The Victorian Registration and Qualifications Authority (VRQA) has released a consultation draft of the updated Guidelines to the Minimum Standards for School Registration (Guidelines), proposed to commence 1 January 2027.
In addition to a new format which clarifies the different expectations for new school applications and cyclical reviews, the draft Guidelines introduce more prescriptive requirements for how schools manage governance, finances and the student environment. The changes signal a shift toward clearer expectations and more consistent evidence at review.
This alert focuses on proposed changes under Guideline 1: Governance.
The consultation period is now open, and schools are encouraged to review the proposed changes and provide feedback before the standards are finalised. Submissions close at 5.00 pm on Wednesday 20 May 2026.
What changes are proposed?
1. Mandatory registration as a charity
The draft requires that all new school applicants be registered charities with the Australian Charities and Not-for-profits Commission. This formalises what is already sector practice but was not previously expressed in the Guidelines.
2. Independence in the school's governing body
A new requirement provides that there must be a majority of independent directors on the governing body.
This is a material departure from old guidelines, which did not prescribe board composition, but reflects expectations which have been regularly expressed by the VRQA in recent years.
Many schools already maintain a majority independent governing body to ensure effective management of conflicts of interest. However, the Guidelines do not define what constitutes independence. Accordingly, this change may materially impact a number of schools, particularly those with staff or parents on the governing body or strong faith affiliations.
3. Written delegations for day-to-day management of the school
Schools must now maintain written delegations, such as a delegation matrix or instruments of delegation, setting out financial and non‑financial limits for delegations within the school, e.g. to the Principal, staff or committees.
Written delegations must also address whether the delegate can subdelegate, when and how they are required to report on the exercise of their delegated powers, and the circumstances in which high‑risk or novel decisions must be escalated to the governing body.
This change reflects current VRQA expectations, and best practice governance.
4. Prohibited financial arrangements
The draft introduces an absolute prohibition on schools providing loans, guarantees or securities to any entity or person other than licensed lenders such as banks, deeming them prohibited arrangements within the meaning of the Education and Training Reform Regulations 2017 (Vic). Schools that have entered such arrangements will be required to seek immediate repayment of the loan or unwind guarantees or securities.
5. Multi-school proprietors
The draft provides further instruction on multi-school proprietors, including specific requirements to ensure funds relating to each school are kept separate, decisions are made in the best interests of each school (on a school-by-school basis) and shared services arrangements are formally documented, as well as placing restrictions on levies charged by the multi-school proprietor.
The prohibition set out at paragraph 4 above also applies to proprietors operating more than one school, preventing any cross‑subsidisation or the use of intra‑company loans between schools with the same proprietor.
6. Governance reporting and record keeping
The proposed Guidelines focus heavily on evidence of compliance with the minimum standards for school registration, including:
- the school’s governing document reflecting the Guidelines, for example having specific purposes related to education, strict conflict of interest processes and reference to prohibited arrangements;
- registers of arrangements with related or affiliated entities which demonstrate compliance, noting the broad definition of affiliated entity includes religious community institutions and other community organisations or charity that provides support, services, assistance or land; and
- cyclical reviews requiring 12 months’ of governing body meeting agendas and minutes in addition to school governance policies and procedures.
Next steps
Following consultation, it is expected that the new Guidelines will be available to schools during Term 3, before applying from 1 January 2027.
How we can help
If you require any advice relating to the changes to the Guidelines or assistance in ensuring your school’s governance systems comply, please contact Felicity Iredale, Ben Tallboys, Jonathan Teh or another member of our Education team.
If you would like to stay up-to-date with Russell Kennedy Alerts and Events, you can subscribe to our mailing list here.
The information contained in this Insight is intended as general commentary and should not be regarded as legal advice. Should you require specific advice on the topics or areas discussed please contact the Russell Kennedy team.