Studies on School Expenditure and Student Achievement

The following is an updated list of studies since 2000 that employed sophisticated statistical methods to analyse the impact of changes in school expenditure on student outcomes. The list is drawn from a new meta-analysis of the studies published by the US National Bureau of Economic Research and a new review of the literature published by the Albert Shanker Institute in the United States.

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Public Schools Bear the Greatest Burden of Disadvantage

A new research paper published by Save Our Schols shows conclusively that public schools bear the greatest burden of disadvantage but are not resourced to overcome its effect on learning outcomes. Public schools have to do a lot more with far fewer resources than  Catholic and Independent schools.

The study shows that income per student in public schools is 91.5% of the income of Catholic schools but the percentage of students from low socio-educationally advantaged (SEA) families in public schools is nearly 200% of that in Catholic schools. Income per student in public schools is only 70.5% of that of Independent schools while their percentage of low SEA students is 285.6% of that in Independent schools.

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Elite Private Schools Whine About Cuts to Their Millions in Over-Funding

Many of Australia’s richest and most exclusive private schools increased their fees for 2025 by between five and 10 per cent, some by even more. Several schools blamed cuts in Federal Government funding as a factor causing them to raise fees. The claims are vastly exaggerated and served only to prompt alarmist headlines about private schools losing funding.

Nothing could be further from the truth.

First, very few private schools will have their funding reduced over the next five years. Almost all private schools will receive funding increases and those that don’t constitute the most over-funded schools in the country, being over-funded by hundreds of millions of dollars. Second, several schools complaining about funding cuts will actually continue to have their funding increased.

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No Christmas Presents for Public Schools

There are no Christmas presents for public schools in new interim funding agreements between the Albanese Government and the major states. Government funding shares for public schools in NSW, Victoria, Queensland and South Australia in 2025 will be largely stuck at their previous levels because of continued squabbling between government levels. Public schools in these states will remain  massively under-funded in 2025.

The interminable squabbling between governments over their respective shares of funding public schools is both disgraceful and scandalous. It hinders the learning progress of disadvantaged students and perpetuating large achievement gaps between rich and poor.

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Private Schools Opportunist Attempt to Lock-In Over-Funding

Private schools have seized on an opportunity provided by an Amendment Bill before the Parliament to attempt to lock-in billions in Commonwealth over-funding for years to come. In a submission to a Senate inquiry on the Bill, Independent Schools Australia (ISA) has proposed that the current cap on Commonwealth funding be replaced by a floor. If adopted, it will open the door for a future government to arbitrarily increase the Commonwealth share of funding for private schools without any parliamentary scrutiny. Such a move would further widen the already huge resource gap between independent and public schools.

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Labor’s Amendments to the Education Act Fail to Ensure Full Funding of Public Schools

The Labor Government‘s proposed amendments to the Australian Education Act fail in their goal to provide “a pathway to full and fair funding for all schools”. Obstacles remain in the pathway for public schools. The amendment Bill makes a minimalist change to the limit placed on Commonwealth funding of public schools by the Turnbull Government. It fails to remove the blockage erected by the Morrison era funding agreements that allow the states to use “accounting tricks” to defraud public schools of billions in funding.

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Labor’s Amendments to Education Act Will Not Ensure Full Funding of Public Schools

The Federal Education Minister, Jason Clare, has tabled a Bill in the Parliament to amend the Australian Education Act to provide “a pathway to full and fair funding for all schools”. However, the pathway is blocked for public schools and the Bill fails to remove all impediments to full  and fair funding for public schools. It also creates a pitfall that could delay funding increases in future. Public schools will remain under-funded by billions even if all states and territories sign up to the Better Fairer School Funding agreements. Other amendments to the Act are needed to support full funding for public schools.

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Jason Clare’s Big Lie on Public School Funding

The Federal Education Minister, Jason Clare, has adopted the “big lie” approach on school funding. He says that special allowances for state funding of the Schooling Resource Standard (SRS) of public schools are “part of the SRS”. This is factually incorrect. It is contradicted by official documents, his own previous statements and statements by his predecessor while in opposition who said they are “accounting tricks”.  

The issue concerns the types of expenditures the states can claim as part of their share of funding public schools. The new funding agreements with Western Australian and the Northern Territory governments (and presumably also with Tasmania) for 2025-2029 allow them to claim funding for capital depreciation and school transport up to 4% of the SRS of public schools. They can also claim expenditures on school regulatory authorities such as curriculum and standards bodies.

Clare’s claim these expenditures are part of the SRS is refuted by:

  • Guides published by the Australian Curriculum Assessment and Reporting Authority (ACARA);
  • His own agreements with the WA and NT governments;
  • Previous bilateral funding agreements;
  • His own previous comments about the “accounting tricks”; and
  • His predecessor in Opposition.
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Public Schools Could Lose Nearly $30 Billion if Funding Stand-Off Continues

Public schools potentially stand to lose nearly $30 billion in funding over the next five years if the stand-off between the Commonwealth and five states is not resolved. National Convenor of Save Our Schools, Trevor Cobbold, said failure to agree on future funding will be catastrophic for public schools.

“Public schools could be denied up to $28.1 billion in funding if the states refusing to sign a new funding agreement choose not to increase their share of funding the Schooling Resource Standard (SRS).”

“Public schools in NSW would miss out on $8.7 billion, those in Victoria and Queensland $8.4 billion, $2 billion in South Australia and $0.6 billion in Tasmania. The ACT is also refusing to sign but it is not under-funded.”

Mr. Cobbold said that public schools could miss out on billions in funding because the existing funding agreements will be rolled over if the recalcitrant states refuse to sign the Better and Fairer Schools Agreement 2025-2034.

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WA Public Schools Defrauded by New Funding Agreement

The public education advocacy group Save Our Schools has accused the Prime Minister of lying about the future funding of Western Australian public schools. “It is a blatant lie to claim that WA public schools will be fully funded under the new schools agreement”, said SOS National Convenor Trevor Cobbold.

“Far from being fully funded by 2026, WA public schools will be under-funded by about $1.6 billion over the next five years. WA public schools will be funded at slightly less than 96% of their Schooling Resource Standard (SRS) in 2026 and remain so until at least 2029.

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