PUBLIC FUNDING SHOULD SUPPORT PUBLIC EDUCATION, NOT OVERFUNDED PRIVATE SCHOOLS

The AEU rejects Independent Schools Australia (ISA) attempt to reframe the national debate on school funding, saying the real issue is not school choice, but inadequate funding of Australia's public schools.

AEU Federal President Correna Haythorpe said taxpayer funds for education must be directed where they deliver the greatest public benefit: public schools.

The ISA's campaign ignores the growing inequity in Australia's education system, where many private schools continue to receive generous Government funding while public schools remain under-resourced.

“Australia has one of the most inequitable school funding systems in the OECD. Many private schools receive millions of dollars in taxpayer funding while also collecting substantial fees,” Ms Haythorpe said.

“At the same time, public school teachers are working incredibly hard with limited resources to provide the education and support students need.”

“Governments have a responsibility to ensure every child has access to high-quality public education, regardless of where they live or their family's income. That means prioritising investment in Australia's public schools.”

This call from ISA comes at a time when private schools are now publicly subsided to a greater extent than ever before.

Over the last decade private schools in Australia have benefited from a number of special deals from the Commonwealth, including the $1.2 billion Choice and Affordability Fund, $3.2 billion in overfunding through to 2029 to transition down to 100% of the Schooling Resource Standard (SRS), and over $1.6 billion from the Commonwealth for capital works.

The ISA itself says over 30% of private schools were overfunded by the Commonwealth in 2025: As of 2025, 857 schools have already transitioned to 80% and there are 383 Independent schools still above 80%. Of the schools funded above 80% in 2025, 73 of them are funded less than 81%. (ISA SRS Funding Model Explainer 2025)

ISA says over 30% of private schools were overfunded by the Commonwealth in 2024 and more schools than 2023: “As of 2024, there are 385 Independent schools still above 80% and 843 schools have already transitioned to 80%.”(ISA SRS Funding Model Explainer 2024))

The Productivity Commission’s Report on Government Services 2026 showed:

• Growth in government funding to private schools (from both the Commonwealth and States/Territories) has outpaced funding growth for public schools by 30.6% over the last decade.
• Commonwealth funding to private schools has increased by 43.2% in real terms on a per student basis over the decade from 2014-15 to 2023-24.
• Private schools received $17.96 billion in Commonwealth funding in 2023-24 – 62% of all Commonwealth funding to schools.
• The true total recurrent funding per FTE student in government schools was $21,550 in 2023-24, not $26,140 as claimed by the ISA.

“These facts expose a deeply unfair school funding system, with government funding growth continuing to favour private schools over public schools despite rising student need,” Ms Haythorpe said.

This inequity is particularly egregious when it comes to school capital infrastructure.

The AEU's recent report The Building Divide in Australian Schools found private schools outspent public schools on capital infrastructure by $38 billion over the past decade, including $5.4 billion in 2023 alone. There is no current Commonwealth capital funding program for public schools.

• From 2017 to 2025 the Commonwealth Non-Government School Capital Grants Program has provided $1.6 billion in Commonwealth funding to private schools.
• The average grant over these nine years has been $1.034 million and 1,546 private schools have received Commonwealth grants in this time.
• In 2026, the fund will provide $258 million to 181 private schools at an average of $1.42 million for each grant.
• The Commonwealth is planning a further $3 billion in grants to private schools through to 2034.

“Our Schools for Our Future Inquiry has heard from teachers, principals and communities across Australia who are doing extraordinary work in classrooms that are overcrowded, ageing or no longer fit for purpose,” Ms Haythorpe said.

“While some private schools are building literal castles, many public schools are waiting years for basic classroom upgrades, air conditioning, adequate toilets or learning spaces that meet the needs of students.”

The Productivity Commission’s Report on Government Services 2026 also showed private schools educate less than half the number of students from low Socio-Educational Advantage background households than public schools do – 31.5% of students in public schools are from the lowest quartile of Socio-Educational Advantage compared to 13.7% in private schools.

“Public schools are doing the heaviest lifting in our education system, yet governments continue to fund them as if all schools face the same challenges,” Haythorpe said.

“That is not equitable, and it is not delivering the outcomes students deserve. That public responsibility should be reflected in government investment.”

The AEU recognises the Albanese historic investment to fully fund public schools, with $20 billion of Commonwealth funding going to public schools over the next decade. Ms Haythorpe said these Better and Fairer Schools Agreements were an important step towards ensuring public schools are fully funded, but governments must resist calls to divert scarce education funding away from the public system.

“The question is not whether families can choose a private school, the question is whether every child can rely on a strong, well-funded local public school,” Ms Haythorpe said.

“Public education is the foundation of Australia's education system. It deserves to be funded as the national priority rather than taxpayer dollars continuing to subsidise already well-resourced private schools.”

ENDS

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