Executive summary

To be eligible for financial assistance from the NSW Government (funding), a non-government school (school) must not operate for profit.

The NSW Non-government Schools Not For Profit Guidelines (Guidelines) provides information on the ‘not for profit’ requirements under Part 7, Division 3 of the Education Act 1990 (NSW) (the Education Act). These Guidelines help schools to understand what they need to do to meet the requirements to remain eligible for funding.

The Guidelines set out:

• the different elements of the not for profit requirements under Section 83C of the Education Act
• the legal basis and responsibilities for schools, the Minister for Education and Early Learning (the Minister), the Non-government Schools Not-for-profit Advisory Committee (the Advisory Committee); and the NSW Education Standards Authority (NESA) in relation to the not for profit regulation of schools
• how compliance with the not for profit requirements is assessed and the types of compliance action that may be taken
• the process for seeking a review of certain recommendations
• how schools can comply with the not for profit requirements in relation to common areas of school operations and transactions requirements (including records to maintain).

Schools should read these Guidelines alongside:

• the Education Act 1990 (NSW) (the Education Act)
• the Education Regulation 2017 (NSW) (the Education Regulation).

The Education Act, Education Regulation and these Guidelines are amended from time to time. Schools are advised to access current versions from the NSW Legislation website.

Summary of Guidelines 

The following information provides a summary of what each part of these Guidelines cover.

Part A: Roles and responsibilities

Part A details the roles and responsibilities of NESA, the Minister, the Advisory Committee, schools and proprietors under the Education Act.

Part B: Not for profit requirements

Part B describes the not for profit requirements under the Education Act and Education Regulation.

Part C: Regulatory approach

Part C sets out the processes when assessing compliance with the not for profit requirements, the types of compliance action that can be taken by the Minister when a school has operated for profit or is a non-compliant school, and how schools can seek a review of recommendations of the Advisory Committee.

Part D: Appendix – Common transactions and areas of operation

Part D describes common transactions and activities that schools and proprietors may undertake and how schools can demonstrate compliance in these areas. The transactions and activities listed here are not intended to be an exhaustive list and there may be other circumstances where the Minster determines that a school has operated for profit.

Part E: References

Part E summarises other legislation and provides useful references.

Copyright

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Phone: (02) 9367 8289
Fax: (02) 9279 1482
Email: copyright@nesa.nsw.edu.au
Published by NSW Education Standards Authority
GPO Box 5300
Sydney NSW 2001
Australia
NESA website (www.nsw.gov.au/education-and-training/nesa)

Published version: D2026/82819
April 2026 – Official Notice NESA 18/26