Capital based kilometric (individual or cluster) school bus services guidelines and conditions

On this page

• Applying for SchoolBUS funding
• When can service providers apply for funding?
• Which buses qualify for funding?
• Funded bus specifications
• Allocated vehicle category
• Funding details
• Funding payment schedule
• Funding amount
• Funding caps
• Vehicle funding category
• When can service providers introduce a funded bus into service?
• When will service providers receive payment?
• Contract service payments
• Service provider obligations
• SchoolBUS Agreement
• Operating the funded school bus
• What happens if the service contract is to be sold?
• What circumstances require repayment of the funding?
• Closure of services
• Institution of new service
• Split of service
• Further information
• Attachment A
• Mandatory specifications for funded large buses
• Mandatory specifications for funded small buses

Applying for SchoolBUS funding

When can service providers apply for funding?

The Queensland Government will notify service providers each school year and call for applications to be submitted for funding towards the purchase of a new bus in the coming financial year. The closing date for receipt of applications will be outlined in the notification.

Service providers may submit multiple applications for funding.

Service providers are required to submit a completed SchoolBUS application, along with the required documents that are listed in the application at the time of submitting the application. Failure to do so may delay the progress of applications. In some cases, we may request the service provider to complete a student travel survey as part of the application process.

If at any time between a service provider receiving funding approval and taking delivery of the bus, the specification of the bus or the price of the bus changes, the approved service provider must contact our Fleet Management Unit to discuss the issue. Failure to do so may affect the final grant amount paid to the service provider.

Service providers are advised to not obtain a quote or purchase a bus until the outcome of their SchoolBUS application is notified by the department.

Note: Funding is not available where the service provider and the seller of the funded school bus (vendor) are related personally or professionally, unless the relationship is disclosed to and approved by the State. If you require more information about this condition, please contact the our Fleet Management Unit before applying.

Which buses qualify for funding?

Capital–based kilometric school bus services are those services which after 1 July 2009 replace older buses that meet certain criteria. Unless otherwise approved by us, to qualify for funding the bus must:

1. Become the qualifying age or older within the 2026–27 financial year:


• 16 years (buses with 20–29 passenger seats)

or

• 20 years (buses with 30+ passenger seats)


2. be used on a service contracted to us that principally carries eligible students who are assisted under the School Transport Assistance Scheme (STAS)
3. be registered in the name of the service provider who holds a service contract with us to provide the service on which the bus operates
4. have not reached the maximum age limit under the relevant legislation.

Note:

• Some pre–2009 vehicles were classified as a C3 category large bus but have less than 30 seats. For replacement and maximum age, buses with a seating capacity between 20–29 are classified as a small bus, and buses with a seating capacity of 30+ are classified as a large bus for STAS purposes, irrespective of the buses’ GVM. As such, vehicles with 20–29 seats are eligible for replacement at 16 years of age and must be replaced before they reach 20 years of age.
• Early replacements for growth, problematic or uneconomical to repair buses will be considered on a case–by–case basis. For further information, contact our Fleet Management Team.

Funded bus specifications

To be eligible for funding, unless otherwise approved by us, the funded bus must:

1. be a new bus (that is, it must not have previously been registered anywhere), or a used bus less than 5 years of age
2. not have provided STAS funded school services in Queensland
3. comply with the mandatory specifications detailed in Attachment A of this information statement
4. be purchased outright (with or without finance) by the service provider who holds the relevant Prescribed School Service Contract (PSSC) (under Chapter 6 of the Transport Operations (Passenger Transport) Act 1994) with us.
5. be sold to and registered in the service provider’s name who holds a service contract with us to provide the service on which the bus
6. be the size required for the task of transporting all eligible students.

Allocated vehicle category

The table below lists the allocated vehicle category sizes for capital and contract payments under the capital–based kilometric system.

Conditions

• The minimum numbers of seats must comply with the requirements identified in this table.
• Passenger seating is based on standard 4–across format in an NC5 category.

Note:

• Allocated vehicle categories are determined on a case–by–case basis, based on factors such as the seating capacity required for eligible students, requirements for additional capacity and future demand.
• If the above factors indicate that a vehicle with 30 or more seats is required, we will provide funding for a large bus (NC5). New NC3 and NC4 vehicles (with 30 to 56 seats) are no longer routinely funded through SchoolBUS.

Funding details

Funding payment schedule

Funding for buses which operate under the capital–based kilometric service system is paid on the following basis:

• Capital component — the service provider purchases a bus to a value approved by us. The approved capital amount is then paid to the service provider in a lump sum amount in each of the first 2 financial years and then by an annuity over the ensuing 5 or 8 financial years, depending on the size of the bus.
• The capital funding is determined by the cost of the bus and an applicable funding cap. Funding caps for small and large buses are shown in section 3.3 Funding Caps.
• For small buses, the lump sum rate is 20 % of the approved cost of the bus, and the annuity period is 5 years. For large buses, the lump sum rate is 25 %, and the annuity period is 8 years.

Example:

Note: Capital funding for NC1 buses is provided through a Vehicle Purchase Allowance. Contact your local Passenger and School Transport Regional Office for further information.

