Private schools are widening their financial lead over public schools, with new national figures revealing a growing resource gap driven by generous government funding and rising fees.
In a ‘school funding brief’, public school advocates Save Our Schools analysed data from the Australian Curriculum, Assessment and Reporting Authority (ACARA) and found that total income per student in 2024 reached $28,642 in Independent schools and $22,067 in Catholic schools, compared to $20,368 in public schools.
The figures have reignited concerns about whether Australia’s funding model is entrenching inequality — particularly as public schools continue to educate the vast majority of disadvantaged students.
Government funding remains a major part of the picture. Catholic schools receive around 75% of their income from public funding, while Independent schools receive close to half. In 2024, that equated to $16,590 per student in Catholic schools and $13,826 in Independent schools.
Over time, the gap has only grown. Since 2009, real funding increases per student have risen by 40% in Catholic schools and 43% in Independent schools — roughly double the 20% increase seen in public schools.
SOS national convenor, Trevor Cobbold, says the result is a system where private schools have steadily built a financial advantage. And in the meantime, public schools are expected to stay underfunded until at least 2034.
“This is because new bilateral funding agreements signed last year [2024 in the case of the Northern Territory] allow state and Northern Territory governments to continue claiming non-SRS expenditures as part of their share of public school funding,” Cobbold said.
“They can claim capital depreciation of up to 4% of the SRS while it is phased in to 2034. An allowance to claim expenditure on school regulatory bodies will also remain in place until 2034. These expenditures are specifically excluded from how the SRS is calculated.”
Cobbold said the Commonwealth and the states “stand condemned” for their refusal to fully fund public schools by 2034.
“It means that children starting school this year will not be fully funded by Year 8 and may spend their entire schooling underfunded if they remain in the public system,” he said.
“This failure to fully fund public schools entrenches inequity, increases social segregation, and undermines national prosperity and social cohesion.”
Cobbold called for governments to accelerate the transition to “genuine full funding” of all public schools.
“The funding agreements must be revised to deliver fairer outcomes,” he said.
“The Commonwealth should lift its SRS share for public schools to 25% by 2029, while state governments should remove the existing 4% allowance for non-SRS expenditure by 2029 and immediately cease new non-SRS claims.”