The NSW Department of Education and the state's Education Standards Authority are falling behind in supporting students across alternative and home schools, an auditor-general's report has found.
"The COVID-19 pandemic resulted in significant changes to education, technology and student needs," said the report released on Thursday.
"However, the department has not evaluated or revised its approach to providing alternative school settings since they were first introduced, which ranges from around 30 to 130 years ago."
There were more than 33,500 children enrolled in alternative schooling arrangements from 2019 to 2024.
Enrolment data shows that specific student population, when compared with students in all NSW public schools, is more likely to be Aboriginal and from lower socio-educational backgrounds.
The number of home-schooling registrations alone more than doubled from about 6000 to nearly 13,000 over that five-year span.
Among the findings was a lack of transition paths in and out of these alternative settings to maintain continuity of education.
The auditor-general said the "unique student cohort" demanded the department take a tailored approach, which he said was non-existent.
"Recruitment, staff development and practices in these settings are ad hoc, school-by-school processes instead of leveraging common needs, skills and approaches across the settings," the report added.
Home Education Association of Australia vice president Janelle Barnes said the fastest growing group of children taking up home schooling are neurodivergent and disabled.
"Some parents feel home schooling is a life or death choice, and when you're dealing with families who are in a place of crisis there needs to be a great deal of empathy and not bureaucracy," she told AAP.
"Alternative schooling is often very attractive to parents whose kids don't necessarily fit inside the box of what's convenient."
The report found the NSW education standards authority sought and received a budget boost from Treasury but staffing did not match demand.
Decisions on home-schooling registrations took almost as long as a whole school term, growing by 63 per cent from 40 days in 2019 to 65 days in 2024.
An internal review of the Home School Liaison Program by the department conducted in 2024 found many schools avoided applying to the program because of the administrative burden.
More than $245 million in funding was allocated to support alternative school students in 2024.
The education department said it would accept all the recommendations put forward and was already addressing some of the issues raised, including prioritising work with the home-schooling community.
"In all NSW educational settings, the wellbeing and safety of children remains paramount," a spokesperson said.
Ms Barnes highlighted also how the lack government financial assistance makes it difficult for families to choose to home-school their child.
"The only thing that is the same is that it is parents all around the country trying to do what they think is going to be best for their child."
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