Public purse overpays private schools by $20m, Australian National Audit office reveals

Private schools are being overpaid in taxpayer funds and the federal government can’t guarantee $24 billion will go to schools that need it most, an alarming audit has revealed.

Elite private colleges and Catholic schools are being overpaid $20 million a year in taxpayer funds, an official audit reveals.

The Australian National Audit Office (ANAO) warned yesterday the Federal Government cannot guarantee it is handing $24 billion a year in taxpayer funding to schools that need money the most.

“The Department (of Education) does not yet effectively support the transparency of Australian Government funding allocation and does not analyse school funding allocation data to ensure that funding is distributed in accordance with need,’’ the audit report, tabled in federal parliament, states.

The audit also reveals a failure to ensure that extra taxpayer spending improves the quality of learning.

“There are limitations in the department’s ability to measure the impact of school funding on educational outcomes,’’ it states.

Elite private colleges and Catholic schools are being overpaid $20 million a year in taxpayer funds, an official audit reveals. Picture: Supplied

The audit exposes overpayments to one in three private schools, which would total $20 million a year nationally.

Its survey of 168 schools found “payment errors’’ in 53 schools, totalling $1.1 million in 2019.

Based on the sample, it estimated that private schools across Australia were overpaid $20 million.

The Federal Government will pour a record $24.4 billion into schools in 2021/22.

Public schools, which educate two-thirds of Australian children and get most of their funding from state and territory governments, will receive $9.7 billion in federal funding

Private schools, including Catholic and elite grammar schools charging parents up to $30,000 a year in tuition fees, will receive $14.7 billion.

The Department of Education told the ANAO auditors that it is “considering options for detailing’’ how much money is paid to schools or groups of schools.

Australian Education Union president Correna Haythorpe said the audit raised “serious concerns’’ about government oversight of school funding.

“There is a complete lack of accountability for private schools … and a failure of government to ensure that school funding is distributed in accordance with need,’’ she said.

“Despite this, the federal government continues to preference private schools.

“Public schools are experiencing booming enrolment, yet are not provided with the funding needed for every school to ensure that every child can access a high-quality education.’’.

Australian Education Union president Correna Haythorpe said the audit raised “serious concerns’’ about government oversight of school funding. Picture: AAP

Humanity Matters, a charity for disadvantaged youth, yesterday called for extra funding for state schools.

“Most of the young people we work with from low socio-economic backgrounds, living in public housing and from families under pressure with complex issues, tend to go to public schools,’’ chief executive Mary Malak said.

“These schools are so stretched … that those young people with issues at home and higher support needs tend to just fall out of the mainstream education system.

“This ends up costing the government more through increased levels of youth alcohol and drug use, criminal involvement … incarceration, increased rates of mental illness … and unemployment, flowing onto future family and domestic violence.

“All of society suffers when all our young people are not adequately supported to survive and thrive in the mainstream education system.’’

Federal Education Minister Alan Tudge has ordered his department to fix the problems.

“I am absolutely committed to transparency and have already instructed the Department to improve funding assurance and transparency in response to this report,” he said.

“As Minister, I’ve been very clear that I want to lift Australia’s educational standards, which have fallen despite massive increases in school funding.”

Originally published as Public purse overpays private schools by $20m, Australian National Audit office reveals