New figures show that Independent schools have a major resource advantage over Catholic and public schools in NSW. Government funding increases have favoured Catholic and Independent schools over public schools since 2009. Catholic and public schools now have similar resource levels. However, public schools remain massively underfunded for the challenges they face while Independent and Catholic schools are overfunded. The favourable funding for private schools is a key factor behind the enrolment shift to these schools.
The new figures published by the Australian Curriculum Assessment and Reporting Authority (ACARA) show that the total income per student in public schools in 2024 was $20,916, similar to that of Catholic schools at $20,926 but $9,468 per student less than the $30,384 per student in Independent schools [Chart 1]. The total income per student in Independent schools is 45% more than that of public schools.
Government funding accounts for 79% of the income of Catholic schools and 44% of the income of Independent schools. In 2024, Catholic schools received $16,629 per student from the Commonwealth and NSW governments and Independent schools $13,324.
Commonwealth and NSW government funding, adjusted for wage and price increases to estimate the real increase in human and material resources, increased by similar amounts in public and Catholic schools – $2,832 and $2,902 per student respectively [Chart 2]. Government funding for Independent schools increased by $2,243 per student. But the percentage change was much larger for Catholic and Independent schools than for public schools – 36% for Catholic schools and 35% for Independent schools compared to 27% for public schools.
Commonwealth Government funding for Catholic schools increased by $2,832 per student and by $2,314 for Independent schools compared to only $1,369 for public schools. NSW Government funding for public schools increased by $1,463 per student. This was significantly more than the national average for state/territory funding of $972 per student. This increase was instrumental in ensuring that total funding per student in public schools increased by almost the same as for Catholic schools.
NSW Government funding for Catholic schools increased by $70 per student and fell by $71 for Independent schools.
The increase in total income per student in Catholic and Independent schools was much larger than for public schools. It increased by $3,270 in Catholic schools and by $3,580 in Independent schools compared to $2,704 in public schools.
It is abysmal that governments continue to ensure that Independent schools have a huge resource advantage over public schools when it is public schools that do the heavy lifting in overcoming socio-economic disadvantage to improve equity in education, increase work force skills and strengthen social cohesion. Income per student in Independent schools is 45% higher than in public schools. Government funding provides a significant proportion of this resource advantage. Yet research by Save Our Schools shows that only 10% of Independent students in NSW are from low income families compared to nearly one-third (32%) of public school students (2023 figures). Independent schools enrol only 7% of all low income students in NSW while public schools account for 81% of these students.
Moreover, only 8% of Independent schools are disadvantaged schools (defined as having over 50% of students from the lowest socio-educationally advantage quartile) compared to 33% of public schools. Independent schools account for only 4% of all disadvantaged schools in NSW while public schools account for 94%.
While NSW Catholic schools have a similar total resource level per student to public schools, Catholic schools have an effective resource advantage because they educate a much smaller proportion of socially disadvantaged students than do public schools. This means that a lower proportion of Catholic school income is absorbed by disadvantaged students and more is available for less disadvantaged students.
In 2023, only 16% of Catholic students were from low income families, half that in public schools (32%). Catholic schools enrol only 12% of all disadvantaged students in NSW compared to 81% of these students by public schools. In addition, only 2% of Catholic schools are disadvantaged (over 50% of students from the lowest socio-educationally advantage quartile) compared to 33% of public schools. Catholic schools account for only 1% of all NSW disadvantaged schools compared to 94% by public schools.
The Report on Government Services 2026 shows that 81% of students from low socio-educational families in NSW, 82% of Indigenous students and 80% of remote and very remote area students are enrolled in public schools.
Clearly, government funding in NSW is not being directed at the students and schools most in need.
Historical trends
The pattern of government funding, fees and other income and total income per student have varied between school sectors over the period of 2009 to 2024.
Real government (Commonwealth and state/territory) funding for public schools fell in both the pre- and post-Gonski periods, declining from $10,343 per student in 2009 to $10,170 in 2015 [Chart 3]. This was due to a significant reduction in NSW Government funding which extended to 2017 and was only offset by Commonwealth funding from2015 [see Chart A1 below]. NSW Government funding fell from $8,979 in 2009 to $8,379 in2 017. Since then, government funding per student has increased significantly, mainly due to increased NSW government funding. Total government funding increased by $2,973 per student between 2017 and 2023 but fell by $281 per student in 2024.
