These are the key points of a new brief on the state of school funding in Victoria. The full paper can be downloaded below.
Victorian public schools face a funding crisis that must be addressed in the forthcoming Victorian Government Budget.
- Public schools are massively underfunded and have been since the Gonski funding model was introduced in 2014 to ensure they are fully funded at the Schooling Resource Standard (SRS). In 2026, Victoria’s public schools are only funded at 86% of their SRS. Total underfunding is estimated at $2.2 billion.
- Public schools are underfunded because of underfunding by both the Commonwealth and Victorian governments and because of “accounting tricks” used by the Victorian Government to defraud public schools
Public schools in Victoria have far fewer total resources than Catholic and Independent schools even though they enrol the vast majority of low income and Indigenous students. Overgenerous government funding for private schools is a key factor behind their resource advantage.
- Updated official funding figures show that the total income per student in Victorian public schools in 2024 was $19,150 compared to $31,005 per student in Independent schools and $22,432 in Catholic schools.
- Commonwealth and Victorian government funding increases for private schools has outstripped that for public schools. Between 2009 and 2024, combined government funding, adjusted for inflation, increased in Catholic schools by $3,406 per student and by $3,086 for Independent schools compared to $2,362 for public schools.
- The percentage increase for private schools was double that of public schools. Government funding for Catholic schools increased by 47% and by 57% for Independent schools compared to 25% for public schools.
Victoria is the national laggard in the funding of public schools. Unlike every other state and territory government, it refuses to sign a long-term funding agreement with the Commonwealth. Funding in 2026 remains stuck at the 2023 level of 86% of the SRS, the lowest of any state/territory except the Northern Territory.
- Progress towards fully funding public schools has been glacial under the Victorian Labor Government. It has only increased from 81% in 2014 to 86% in 2026, allowing for the accounting tricks introduced in the Morrison era funding agreements in 2019. The increase of only 5 percentage points over 12 years shows a disgraceful neglect of public schools.
- By contrast, Victorian Catholic schools are funded at 101% of their SRS in 2026 and Independent schools are funded at 102% of their SRS.
If Victoria is to live up to its claim to be the “education state” it must stop being the national laggard in funding public schools and become the national standard bearer in school funding. It should sign a new funding agreement with the Commonwealth Government to fully fund public schools by 2029. The agreement should provide for:
- The Victorian Government to increase its funding share for public schools to 75% of their SRS.
- The Victorian Government to immediately end the accounting tricks that defraud public schools.
- The Commonwealth to increase its funding share to 25%.