Changes to not for profit regulation
NESA is improving the regulation of not for profit requirements for non-government schools. Learn about the reform process, timeline and what is changing.
Non-government schools must meet not for profit requirements to receive government support.
The NSW Education Standards Authority (NESA) is improving:
- regulatory processes
- guidance for schools.
Implementation of changes
The NSW Government is in the process of:
- making it clearer which activities do not breach not for profit requirements
- developing faster, less costly ways of resolving compliance matters
- transferring responsibility for regulation from the NSW Department of Education to NESA
- making NESA's role clear and transparent
- expanding the role of the Non-Government Schools Not-for-Profit Advisory Committee.
These changes aim to:
- improve clarity for non-government schools
- make regulation more efficient
- ensure schools receiving government funding use their income and assets to operate the school and educate students.
Resources and support for non-government schools
NESA will provide tools to help schools understand and comply with the changes.
We will publish these resources in stages as the reforms roll out:
- updated Not-for-Profit Guidelines
- information sheets
- case studies
- webinars
- newsletters.
Schools can also contact NESA with any questions.
Reform timeline
October 2023
- The NSW Government announced a review of section 83C of the Education Act 1990 (NSW) and related provisions.
- The Deputy Premier and Minister for Education and Early Learning, Prue Carr, appointed:
- Professor Tom Alegounarias to lead the review
- NESA to provide support.
- Stakeholder engagement began.
- An issues paper was released for public consultation.
February 2024
Public written submissions to the review closed.
August 2024
- The Government released the section 83C Review Report. The Report included recommendations to improve regulation of not for profit requirements.
- Work began on putting the reforms into action.
Read the full Review of section 83C and related provisions of the Education Act 1990 (NSW) report (PDF 1.05MB).
December 2024
The Minister appointed Carol Matthews to the Non-Government Schools Not-for-Profit Advisory Committee. Carol is the Secretary of the Independent Education Union of Australia.
February 2025
Regulatory responsibility moved from the NSW Department of Education to NESA.
March 2025
- The 83C Consultation Group was formed to facilitate key stakeholder engagement. It included representatives of:
- Independent Schools NSW (ISNSW)
- Catholic Schools NSW (CSNSW)
- the Non-Government Schools Not-for-Profit Advisory Committee.
- Two workshops were held with the Group to discuss:
- making regulations clearer about the services and functions that do not breach not for profit requirements
- developing more efficient ways of addressing compliance issues.
May 2025
At a third workshop, the Group discussed how to make not for profit information clearer for school systems.
July 2025
The Parliamentary Council Office (PCO) began drafting updated regulations and NFP Guidelines.
Next steps
We are currently working towards:
- stakeholder consultations on the draft regulations and updated NFP Guidelines
- release of final:
- regulations
- NFP Guidelines
- supporting materials.
Stay up to date
NESA will update this page with the latest information about not for profit reforms.
You can also subscribe to our newsletter or contact our team.