Funding amount

Provided a service provider has a bus that qualifies to be replaced, the following funding is available to purchase a school bus.

Note: Buses that have attained the age of 5 years or greater at the date of purchase will not attract any capital funding.

Funding caps

Listed below are the capital funding caps for a small and large category bus. These limits will be in place until the end of the 2026–27 financial year, at which time they will be reviewed.

Note: Funding is based on GST exclusive pricing. We pay the GST on the final approved funding amount. Funding for full stamp duty is available on the purchase of the bus and is subject to funding caps

Funding does NOT include:

• on–road costs (registration and insurance)
• any amount above the relevant funding cap, unless indicated otherwise in the vehicle specifications.

Vehicle funding category

A funded school bus is given an approved ‘allocated vehicle category’ by the department (see section 2.4 Allocated vehicle category).

This category determines both the funding cap for vehicle purchase and the fixed and variable payment rates for STAS contract payments. This category will be maintained until the bus reaches 16 years of age if it is a small bus or 20 years of age if it is large bus, even if student numbers decrease during this time. At the next annual 1 July Kilometric Payment Category Review after the conclusion of this period, the correct payment category (based on the number of eligible students travelling on the service) will be paid from that 1 July review date.

When can service providers introduce the funded bus into service?

Prior to a funded bus being introduced into service, the following must be provided to us to confirm the bus complies with the required specifications:

1. A service provider declaration, declaring the bus complies with the mandatory specifications as per the SchoolBUS Guidelines and Conditions 16A/2026.
2. The service provider provides proof of current comprehensive insurance cover, any copies of certificates of modification (if applicable) and any relevant vehicle details as requested by us.

When will service providers receive payment?

Funding is only paid after the service provider purchases the school bus and meets the below requirements. Service providers must therefore take this into consideration when structuring finance arrangements.

The following requirements must be met to ensure the required accountability and audit processes for the expenditure of public monies are met, with funding only being paid after:

1. The above conditions outlined in ‘When can service providers introduce the funded bus into service?’ have been met.
2. The following documentation has been provided to our Fleet Management Unit:
   • proof of purchase (for example, receipt, final tax invoice with a $0 balance)
   • proof of current comprehensive insurance cover
   • fully executed SchoolBUS Agreement.

After satisfying the above requirements, the first funding payment will be made within 20 working days by electronic funds transfer to the service provider's STAS payments account. If the above requirements are not satisfied, no SchoolBUS funding can be paid.

Note: Funding will only be paid after the commencement of the financial year for which funding has been approved.

Contract service payments

Service providers will receive contract service payments as detailed in their applicable service contract.

Service provider obligations

SchoolBUS Agreement

Obligations regarding the funding under SchoolBUS will be set out in the SchoolBUS Agreement.

Operating the funded school bus

A funded school bus must be introduced into service as soon as practical after delivery and be used to deliver the school service on the nominated route for its economic life.

This means the funded school bus must always be used to provide the school service and can only be used for other purposes during times that are outside of the school service timetable.

The service provider must not sell the funded school bus or transfer the funded school bus to another service during its economic life without the prior approval of the department.

Failure to meet these requirements constitutes a breach of the service provider’s funding agreement and key performance indicators under the service contract. Such breaches may lead to the cancellation of the service provider’s service contract.

Note: Funded buses have an economic life of 12 years for small buses or 15 years for large buses from the date of first registration, unless otherwise approved by us. For used buses under 5 years of age, we may require the service provider to provide evidence of the date of first registration.

What happens if the service contract is to be sold?

Unless otherwise approved by us:

1. the sale of a service contract must include the sale of the funded school bus to the new service provider
2. the new service provider must agree to use the funded school bus on the route approved for the operation of the funded school bus for the balance of its economic life.

What circumstances require repayment of the funding?

If the service provider does not use, or ceases using, the funded school bus on the relevant services under the contract without prior written approval from us, the service provider will be required to repay us, within 10 working days after such an event, capital funding paid to date as per the repayment schedule listed in the SchoolBUS Agreement.

In the event of unforeseen circumstances relating to the service provider's obligations to use the bus, the department will negotiate any requirement for repayment of funding with the service provider on a case–by–case basis.

Closure of services

In the event that a capital–based kilometric school bus service is closed due to insufficient eligible students to maintain the service as a result of opening or closure of schools or for other reasons, we and the service provider will negotiate any requirement for repayment of funding on a case–by–case basis.

Institution of new service

In the event that a new capital–based kilometric service is started, the service provider of the new service must provide a new bus or a used bus less than 5 years of age of the appropriate capacity. Capital funding may be available from us. Service providers should complete and submit a SchoolBUS application.

Split of service

If a standard or capital–based kilometric school bus service is split because of excessive student numbers, timetabling or other issues, the new service must have a bus less than 5 years of age introduced into service not more than 12 months after the new service is instituted, unless otherwise approved by us. Capital funding may be available from us. Service providers should complete and submit a SchoolBUS application, along with the required documents listed in the SchoolBUS application.

Further information

For more information, contact your local Passenger and School Transport Regional Office or email [email protected].