mgpcpastor's blog

So, the High Court declared the funding process by which the Federal Government supported its National Schools Chaplaincy Scheme was invalid, according the Australian Constitution.
The Court did not determine that it was the religious character of the scheme which rendered it unconstitutional, but rather the fault lay with the way in which the Government remunerated the Chaplains.

From ABC news online:

In a majority decision earlier today, the High Court decided funding for the chaplaincy program was unconstitutional because of the payment method used – not because of religious reasons.

I have to admit some surprise that the religious test component was dismissed.
Anyway, also from ABC, the Government’s initial response:

Attorney-General Nicola Roxon says the Government has been doing “contingency planning” in the lead-up to today’s ruling, and is confident it will find a way to keep chaplains in schools.
“We are committed to both the program and the funding for the school chaplaincy program…and there are different ways that we will be able to provide for the program and the funding to continue,” Ms Roxon said.
“It is clear that there is a cure for each of these problems that are identified [by the court] – whether it’s particular legislation, whether it’s payments through the states, whether it’s other sorts of contingency steps that can be taken.”
If the Government decides to pursue a legislative solution to the court’s decision, it is likely to have strong Coalition support.

As to the current status and payment of existing Chaplains:

Federal Schools Minister Peter Garrett wants the issue resolved before the next round of payments are due later this year, and has moved to reassure those employed under the program.
“Any funding that has been received by chaplains or student welfare workers will not be withdrawn,” he said.
“We are committed to maintaining the chaplaincy and student welfare program.”

Read it all here.
I’m not certain what this means for positions which have been recently approved, but which have not yet been filled.
But it would appear that the work of school chaplains will continue for the term of the current funding period.