CANBERRA, Sept 13 - The commonwealth will give less extra funding to non-government schools this year because some states have cut schools spending.
At present, federal funding for schools is adjusted annually using a measure called the Average Government School Recurrent Cost (AGSRC).
The amount is based on state and territory spending on public schools and is used to work out supplementary federal funding to private schools.
If state and territory governments reduce their funding, that cut automatically flows on to commonwealth government funding.
The system was set up under the Howard government and is said to take into account the real costs of schooling.
For 2012, the AGSRC indexation is 3.9 per cent - two points lower than that of 2011 when the indexation was 5.9 per cent.
"Because state and territory governments have been slowing the growth in spending on schools in recent years, the rate of indexation for federal funding to schools is 3.9 per cent for this year," Schools Minister Peter Garrett said.
The federal executive council signed off on this AGSRC indexation amount on Thursday.
The main federal government payments to schools are made at the start of the year, and the supplementary amount as determined by the indexation towards the end of the year to take into account growth costs.