The Government is rolling out $37 million in immediate support to help small, rural and isolated schools manage fuel cost pressures, keep classrooms warm, and ensure students remain engaged in learning.
The funding will accelerate work to replace diesel boilers at up to 70 schools nationwide, removing dependence on diesel and protecting schools from future fuel price shocks, said Education Minister, Erica Stanford. The upgrade is expected to save around 600,000 litres of diesel per year, delivering cost relief while improving long‑term resilience, she said.
“Global fuel price volatility is hitting some schools harder than others, particularly those that rely on diesel and where students face longer distances when travelling to and from school,” said the Minister.
“Our priority is to ensure students are attending school and are engaged in their learning. Recently, I directed the Ministry of Education to contact every single school to understand the impact of fuel cost pressures on their individual circumstances so that targeted, temporary and timely responses can be designed.
“As a result of this engagement, we are rolling out interim support for the schools most likely to experience challenges from fuel cost-pressures, while simultaneously planning for a range of potential future scenarios.”
To support staffing in schools through the winter months in rural and isolated communities, the Government has also agreed to a temporary increase to Relief Teacher Transport Allowance mileage rates, which Minister Stanford said she was confident unions would support.
“Car reimbursement rates will rise from 37 cents to 83 cents per kilometre, and motorbike rates from 15 cents to 31 cents. The increase is effective from today and will apply for 12 months or until fuel prices ease to below $3 per litre for four consecutive weeks,” she said.
“Schools receive operational grant funding to cover mileage costs, however small schools that are predominantly rural are less likely to be able to afford the increase to the mileage reimbursement rate from their operational grant funding. In response, we are paying one-time cash grants of $2,500 to all schools with under 100 students, in addition to funding schools already receive.
“We are also increasing the conveyance allowance by 30% to help eligible families with the cost of getting children to school or the nearest bus route, benefiting 5,000 further students.
“These measures are carefully targeted to where fuel costs are having the greatest impact.”
Ms Stanford said the Education Ministry will continue to work closely with schools across the system to plan for all phases of the Government’s fuel response.
“Education is a top priority for this Government. We are committed to raising achievement, closing the equity gap, and delivering targeted temporary and timely support to schools to ensure that are supported through these cost-pressures,” she said.

