Private school fees hiked 15 per cent amid cost squeeze

The increase will offset the rising expense of teacher salaries and operating costs, as the sector braces for a decline in the indexation of federal government school funding.

Independent schools are raising fees by as much as 15 per cent next year to offset the rising expense of teacher salaries and operating costs. Picture: Supplied

Independent schools are raising school fees by as much as 15 per cent next year to offset the rising expense of teacher salaries and operating costs, as the sector braces for a decline in the indexation on federal government school funding. 

The Schooling Resource Standard – an estimate of how much public funding a school needs to meet its students’ needs – funds schools to the tune of about $13,000 for primary students and $16,400 for secondary students, subject to an indexation rate of 4.2 per cent this year.

Education insiders anticipate a drop to about 3.8 per cent next year, with economic indicators from the mid-year economic update suggesting an indexation rate of 3.9 per cent. The official figure will not be released until August.

The predicted drop in funding comes as teacher salaries increase across the states and territories as the primary cost for independent schools, especially in NSW where the Minns government increased wages in the public system by between 4 and 20 per cent.

Among the schools to hike their fees were Catholic school St Kevin’s College in Melbourne by almost 15 per cent, Anglican school St Catherine’s in Sydney by 7.5 per cent and non-denominational Brisbane Grammar School by 8 per cent.

The increase comes as Queensland students received their QCE results on Friday and NSW students received their HSC results on Thursday, which saw selective public school North Sydney Boys High School push James Ruse Agricultural High School out of first place for the first time in 27 years, with Baulkham Hills High School ranking third.

Independent Schools Australia chief executive Graham Catt said school fees were taking up an increasing portion of families’ budgets amid the cost-of-living crisis, with schools facing growing costs for salaries, technology and wellbeing support.

“The costs of running a school have increased dramatically over the last few years, and salaries are the largest expense for most schools,” he said.

“There have been significant increases in government school staff salaries in many states and territories and independent schools are doing their best to keep pace with these increases.”

Independent Schools Australia chief executive Graham Catt. Picture: Supplied

National Catholic Education executive director Jacinta Collins.

National Catholic Education executive director Jacinta Collins said though some Catholic schools were absorbing the increasing costs themselves, many were forced to draw on parents for funding with the government contribution capped at 80 per cent.

“Catholic schools try to keep their school fees as affordable as possible as we recognise the extra burden it places on parents who are already dealing with increasing cost-of-living pressures,” she said.

“The government’s schooling resource standard only contributes up to 80 per cent of educational costs for Catholic schools.”

Christian Schools Australia director of public policy Mark Spencer said the organisation’s member schools had been increasing their fees between 5 and 10 per cent to compete with wages outside the sector.

“Like everything else school fees are rising, we always try to ensure we’re providing an affordable education and the largest component of cost is teacher salary,” he said. “In NSW … salaries have gone up in government schools and non-government schools have to follow suit.

“That puts significant cost pressure on schools. Some of those increases are 20 per cent and they know parents can’t afford that sort of school rise.”

Independent Education Union federal secretary Brad Hayes hit back at the suggestion that teacher salaries were responsible for the fee hike, saying that wages needed to increase across the nation to battle a “critical teacher shortage”.

“It’s essential that schools pay contemporary salaries, to attract and retain quality staff,” he said.

Federal Education Minister Jason Clare. Picture: NCA NewsWire/John Gass

A spokesman for Education Minister Jason Clare said the SRS was “indexed each year to reflect changes in prices and, therefore, the costs faced by schools”.

Among the nation’s most prominent private schools to raise their fees was St Kevin’s College in Melbourne, which increased its fees for year 12 students by almost 15 per cent to $25,625, Scotch College Melbourne by 5.5 per cent to $40,386 for year 9 to 12s and Melbourne’s Wesley College by 6.7 per cent to $40,053 for year 10 to 12s. St Kevin’s College said the increase was 7.3 per cent plus the additional state payroll tax, which the Victorian government will impose on private schools next year.

In Sydney, elite private girls school St Catherine’s increased its fees by 7.5 per cent to $42,000 for year 12 students and boys school The King’s School in Parramatta increased its fees by 5 per cent to $43,560.

Geelong Grammar – commonly considered Australia’s most expensive private school – wrote to parents in September to inform them of an 8 per cent fee hike, with salaries making up 64 per cent of the school’s cost. It will cost $84,240 to send a year 10 to 12 student to the prestigious boarding school that is famous for having King Charles as a student.