Private schools to gain billions under new funding model

October 2018

The Catholic and independent school sectors have secured $4.5 billion in extra funding under major changes to the way non-government schools are funded.

The Federal Government will move from a widely criticised funding model that is based on census data, to a new model that uses parental tax data to calculate a school’s wealth.

The package, announced by Prime Minister Scott Morrison last week, represents a major win for the Catholic sector, which had revolted over funding changes announced in new Gonski legislation last year.

"For students, this will mean the opportunity to get the best results from school. For parents, it will mean that choice remains affordable," Mr Morrison said.

"For teachers, it will mean certainty of funding so they can get on with the job."

The new funding calculations will be phased in from 2020 in line with a recent review by the National School Resourcing Board.

The move towards a personal tax model will cost the Government $3.2 billion over the medium term.

On top of this, there is a new $1.2 billion "choice and affordability fund", which will prop up Catholic and low-fee independent schools that otherwise would have had to significantly raise fees to stay viable under the new funding system.

The Government said the $1.2 billion fund would also target schools in rural and remote locations, as well as underperforming schools.

The shift to an income test will mean the Catholic sector will be able to keep fees low across its system — even at schools located in wealthier suburbs.

Increases in funding to Catholic and low-fee independent schools make up the bulk of the extra $3.2 billion, but Catholic schools nationwide will actually be getting significantly more than that.