Australian Greens' dissenting report

1.1It is the view of the Australian Greens that public education in Australia is significantly underfunded, exacerbating existing disparities in educational outcomes and hindering the potential of millions of students. The funding shortfall is both a matter of resource allocation and a set of broader systemic ideological choices made by both Coalition and Labor governments about the role of the state in supporting public education.

1.2The Chair's report alludes to the systemic underfunding of public schools, the inequities that result from this underfunding and the long-term negative consequences for students, teachers, and society at large. Crucially however, it fails to recognise that the Australian Government's (government) proposed levels of funding, and associated timelines will leave Australia's public schools underfunded for another decade.

1.3In a country with significant fiscal and state capacity such as Australia, the underfunding and abandonment of high quality and free public schools is a choice. This choice is not forced on governments, but it is wilfully made and has both short- and long-term negative consequences for Australia's young people and our society as a whole.

1.4What is the point of government, if not to provide public education for our kids to the very best of our ability?

The Shortfall in Public School Funding

1.5Australia's public schools have been chronically underfunded. Despite the Gonski Review recommendations, funding for public schools has consistently fallen short of the necessary levels required to ensure equitable educational outcomes.

1.6The Gonski Review, released in 2011, called for a new funding model that would better reflect the needs of disadvantaged students and provide a more equitable distribution of funding across the nation. However, over a decade after the review, successive governments have failed to implement either a model or a funding level that meets these needs.

The implementation of the Gonski reforms has not yet delivered the promised funding outcomes for government schools. Rather, the upshot of school funding changes since Gonski has seen government schools continue to be short-changed. This is undermining the capacity of government school systems and schools to improve the lives and educational outcomes of many young Australians who fail to have their needs adequately addressed at school.

Professor Stephen Lamb and Professor Pasi Sahlberg.[1]

1.7Under the current system and legislation, state and territory governments provide most of the public funding for government schools and the minority of public funding for non-government schools. Conversely, the Commonwealth provides 80 per cent of the public funding for non-government schools and the minority of public funding for government schools.

1.8This system is outlined thoroughly in the Report of the Independent Expert Panel's Review to Inform a Better and Fairer Education System, conducted in 2023–24:

Currently, government schools in all jurisdictions except the Australian Capital Territory (ACT) are, on average, yet to be funded to 100 per cent of the SRS. In contrast, non-government schools in all jurisdictions except the Northern Territory (NT) are, on average, funded at or above their full funding level. The SRS is an estimate of how much total public funding a school needs to meet its students’ educational needs. It is made up of a base amount and up to six needs-based loadings and calculated by the Commonwealth Department of Education for each school every year. In 2023, the Commonwealth funded at least 20 per cent of each government school’s SRS and 80 per cent of each non-government school’s SRS. The NSRA bilateral agreements set out the minimum funding contributions jurisdictions are required [to] make in order to receive Commonwealth funding.

Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System.[2]

1.9Chronic underfunding of public schools has persisted in all jurisdictions, with the exception of the Australian Capital Territory, with the contributions of both the Commonwealth and state and territory governments failing to reach 100 per cent of the Schooling Resource Standard (SRS). And the SRS is not an aspirational standard. It is the bare minimum of funding required to get at least 80 per cent of students above the minimum standard.

1.10The Report of the Independent Expert Panel's Review to Inform a Better and Fairer Education System demonstrated the shortfalls in the below graph.[3]

1.11The report stated unequivocally that 'all jurisdictions need to take action to deliver commitments on the Schooling Resource Standard (SRS) and ensure full funding of schools as soon as possible'.[4]

1.12While the government has pointed repeatedly to its deal with the Government of Western Australia (WA) as 'fully funding' public schools, the reality is that the ability for states and territories to count non-core education expenses toward their calculation of the SRS is leading to underfunding.

The signed WA agreement will not see WA schools receive greater than 96% of the Schools Resourcing Standard (SRS) – a minimum standard, whilst WA private schools will not fall below 100% SRS … It is essential that the Commonwealth government set a floor of 25% rather than 20%. Failure to do so threatens the life chances of countless Australian children and young people, undermines our hopes for an equitable and inclusive community and diminishes our prospects for productivity and prosperity as a nation.

State School Teachers' Union of Western Australia.[5]

1.13Due to allowable inclusions in the way states and territories can account for their contribution towards their share of the SRS, schools will be left underfunded despite the new deals signed. Minister Clare's statement that WA's public schools will be fully funded has been labelled as misleading by independent fact checkers.[6]

1.14Over several years, education experts have advocated for the government to increase the Commonwealth share of SRS for public schools to 25 per cent, to begin to bridge the funding gap. This has also been a longstanding position of the Australian Greens.

1.15The Centre for Future Work analysed the funding gap present for public schools, and potential increases to the Commonwealth contribution. When comparing the government's planned offering of 22.5 per cent of public school SRS to each state and territory (except the Northern Territory for which the offer is 40 per cent), to 25 per cent as called for by public education experts and advocates, the additional cost to the Commonwealth was found to be around $1.3 billion per annum.

