On the eve of Victoria’s pre‑election budget update, Opposition Leader Jess Wilson and the state’s Catholic schools have accused the Carroll government of concealing a decision to claw back more than $200 million previously earmarked for non‑government schools. The government denies it has cut funding to non‑government schools but agrees that, under a cabinet‑approved adjustment to the funding formula, they will receive less over the next four years than they would have under the previous arrangement.
Wilson wrote to Department of Treasury and Finance secretary Camille Kingston arguing that leaving the funding change out of the budget update would breach the state’s financial management laws and leave parents in the dark. “Victorians are entitled to know the decisions being made in their name, particularly when those decisions affect the funding of their children’s schools and require changes to existing legislation,” she wrote.
The government says the formula was changed to prevent non‑government schools from receiving more than they are entitled to under the Schooling Resource Standard, the needs‑based benchmark established under the Gonski reforms. “Catholic schools are fully funded under Gonski and will continue to be,” a Labor spokesperson said. “This change will ensure private schools don’t exceed 100 per cent of their SRS funding.”
The dispute follows the revelation last month that some of Victoria’s wealthiest private schools had received more government money than they were entitled to because of additional Commonwealth funding pumped into non‑government schools in 2025. Under the Gonski model, the Commonwealth provides 80 per cent of non‑government school funding needs and the states 20 per cent.
The Victorian Catholic Education Authority said its modelling indicated the changes would leave Victorian Catholic schools more than $200 million worse off over the next four years. Chief executive Elizabeth Labone said the current government planned to change longstanding funding arrangements for non-government schools if it won the election. “We are deeply concerned by reports that these cuts could be buried in the pre‑election budget update and not be transparently disclosed to Victorian families to help them make an informed decision about their vote at the state election,” she said.
Australian Education Union Victorian branch president Justin Mullaly signalled the argument would continue after polling day. “Despite the unhelpful cries of ‘poor me’ from private school representatives, the state government’s first responsibility is to ensure public schools are fully funded,” he said.
The funding dispute is politically sensitive for Labor: Premier Ben Carroll attended a Catholic high school, his electorate of Niddrie has a high concentration of Catholic households, and former education minister James Merlino chairs the Victorian Catholic Education Authority.
The government also clashed with the Coalition on Wednesday over the opposition’s key savings policy, a hiring freeze on non‑frontline public servants. Wilson’s costings, conducted by the Parliamentary Budget Office, project savings of $22 billion by 2037, while costings provided to the government by the PBO calculate the policy would improve the budget by only $3.27 billion over the life of the next government. The opposition attributes the discrepancy to a broader scope, saying the freeze would also cover three dozen public sector agencies such as the Suburban Rail Loop Authority and the Australian Grand Prix Corporation.
Analysis
Why This Matters
- The funding change directly affects families at Catholic and other non‑government schools, who could see reduced government contributions.
- The pre‑election budget update is meant to provide transparency before the November 28 vote; any perception of concealment could influence voters.
- The row also sharpens the tension between the government’s obligation to fully fund public schools and its support for the non‑government sector.
Background
The Schooling Resource Standard (SRS) is a needs‑based funding benchmark set under the Gonski reforms. Under the model, the Commonwealth provides 80 per cent of non‑government school funding and the states 20 per cent. Victoria has a separate law requiring the state to give non‑government schools 25 per cent of the funding that government schools receive. The government changed its funding formula after extra Commonwealth money in 2025 meant some private schools exceeded 100 per cent of their SRS entitlement.
Key Perspectives
- Opposition Leader Jess Wilson: Accuses the government of “secret cuts” and demands the funding change be included in the budget update for transparency.
- Victorian Catholic Education Authority: Says its modelling shows a $200 million loss over four years and calls for full disclosure before the election.
- Carroll government: Denies a cut, saying the adjustment ensures non‑government schools do not exceed 100 per cent of SRS and that every school is receiving more funding.
- Australian Education Union: Supports the government’s position, arguing public schools should be the priority.
- Coalition (Opposition): Maintains its hiring freeze will save $22 billion by 2037; the government’s different costing reflects a narrower scope.
What to Watch
- The content of Thursday’s pre‑election budget update and whether it includes the changed funding formula.
- The November 28 state election and whether the funding dispute influences voters in key marginal seats.
- Further costings and modelling from both sides as the campaign continues.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedThe Catholic schools and Opposition Leader Jess Wilson accuse the government of concealing a school-funding decision.The Age - Latest News: “Opposition Leader Jess Wilson and the state’s Catholic schools accusing the Carroll government of concealing a decision”
- SupportedThe decision involved clawing back more than $200 million earmarked for non-government schools.The Age - Latest News: “to claw back more than $200 million previously earmarked for non-government schools.”
- SupportedThe government denies cutting non-government school funding but agrees they will receive less over four years than under the previous arrangement.The Age - Latest News: “The government denies it has cut funding to non-government schools but agrees that under an adjusted funding formula approved by the cabinet, they will receive less over the next four years than they would have under the previous arrangement.”
- SupportedWilson wrote that Victorians are entitled to know decisions affecting school funding and requiring legislative changes.The Age - Latest News: ““Victorians are entitled to know the decisions being made in their name, particularly when those decisions affect the funding of their children’s schools and require changes to existing legislation,” she wrote.”
- SupportedA Labor spokesperson said Catholic schools are fully funded under Gonski and the change would prevent private schools exceeding 100 per cent of SRS funding.The Age - Latest News: ““Catholic schools are fully funded under Gonski and will continue to be,” a Labor spokesperson said. “Every school is receiving more funding. This change will ensure private schools don’t exceed 100 per cent of their SRS funding.””
- SupportedThe Victorian Catholic Education Authority’s modelling says the change would leave Catholic schools more than $200 million worse off over four years.The Age - Latest News: ““Our modelling indicates this would leave Victorian Catholic schools more than $200 million worse off over the next four years.””
- SupportedLabone expressed concern that the cuts could be buried in the pre-election budget update and not disclosed to families.The Age - Latest News: ““We are deeply concerned by reports that these cuts could be buried in the pre-election budget update and not be transparently disclosed to Victorian families to help them make an informed decision about their vote at the state election.””
- SupportedMullaly said the state government’s first responsibility is to ensure public schools are fully funded.The Age - Latest News: ““Despite the unhelpful cries of ‘poor me’ from private school representatives, the state government’s first responsibility is to ensure public schools are fully funded,” he said.”
- SupportedThe Commonwealth provides 80 per cent of non-government school funding needs and the states provide 20 per cent.The Age - Latest News: “Under the Gonski model, the Commonwealth provides 80 per cent of non-government school funding needs and the states provide 20 per cent.”
- SupportedBen Carroll attended a Catholic high school, and James Merlino chairs the Victorian Catholic Education Authority.The Age - Latest News: “Labor stalwart and former education minister James Merlino chairs the Victorian Catholic Education Authority. Premier Ben Carroll was educated at a Catholic high school”
- SupportedWilson’s costings project $22 billion in savings by 2037.The Age - Latest News: “Wilson’s costings, which were also conducted by the PBO, calculate that her policy will net savings of $5.5 billion before the next election and $22 billion by 2037.”
- SupportedThe PBO costings provided to the government project $3.27 billion in savings over the life of the next government.The Age - Latest News: “Costings provided to the government by the Parliamentary Budget Office calculate that Wilson’s proposed public service freeze will improve the budget by $19 billion by the end of June 2037 and by only $3.27 billion over the life of the next government.”