Victoria’s private schools raking in millions in federal funds

Victorian private schools are getting hundreds of millions of dollars in federal funds, despite charging huge fees and having vast capital reserves.

Victoria’s private schools are set to share $3.7bn in federal funds this financial year despite charging parents fees of up to $40,000 a year.

The federal payments equate to $10,000 per student a year on top of state funds of $2000 per student.

Budget documents show that over the next three years, the federal private school money pot will grow to $4.3bn.

The funds compare to $2.7bn in federal funds for government schools in 2024-25, which are primarily funded by the states.

Haileybury College received $33 million from the federal government in 2019.

Hundreds of millions in federal funds will go to Victoria’s richest schools, some of which claimed millions in JobKeeper and have vast capital reserves.

For instance, Haileybury, which had a net recurrent income of $124m and charges fees of up to $33,000 a year, received $33m from the federal government in 2019.

Other schools attracting generous federal payments include Penleigh and Essendon Grammar ($21m), Caulfield Grammar ($20m) and Wesley College ($17m) in 2019.

Federal funds flowing to private schools will increase by 6 per cent from 2021 to 2025. This is lower than the government school increase of 9 per cent over the same period, the budget papers state.

Wesley College received $17 million in 2019.

Michelle Green, chief executive of Independent Schools Victoria, said fee-paying parents save taxpayers about “$5.5bn a year, based on the additional funding that would be required if all independent school students attended government schools”.

Catholic Education Commission of Victoria executive director Jim Miles said the funding “supports families to choose a high-quality, faith-based education for their children, and also takes pressure off government schools”.

Meredith Peace, Australian Education Union Victorian president said Victorian public school students and teachers had been “neglected by the federal government”.

“The yawning funding gap between public and private schools is a disgrace. By 2023 Victorian public schools will only receive 90.4 per cent of the national school resource standard, while most private schools will be funded at or above 100 per cent,” she said.

Victorian Education Minister James Merlino said the state government had “repeatedly requested the federal government do its fair share and fund the final 5 per cent of the schooling resource standard for government schools. However, they have consistently refused to do so”.

David Hodgett, Opposition education spokesman, said any funding must lift standards.

Federal Education Minister Alan Tudge said the government was providing record funding for Australian schools. “Commonwealth funding for Victorian government schools has more than doubled since we came to office, compared to around 70 per cent growth for non-government schools,” he said. “Between now and 2029, Commonwealth funding for Victorian government schools will grow by 52 percent compared to around 42 per cent growth for non-government schools.”

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