It would require another $1.3 billion a year from the Commonwealth level to reach the full 25 per cent. So, obviously, in the federal government's grand fiscal picture, that is frankly trivial, and again I don’t see any fiscal rationale for not doing this.

Dr Jim Stanford, Centre for Future Work.[7]

Disparity in Funding for Public and Private Schools

1.16One of the most glaring problems with the current funding model is the significant disparity in funding between public and private schools.

1.17As stated in the Chair's report, 'all non-government schools are already either funded at the Schooling Resource Standard (SRS) level set by David Gonski, are on track to get there, or are funded above that level and are coming back down to it. However, most public schools are not'.[8]

1.18The result is a situation where public schools, which educate the majority of students—including the majority of students with complex needs and from lower socio-educational advantage backgrounds—are left underfunded. These schools often lack essential resources such as adequate support staff, modern infrastructure, and specialised programs for students with disabilities or learning difficulties.

1.19Submissions to the inquiry showed the disproportionate concentration of disadvantage in public schools, where private schools on average under-enrolled students with complex needs even from within the school's geographic community.

1.20The Expert Panel of the Review to Inform a Better and Fairer Education System noted that:

Between 2018 and 2022, over 38 per cent of schools with high concentrations of disadvantage experienced an increase in its concentration of disadvantage, meaning segregation in these schools had become more severe over time.

Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System.[9]

1.21It is clear that public schools are doing the heavy lifting and giving back to the community to a far greater extent in terms of educating disadvantaged students. The Report of the Independent Expert Panel's Review to Inform a Better and Fairer Education System illustrated the additional load on public schools in terms of concentrations of disadvantage in the below graph.[10]

1.22The continuing disadvantage concentration in public schools combined with chronic underfunding is causing students to miss out on the quality education that they are entitled to receive, and that we owe them as a society.

Australia's unequal schooling system is caused by the policy incoherence of over-funding private schools without expecting them to contribute to the Education Declaration’s goal of equity, while public schools remain underfunded, and bear the vast majority of the responsibility for equity. This policy incoherence will remain while the Federal Government does not fully fund public schools and a large minority of schools are able to avoid their educational responsibilities to their local communities.

Michael Sciffer, Opening Statement, 13 November 2024.[11]

1.23The underfunding of public schools has a direct and harmful impact on educational outcomes. The evidence is clear that increased funding has a positive effect on educational attainment, particularly for disadvantaged students. Research consistently shows that additional investment in schools, especially in low-income and high-need areas, leads to improved academic performance, better student wellbeing, and more effective teaching and learning.

1.24However, in many parts of Australia, public schools are operating with outdated facilities, under-resourced classrooms, and insufficient support for students with special needs. As a result, students in these schools are at a significant disadvantage when compared to their peers in wealthier private schools.

The Negative Impact on Teachers and School Staff

1.25The underfunding of public schools also has a significant impact on teachers and school staff. Teachers in underfunded schools are often required to work with large class sizes, outdated resources, and insufficient support staff. This not only makes their jobs more difficult but also contributes to higher levels of stress, burnout, and job dissatisfaction.

1.26The Australian Education Union found that:

National teacher shortages have now reached crisis levels. The Commonwealth's own modelling shows that demand for secondary teachers will exceed supply by around 4,100 by 2025… Addressing the crippling workloads of teachers and school leaders is essential to the sustainability of school systems across Australia. Without urgent action to fund public schools to the full SRS it will be impossible for public school systems to address the excessive working hours and workload intensification that teachers have long endured.

Australian Education Union.[12]

1.27Teachers are the backbone of the education system, and their ability to deliver quality education is heavily reliant on the resources available to them. Without adequate funding, teachers are forced to spend their own money on classroom materials, take on additional duties beyond their role, and face an increasingly challenging work environment. This has a detrimental effect on teacher retention, especially in high-need areas, where the lack of resources makes it harder to attract and retain educators.

Impact on Disadvantaged Students

1.28Underfunding disproportionately affects disadvantaged students, including those from low-income families, Indigenous backgrounds, rural or remote areas, and students with disabilities. These students require additional support, both in terms of financial resources and targeted interventions, to overcome the barriers they face in accessing a quality education. However, under the current funding model, these students are often left behind.

1.29Public schools often lack specialised staff, such as social workers, mental health professionals, and speech therapists, who can provide the necessary support to students. As a result, these students may struggle to achieve their full potential, with long-term consequences for their social mobility and life outcomes.

1.30The lack of funding for additional support services also contributes to the widening achievement gap between disadvantaged and more privileged students. The Australian Greens firmly believe that all students, regardless of their background, should have access to high-quality education and the support they need to succeed.

All sectors have a role to play in addressing educational equity in Australia. However, Government schools have a particularly important role. In 2022, low SES students comprised 31.4 per cent of Government school enrolments compared to 13.2 percent in non-Government schools. In 2023, Aboriginal and Torres Strait Islander students accounted for 8.3 percent of enrolments in Government schools compared to 3.3 per cent in non-Government schools.

In addition, schools with high concentrations of students who are socio-educationally disadvantaged are mostly in the government school sector. Around 14 per cent of all students attend a school with high proportions of socio-educationally disadvantaged students, with nearly all of these students attending government schools.

