Sydney private school fees soar three times as fast as inflation

A sharp rise in parent demand for private schooling in Sydney has fuelled price rises which were triple the inflation rate between 1980 and 2021. See which schools went up the most.

Sydney’s top private schools should cost just a fraction of what they currently do if fees had increased in line with Reserve Bank inflation since 1980.

A sharp rise in parent demand for private schools whereby 40 per cent of high school students now go to private schools has fuelled price rises which are triple what inflation has been between 1980 and 2021.

That includes schools like The Scots College which charges parents of Year 12 boys $41,100 a year — but if fees had only kept pace with an inflation average of 3.8 per cent over the period, the annual tuition bill would actually be $12,418.

It is a similar story at Newington where fees have increased by 1292 per cent from just $2640 a year to $36,770.

Meanwhile Cranbrook in Bellevue Hill should cost $13,506 not $39,894, Abbotsleigh on the upper North Shore which cost parents $2388 in 1980 should cost parents just $10,823 — not the current price of $35,500.

Demographer Mark McCrindle said private school was a rarity for families in the 1980s but had become progressively more popular which had meant schools had to work harder to attract students.

“The proportion of students at an independent school is now at 40 per cent of all high school students,” he said.

The Scots College in Bellevue Hill charges parents of Year 12 boys $41,100 a year. Photo: Damian Shaw

“With the demand, it has become a situation where the parents are now shopping around.

“There is definitely a competitive aspect to this that schools feel, so schools are trying to show they have the right facilities, the right teachers and the right ATAR results to compete.”

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Australia Tutoring Association chief executive Mohan Dhall warned those private schools that are at risk of outpricing the traditional farming families and mums and dads who work extra jobs to be able to afford the fees.

“For many rich families it makes no difference how much they pay,” he said.

Cranbrook School in Bellevue Hill charges $39,894 a year. Picture: Richard Dobson

Australian Boarding Schools Association chief executive Richard Stokes said some of the biggest costs were thanks to ratio rules and better sleep quarters.

“Boarding schools used to use their senior students as almost staff members — 16 year-old and 17-year-old kids are just not ready for that and over time the schools have had to replace them with actual staff.”

He said facilities had also improved dramatically from the 1980s when at schools like Riverview students used to live on the veranda.

Abbotsleigh on the upper North Shore costs parents $35,500 a year. Picture: James Croucher

“Nowadays, no mother is going to put their boy or girl into a place like the old boarding school dormitory of 30 kids … now everyone is in smaller rooms.”

Association of Independent Schools of NSW chief executive Dr Geoff Newcombe said private schools were more popular than ever while the cost of running a school had grown.

“All school costs are driven largely by teacher salaries,” he said.

He noted information technology costs had also increased over the pandemic while schools shouldered 90 per cent of the capital cost required to build the additional classrooms to accommodate the demand.

Newington College fees have increased by 1292 per cent from just $2640 a year to $36,770. Picture: Supplied

“This saves the NSW Government several hundred million dollars per year in recurrent and capital costs,” he said.

Abbotsleigh’s director of finance Ross Bowden said salary costs since 1980 had risen by 5.5 per cent every year while new positions and programs had been added.

“Record enrolments (which are continuing) require significant investment in additional facilities, infrastructure and technology. These capital investments are funded entirely by the School,” he said.

“The range of co-curricular programs (and) activities has expanded significantly since the 1980s – parents/students expect a wide range of activities.”

Originally published as Sydney private school fees soar three times as fast as inflation