‘Are private schools worth it?’: Mass exodus from public schools revealed during cost of living crisis

Australia’s cost of living crisis is out of control – but something truly bizarre is happening while so many of us are feeling the pinch.

ANALYSIS

Fees of $20,000 a year or more are proving to be no deterrent for parents as more and more Australian kids attend private schools.

A huge new release of Australian Bureau of Statistics data on the Aussie school system in 2024 shows that despite the cost of living crisis, families are finding room for pricey school fees.

The share of kids attending independent schools – also known as private schools – has risen dramatically.

As the next chart shows, it is up to almost 17 per cent, from just 13 per cent in 2006.

The share of kids attending private schools has skyrocketed, despite Australia's cost of living fiasco.

More and more kids are stuck in uncomfortable blazers and ties and those silly boater hats as parents desperately seek an education they hope will set their kids up for success.

Most of them are older kids, as the next chart shows.

Private schooling gets more attractive the deeper into their education kids get, and so Year 12 is the most popular grade for private school.

Year 12 is the most popular grade for private school.

But that’s not to say some kids don’t start earlier.

These days, an increasingly number of parents are getting their kids into private school for primary school.

More and more parents are forking out for a pricey public school education even though countless households are feeling the pinch. Picture: Glenn Hampson

As the next chart shows, the share of kids in independent school at Prep (or foundation or kindergarten or whatever your state calls it) has risen from under 10 per cent in 2006 to nearly 13 per cent last year.

That’s significant.

These days, more and more parents are getting their kids into private school for primary school.

Private schools are not equally popular all over the country, however.

As the next chart shows, South Australia is peculiarly enamoured with sending little kids to private schools.

They also have the highest share of Year 12s in private schools.

There's been a mass exodus from public schools.

ACT and Tasmania buck the trend set by the rest of the country. They have fewer Grade 12 students in private schools than grade 7s, thanks to their system of specialised state school for Year 11 and 12.

(In Tasmania, the fact you change school to attend Year 11 and 12 has been blamed for the low rates of school completion).

ACT and Tasmania buck the trend set by the rest of the country.

But are private schools worth it?

Some research shows students from those schools do very well. Other research points out that those exact students – whose parents are wealthy and focused on education – would do well anywhere. The academic picture is hard to grasp, but if you want your school to have an Olympic-sized swimming pool and a ski team, the choice is easy.

Sydney’s exclusive Newington College caused a kerfuffle by announcing it was going co-ed. Picture: NCA NewsWire/Gaye Gerard

Some Newington parents think the move to co-ed will see their sons become ‘second class citizens’. Picture: Richard Dobson

Private schools are controversial in many ways.

They take wealthy families out of the public system, depriving that system of resources. Then they also get federal funding – sometimes even if they already have an Olympic pool and a professional dance studio.

Some people hate private schools. Others swear by them. But there’s always some uproar over them.

The cost of living crisis is ‘no deterrent’ for thousands of Aussie parents. Picture: NewsWire/Max Mason-Hubers

The latest is Sydney’s Newington College, which is trying to go coeducational.

The school has historically only accepted boys.

Trying to change that is proving very tricky. But when you dive into the data, you see why a school might want to admit more female students – private school is more popular for girls than boys these days.

As the next chart shows, a higher share of boys attend government schools while more girls attend private.

A higher share of boys attend government schools while more girls attend private.

The reasons for this are mysterious, but it seems to be a growing trend. Perhaps it is related to the fact girls are more likely to attend university these days while boys are more likely to drop out of school.

The chart above is also a good reminder that despite the noise around private schools, the government system still does most of the heavy lifting. Catholic schools are important too.

The boater hats and blazers are very noticeable, but most people still attend state schools, where the fees are much, much lower than $20,000 a year.

Imagine what you could do with those funds if you saved them up over the life of your child.

Jason Murphy is an economist | @jasemurphy.bsky.social. He is the author of the book Incentivology

Originally published as ‘Are private schools worth it?’: Mass exodus from public schools revealed during cost of living crisis