This paper proposes a taxonomy of school funding formula elements which distinguishes between funding based on individual student needs and the needs of populations of students based on particular characteristics or labels. This builds on the theoretical approach proposed by Caldwell, Levacic and Ross (1999) where school funding formulae can be categorized into one of four generations with first generation funding being simple pupil/teacher ratios supplemented by per pupil grants and fourth generation providing comprehensive support for students with differing needs and being related to student learning outcomes. The taxonomy proposed in this paper follows the generic funding model put forward by Odden and Busch (1998) and Fazekas (2012). A suggested broadening of this taxonomy is proposed based on recent evidence in Australia which examined the efficacy of funding formulae based on individual student needs and those based on the average level of need for populations of students based on particular characteristics.