The recent federal government's decision to strip over $800 million from private schools across Australia has sparked intense debate and concern within the education sector. This move, which will affect over 1000 schools by 2029, has left many private schools in Victoria, in particular, facing significant financial challenges. Haileybury, Penleigh and Essendon Grammar, and the Ecumenical System of Schools, including Bacchus Marsh Grammar, Gippsland Grammar, and Geelong College, are among the hardest-hit institutions, with projected losses of $6.3 million, $5.9 million, and $35 million, respectively, by 2029. The Catholic Education Commission schools are also set to lose $63 million from 2026-2028. These cuts come on top of the controversial payroll tax, which has already significantly impacted the budgets of leading schools with fees exceeding $16,397 per student since 2024.
The financial strain on private schools is further exacerbated by the rising cost of living and the increasing fees for families. School fees across the country have been rising at a rate of five to seven percent annually, more than double the inflation rate. In 2026, the average cost of sending a child to a private secondary school was $11,000 per year, with fees reaching as high as $55,000. This situation is particularly challenging for families, as more than 40% of Australian secondary school students attend private schools.
The Independent Schools Australia (ISA) chief executive, Graham Catt, highlights the difficulty private schools face in absorbing sudden funding changes. He argues that schools have limited options, including cutting or deferring programs, reducing staffing, or increasing fees, all of which can significantly impact families already struggling with the cost of living. The ISA's research supports this, showing significant financial pressure and widespread household-budget changes to meet school costs.
The debate around these cuts is multifaceted. Shadow Education Minister Julian Leeser argues that non-government schools provide a significant burden relief to state and federal budgets. He believes that these changes will dispel the myth that non-government schools are elite or over-funded and stop the attack on families' choices for Catholic or independent education. However, Greens senator Penny Allman-Payne and the Australian Education Union's Correna Haythorpe present a contrasting view, emphasizing the inequitable nature of the nation's education funding system.
Penny Allman-Payne suggests that private schools are 'banking billions' on top of their fees while public teachers spend their own money on classroom supplies. She argues that every public school outside the ACT will remain underfunded for another decade. Correna Haythorpe echoes this sentiment, calling the nation's education funding system one of the most inequitable in the OECD. She highlights the stark contrast between private schools building 'literal castles' and public schools waiting years for basic amenities like air conditioning and working toilets.
The National Catholic Education Commission acknowledges that its schools have planned for the changes but emphasizes that the figures don't tell the full story. They argue that the real question is whether funding is keeping pace with rising costs, such as staff wages, student wellbeing, compliance, and resourcing. The Commission's concerns are shared by many in the education sector, who are calling for stable funding and an end to misleading statements that denigrate the entire independent sector.
In conclusion, the financial challenges faced by private schools due to these cuts and the rising cost of living are significant. The impact on families and the education sector as a whole is profound. As the debate continues, it is crucial to consider the broader implications and work towards a more equitable and sustainable education funding system that supports all students and schools in Australia.