By contrast, government funding for Catholic and Independent schools has increased steadily since 2009. Independent schools received generous Commonwealth financial assistance during COVID under the JobKeeper scheme amounting to $124 million as well as additional cash flow stimulus payments. Commonwealth funding for Catholic schools increased by $346 per student in 2020 and by $637 in Independent schools.
Government funding for Catholic schools as a proportion of funding for public schools increased from 77% in 2009 to 86% in 2020 and reduced to 83% in 2024. The Independent school proportion increased from 63% to 75% in 2020 and has fallen to 66% in 2024.
Income from fees, charges, donations, investments and other sources in Catholic and Independent schools has increased by more than wage and price increases since 2009. Adjusting for wage and price increases, this source of income increased by $368 per student in Catholic schools and by $1,150 in Independent schools between 2009 and 2024 [Chart 4]. Income from these sources fell by $29 per student in public schools.
Prior to COVID, income from fees and other private sources increased by $178 per student (adjusted for inflation) in Catholic schools and by $1,356 in Independent schools. In 2020, this income fell by $357 per student in Catholic schools and by $791 in Independent schools.
JobKeeper and the cash flow stimulus payments allowed Catholic and Independent schools to reduce their fees in 2020. Nominal fees in Catholic schools fell by $234 per student and by $417 in Independent schools. Income from donations and other private sources also fell in 2020 in both sectors. Since 2020, income from fees and other sources have increased faster than inflation in Catholic and Independent schools. Public schools also experienced a drop in income from fees and donations in 2020 from $601 to $356 per student.
The combination of increasing government funding and income from fees and other private sources has enabled private schools to build a substantial resource advantage over public schools since 2009. In 2009, total income per student, adjusted for inflation, in public schools was $506 higher than in Catholic schools [Chart 5]. This advantage was eliminated by 2013 and Catholic schools have maintained a small advantage over public schools ever since except for 2023.
Increased government funding and private income has magnified the resource advantage of Independent schools. In 2009, the total income per student in Independent schools was $5,366 higher than in public schools. By 2024, this had increased to $6,242 and their total income per student was 146% of that of public schools. The resource advantage of Independent schools has declined in recent years as a result of the fall in real income from private sources and increased government funding for public schools.
Despite the small reduction in the resource advantage held by Catholic and Independent schools, public schools remain vastly underfunded for the task they face in educating the large majority of low socio-economic status (SES), Indigenous, remote, very remote and high disability students. As noted above, public schools do the heavy lifting in education but are not funded to do the job.
Underfunding of public schools
In 2026, public schools in NSW are funded at 90% of their Schooling Resource Standard (SRS) [Chart 6]. The total underfunding for the year is estimated at $1.8 billion. Under the terms of the new bilateral funding agreements, public schools will remain under-funded to 2034 and beyond, although the extent of the underfunding will gradually decline to about $890 million in 2034. By contrast, Catholic and Independent schools in NSW are overfunded at 102% of their SRS as revealed in figures supplied to Senate Estimates and in the bilateral funding agreement.
Public schools will remain underfunded until at least 2034 because the new bilateral funding agreement between the Commonwealth and NSW governments allow the NSW Government to continue to claim non-SRS expenditures as part of its share of funding public schools. It can claim capital depreciation up to 4% of the SRS as part of its share of funding public schools but the percentage share allowed will be reduced annually by small amounts until it is eliminated in 2034.
The NSW Government is also allowed to claim other non-SRS expenditure as part of its share of funding public schools. It can continue to claim expenditure on the Education Standards Authority and up to 1.8% of the SRS on non-SRS expenditure allowed in bilateral agreements with other governments, most of which are for direct school transport for public school students. These concessions ensure that public schools will still be underfunded in 2034 even though the 4% allowance will end in 2034.
The Commonwealth and the NSW governments 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, possibly, will spend their whole school career underfunded if they remain in the public system. The failure to fully fund public schools maintains inequity in education, increases social segregation and restricts national prosperity and social cohesion.
The Commonwealth and NSW governments should accelerate the transition to genuine full funding of all public schools. The funding agreements must be revised to give public schools better and fairer funding. The Commonwealth should accelerate the increase in its funding share of the SRS public schools to achieve 25% by 2029 and the NSW Government should remove the existing 4% and regulatory expenditure allowances by 2029.
Attachment Charts
