Disability funding for independent, Catholic schools triples in a decade to $2bn

Taxpayers are funding a $2bn private and Catholic school disability “rort”, with whistleblowers claiming teachers are being pressured to nominate students as disabled to win funding windfalls. See how much your school gets.

Federal taxpayers are funding a $2b private school disability “rort”, with whistle blowers revealing vulnerable students often do not get the benefit of funding they are allocated.

Dubbed “the new NDIS”, disability funding flowing to independent and Catholic schools around the nation has nearly doubled in the last four years alone and more than tripled in the past decade.

The national budget for “students with a disability” for all private schools has soared from $674m in 2014 to $1.2b in 2020, then hit $2b by 2023 — according to the latest figures available.

Despite schools insisting otherwise, insiders say teachers are under pressure to nominate students under lucrative disability categories worth up to $42,000 each, with the money flowing based on a simplistic tick-box form.

More than one in four students across the nation are now deemed to have a disability under the Nationally Consistent Collection of Data on Schoolchildren with a Disability (NCCD) which exists in addition to the NDIS.

Some wealthy private schools are set to reap $5m a year under the scheme by 2028, with some getting 9000 per cent more than a decade ago.

By 2028, Catholic schools in Victoria are estimated to receive half a billion dollars in a lump sum, with no school-based breakdown publicly available. Victorian government schools students also receive a lump sum from the NCCD – which was $481m in 2025 – in addition to state inclusion funding.

Autism Goals founder Pauline Aquilina, who advocates for students with Autism Spectrum Disorder, called it a “systemic failure”:

“Independent and Catholic schools receive millions in public disability funding with virtually no accountability or obligation to prove it’s reaching the students it’s meant to support,” she said.

“Without mandatory reporting, external audits and real consequences for misuse, we are failing students with disability — both morally and legally,” she said.

One whistle blower who has worked as a Learning Support Officer (LSO) in three Catholic schools estimated a year-six student on a disability plan worth $18,000 received support totalling $180 but was denied a scan reading pen by the school worth $399.

“If this was a private NDIS provider they would be shut down, investigated for fraud perhaps. It’s a total rort.”

Another LSO in a private primary school said generous funds “were being used by LSOs paid $22 an hour to babysit kids with behavioural issues”.

“There might be one kid with funding, but this is shared by six other kids who are unfunded,” she said.

Some wealthy private schools are set to reap $5m a year under the scheme by 2028. Picture: Supplied

“Parents aren’t told anything and even teachers don’t know who’s got the funding.”

Education Minister Jason Clare said new agreements with the states “include important accountability and transparency measures”.

“Any school found to be doing the wrong thing will face serious consequences,” he said.

Melbourne Montessori College’s funding has increased by 4000 per cent in the past decade, with the school saying this reflects increased enrolments and a wider definition of disability.

Principal Daniel Thomas said “every dollar of this funding is used for staff salaries” and parents are informed.

Wealthy private schools with annual tuition fees of more than $30,000 are receiving generous top-up funds through this scheme, with Geelong Grammar receiving $1.3m in 2025.

By 2028, Caulfield Grammar will get $4.9m, King David School $2.2m and Ivanhoe Grammar $2.7m.

Non-specialist schools claiming the highest amount per student with a disability in 2025 include Brighton Grammar ($11,070), Preshil ($10,455) and Ruyton School ($10,680).

Such schools have defended their allocation of NCCD funding.

Ivanhoe Grammar’s principal Gerard Foley said: “Every student on the count gets the associated supports from the funding they have derived from NCCD.”

Ruyton principal Kim Bence said “all government funding is subject to verification and audit”.

Graham Catt, CEO Independent Schools Australia, said: “schools are required to maintain detailed evidence of adjustments made for students, including documentation of consultation with parents and caregivers”.

Professor Elizabeth Labone, CEO of the Victorian Catholic Education Authority, said: “any parents with concerns about the level of support their child is receiving should raise these with their child’s school”.

Opposition education spokesman Jonno Duniam said the reports were “very concerning and demand the urgent attention of Education Minister Jason Clare.”

Originally published as Disability funding for independent, Catholic schools triples in a decade to $2bn