THOUSANDS of independent schools could be deprived of government funding next year because of a political impasse over Federal Government plans to force them to teach a national curriculum and disclose their sources of private income.

The Opposition and Family First said yesterday that they would vote against the new requirements, included in legislation delivering $28 billion in funding for independent and Catholic schools over the next four years.

But the Minister for Education, Julia Gillard, rejected calls by the Opposition to split the funding from the requirements on the national curriculum and private income that are central elements in the Government's schools policy agenda.

With only three parliamentary sitting days left this year, if both sides hold their ground the legislation would fail to pass the Senate and federal payments to independent schools would dry up from next month.

The Association of Independent Schools of NSW does not favour the Government's plan to require private schools to declare all sources of funding but strongly supports the Senate passing the Schools Assistance Bill to secure the new four-year funding deal.

The Association's executive director, Geoff Newcombe, said the debate about whether schools should report their income sources publicly should be delayed until after the legislation was passed. Attempts to amend the bill had put crucial funding at risk, he said.

"Too much depends on this bill. Let the bill pass. Non-government schools have already prepared budgets and cashflow forecasts for 2009 which in many cases are dependent on their receipt of government funding in January next year. This funding is critical to the education of over 1 million Australian children over the next four years."

However, Dr Newcombe said schools were concerned that publication of information about their funding sources, which is required as a condition of funding under the legislation, would lead to misrepresentation of the data and unfair comparisons between schools.