This concentration of disadvantaged students in certain schools is increasing, meaning that social segregation in these schools is becoming more severe. This concentration matters, as students from equity cohorts demonstrate, on average, less learning growth if they attend a school with a high concentration of disadvantage.

The Smith Family.[13]

Better and Fairer Schools (Funding and Reform) Bill

1.31The Better and Fairer Schools (Funding and Reform) Bill 2024 amends the Australian Education Act 2013 to give effect to elements of the government's intended bilateral schooling agreements with states and territories.

1.32Among the proposed changes is a proposal to change the Commonwealth share of public-school funding from a default cap of 20 per cent to a floor of 20 per cent, including a ratchet mechanism.

1.33The Australian Greens are supportive of a positive ratchet on the share of Commonwealth funding for government schools, however the legislated 20 per cent default is a Coalition relic, and what is astounding is that this bill does not guarantee more funding for public schools—it is reheated Coalition schools' policy.

1.34The government should take urgent action to address the funding inequities that exist in our education system. The government must increase its investment in public education to ensure that all schools, particularly those in disadvantaged areas, have access to the resources they need to deliver a high-quality education. This includes committing to full implementation of the Gonski funding model, with a specific focus on addressing the needs of disadvantaged students.

1.35The funding system for private schools must be reformed to ensure that public funds are prioritised towards public education. There are countless examples of extremely wealthy and high fee charging private schools receiving millions of dollars in federal funding while public schools struggle.[14] This is clearly not an equitable or fair system, and is contributing to generations of public school students receiving a sub-standard education.

1.36Adequate funding should be provided to ensure that teachers have access to the resources, professional development, and support they need to succeed in their roles. This includes reducing class sizes, increasing support staff, and ensuring that teachers are provided with the resources and support needed to meet the diverse needs of their students.

1.37Special attention must be given to the unique challenges faced by public schools in regional, rural and remote areas, including access to resources and support services. Additional funding should be directed to ensure that these schools and their students are adequately equipped and funded.

Conclusion

1.38The underfunding of public schools in Australia is a systemic issue that reflects the government's failure to prioritise education as a fundamental public good. Without adequate investment, public schools are unable to meet the needs of their students, leading to poor educational outcomes and widening inequalities in society.

… This is a bare minimum methodology. It was never meant to be aspirational … I don't think the SRS is fit for purpose, it's the current standard that we've got. I think it's appalling that we're allowing jurisdictions to claim 4% [of their SRS on non-core education spending] and when we celebrate these bilateral agreements in terms of 100% SRS well, that's clearly not the case.

… It's about our national priorities. We've got an $18 billion surplus projected. Close to $350 billion on a submarine deal. Where do our kids sit on that triage of priorities? I would argue that it's probably the most important nation building investment we could possibly make.

Andy Mison, Australian Secondary Principals Association.[15]

1.39The government should take immediate action to fully fund public schools and ensure that all students, regardless of their background, have access to the high-quality, public education they deserve.

1.40That the Australian Government fully fund public schools in 2025 by lifting the Commonwealth contribution to the Schooling Resource Standard to a minimum of 25 per cent.

1.41That the Australian Government remove the ability of States and Territories to count non-core education expenditure towards their Schooling Resource Standard contributions.

1.42That the Australian Government review funding arrangements for Australian schools, with particular regard for the adequacy of the Schooling Resource Standard in meeting the increasingly complex needs of school children across Australia.

Senator Penny Allman-Payne

Substitute Member

Senator for Queensland

Footnotes

[1]Professor Stephen Lamb and Professor Pasi Sahlberg, Submission 81, p. 2.

[2]Improving Outcomes for All: The Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System (2024), p. 75.

[3]Improving Outcomes for All: The Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System (2024), p. 75–76.

[4]Improving Outcomes for All: The Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System (2024), p. 77.

[5]The State School Teachers' Union of WA, Submission 11, p. 2.

[6]Tom Wark, 'Labor’s “fully funded” schools claim misleads', AAP Factcheck, 19 September 2024.

[7]Dr Jim Stanford, Economist and Director, Centre for Future Work, Proof Committee Hansard, 13November 2024, p. 11.

[8]Senate Education and Employment Legislation Committee, Better and Fairer Schools (Funding and Reform) Bill 2024, November 2024, p. 27.

[9]Improving Outcomes for All: The Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System (2024), p. 78.

[10]Improving Outcomes for All: The Report of the Independent Expert Panel’s Review to Inform a Better and Fairer Education System (2024), p. 75–76.

[11]Mr Michael Sciffer, opening statement given at a public hearing in Canberra on 13 November 2024.

[12]Australian Education Union, Submission 76, p. 19.

[13]The Smith Family, Submission 8, p. 4.

[14]Noel Towell, ‘Funding review ordered for Melbourne private school swimming in federal cash’, The Age, 29 September 2024.

[15]Mr Andy Mison, President and Executive Director, Australian Secondary Principals Association, Proof Committee Hansard, 13 November 2024, p. 27.