redundancy costs will be met by the sponsor.

Why will charter school staff be given preferential treatment to apply for roles in the new state school?

This will reduce disruption by providing continuity of employment for staff and learning for students, as well as reducing potential redundancy costs to the sponsor.