Australia’s public schools lost more than $2bn in 2023 after state and territory governments used “accounting tricks” to claim the money under non-SRS expenses, according to a new report.
Under federal-state funding agreements, governments must meet minimum annual contributions based on the Schooling Resource Standard (SRS). However, all jurisdictions except the ACT were permitted to include certain non-SRS items – such as student transport costs, capital depreciation and education authority expenses – toward their share.
The review by the National School Resourcing Board (NSRB) found states claimed $2.34bn in these non-SRS expenditures in 2023. Public education advocacy group Save Our Schools (SOS) previously estimated a similar figure at $2.35bn. Because this spending does not increase school resources, the practice reduced real funding to public schools.
The largest reductions in public school funding occurred in NSW ($641m), Victoria ($628m) and Queensland ($568m). Losses in Western Australia and South Australia were $237m and $171m respectively.
“It is abominable that state governments continue to refuse to fully fund public schools, which are their primary responsibility, while continuing to overfund private schools,” SOS national convenor Trevor Cobbold said. “It is another indication of the extent to which the school funding system is biased against public schools.”
Cobbold said the “discrimination in favour of private schools” runs even deeper.
“State governments defrauded public schools by claiming non-SRS expenditures such as depreciation, school transport and expenditure on regulatory authorities as part of their share of funding public schools,” he said. “However, they did not claim such expenditures as part of their share of funding private schools.”
Cobbold said private school students also receiving school transport subsidies and being regulated by state government authorities is “yet another way in which the school funding system is biased against public schools.”
Funding must follow the student, not the sector
Responding to the NSRB review, Independent Schools Australia CEO, Graham Catt said the findings reinforce the need for a funding approach that puts students first, noting that “every student, in every sector, deserves to learn in a well-resourced classroom.”
“ISA strongly supports full and fair funding for every student, in every school, in every sector, including ensuring all government schools receive 100% of their Schooling Resource Standard (SRS) through the Better and Fairer Schools Agreement. We also believe that public debate should be grounded in evidence, not in ideology,” Catt told The Educator.
“The analysis of non-SRS expenditures is interesting, but Mr Cobbold – as is often the case- implies a causal connection where none really exists.”
Catt said the review has helped clarify misconceptions about the role of non-government funding.
“The NSRB report in question does not support the suggestion of ‘private school bias’ or the false implication that Independent schools are somehow responsible for public school under resourcing,” he said.
“The report’s findings sit entirely within state government school funding frameworks, and while it includes a separate calculation of whether or not states met their smaller SRS funding requirement for non-government schools, this is a routine compliance measure.”
Catt said five “simple facts” go a long way in helping people grasp how education funding works in Australia.
“For instance, government schools received $64.8bn in total funding, compared to $9.4bn for Independent schools,” he said. “It’s also important to recognise the major financial role that parents and school communities play in supporting the Independent sector.”
Catt said the latest data shows Australian families contributed $8.9bn in recurrent funding, plus an additional $1.2bn in capital works, on top of government funding.
“Government school students received an average of $24,860 in government funding per student, whereas Independent school students received about $13,080,” he said. “Many Independent students receive less, as base funding is adjusted for parents’ capacity to contribute.”