New data reveals public schools are slipping further behind as government funding growth continues to favour private education despite rising student need.
The Productivity Commission’s latest Report on Government Services show that private schools are now receiving a larger share of government funding than ever before, with the proportion climbing steadily over the past decade.
Australia’s peak teachers union says that instead of levelling the playing field, funding disparities mean that Australia’s most disadvantaged students – overwhelmingly educated in public schools – are being left to make do with less.
The funding tilt has sharpened over the past decade. In 2013–14, private schools received 67.7% of the combined government funding per student allocated to public schools. By 2023–24, that figure had climbed to 70.8%. Over the same period, Commonwealth and state funding to private schools grew 30.6% faster than funding to public schools — both in total dollars and on a per-student basis — entrenching a divide that shows no sign of narrowing.
“This is yet another year where the data shows that private schools continue to receive the lion’s share of government funding growth while public schools are being short-changed,” AEU federal president, Correna Haythorpe, said.
“Despite educating the vast majority of students with the highest needs, public schools are falling further behind because governments continue to prioritise funding growth for private schools.”
Alarmingly, the Report also shows that per-student government funding for public schools went backwards in the last year, driven by a decline in primary school funding. Funding per primary student fell from $18,942 in 2022–23 to $18,853 in 2023–24, while overall recurrent funding per public school student declined for the first time in a decade
“When funding per student goes backwards, schools feel it immediately in larger classes, fewer teachers and support staff and less capacity to meet student needs,” Haythorpe said.
“This is happening at a time when public schools are educating more than twice the proportion of students from low socio-educational backgrounds, and when the number of students requiring disability adjustments has increased by more than a third in just four years.”
The Report confirms that public schools now educate 31.5% of students from low socio-educational backgrounds, compared to just 13.7% in private schools, and that 27.2% of public school students required an adjustment for disability in 2024
“Public schools are doing the heaviest lifting in education, and it is the teaching profession whose expertise and commitment are the primary reason an underfunded public education system works as effectively as it does,” Haythorpe said.
“The latest data from ROGS shows the inequality between sectors clearly and is a wake up call to all governments that funding for public education must be urgently prioritised.”
“The lack of funding is putting the teaching profession in crisis with unmanageable workloads, leading to high levels of stress, burnout and teacher shortages.”
Haythorpe said these issues can all be addressed with proper resourcing.
“With seven state and territory governments having signed new funding agreements with the Albanese government, we have a unique opportunity to invest in recruitment and retention of teachers, specialists and education support staff and help schools better meet the needs of every child.”
In a positive development, the Report shows that government investment in vocational education and training has increased since 2020, with around 75% of funding directed to TAFE. However, several states have increased the share of funding flowing to non-TAFE providers, and total funding paid to non-TAFE providers rose to $1.6bn in 2024
“TAFE has rightly regained a central role in VET, but governments must resist shifting public funding back towards private providers and ensure TAFE is properly funded as the public provider,” Haythorpe said.
In early childhood education and care, total government expenditure reached $20.3bn in 2024–25, with per-child spending increasing nationally but unevenly across states. Workforce pressures remain acute, with nearly one in five paid contact staff lacking a relevant ECEC qualification, and higher reliance on staffing waivers in remote areas
“ECEC funding growth is welcome, but it won’t deliver quality outcomes unless it is matched by workforce investment and a stronger public role,” Haythorpe said.
“Across schools, TAFE and early childhood, the message from this Report is clear that equity, workforce capacity and public provision must be at the centre of government policy.”