The NSW Auditor-General has found that the state’s education authorities are failing to adequately support students in home schooling and alternative school settings, according to a new report.
The report found that neither the Department of Education nor the NSW Education Standards Authority (NESA) has effectively supported students receiving their education outside traditional classrooms — including those in home schooling, distance education, hospital schools, intensive learning support schools, and youth justice education settings.
The performance audit, tabled on 25 September, assessed how well NESA and the Department have regulated and delivered education in these alternative environments. The report concludes that both agencies “have not effectively supported eligible students to receive a quality education,” citing significant gaps in planning, monitoring, and evaluation.
Key concerns include the lack of:
- Defined learning and wellbeing outcomes for students in these settings.
- Evaluation of whether these settings are achieving intended outcomes.
- Monitoring or responsiveness to demand to ensure timely access.
- Support for student transitions into and out of these settings to maintain educational continuity.
- Mechanisms for gathering feedback from students and families.
Until May 2025, NESA was responsible for regulating home schooling, before the function transferred to the Department. The audit notes that with this expanded responsibility, the Department must take urgent action to strengthen oversight and support.
The Auditor-General has made three key recommendations:
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Develop a strategy for alternative school settings that recognises their specialised nature, addresses demand, supports student transitions, and establishes clear accountability mechanisms.
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Engage with the home schooling community on reforms to registration and quality assurance, ensuring processes are timely and tailored to home-based learning.
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Identify and mitigate child safety monitoring risks across both home schooling and alternative settings.
The report highlights the scale and diversity of these educational pathways. Between 2019 and 2024, 33,579 students were enrolled in alternative school settings, with around half coming from low or mid-low socio-educational backgrounds. Home schooling registrations more than doubled over the same period — from 5,906 in 2019 to 12,762 in 2024 – and 54 per cent of those students had previously attended a NSW public school.
In 2024, a total of $246 million was allocated to fund the state’s alternative school settings.
The Auditor-General’s findings call for a clearer statewide vision to ensure all students — regardless of where or how they learn — have equitable access to a high-quality education and the support they need to succeed.
Access the full report here




