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Victorian private schools received $95m in extra Commonwealth funding as public schools remain underfunded

Data shows 58 non-government schools above funding benchmark; Melbourne Grammar's families top median income list

By LineZotpaper
Published
Read Time2 min
Sources3 outlets
New federal data reveals that 58 Victorian non-government schools and education authorities received a combined $95 million above the nationally agreed funding benchmark in 2025, while public schools continue to battle for their share. Melbourne Grammar School, where median family income is $375,000 – the highest in the state – received $1.18 million more than its entitlement under the School Resource Standard (SRS).

The figures, released by the Federal Education Department in response to inquiries from Greens senator Penny Allman-Payne during budget estimates, show that at least 12 Victorian schools with median family incomes of $300,000 or more received between $134,000 and $1.5 million above their SRS allocation last year. Overall, 26 Melbourne schools had a median family income of at least $300,000.

The SRS is the estimate of how much public funding a school needs to meet its students' educational needs, established under the Gonski reforms. The Commonwealth now funds 80 per cent of the SRS for non-government schools, with states providing the remaining 20 per cent. The transition back to schools' actual entitlements is being phased in until 2029.

Melbourne Grammar School is expected to receive about $986,000 above the SRS this year, $40,000 more than previous Senate estimates indicated. Principal Philip Grutzner said the school was "keenly aware" of the funding changes and was planning ahead to reduce the impact on families. When asked whether this would lead to fee increases, Grutzner noted that salaries, inflation, ongoing operating costs, payroll tax, and fees all influence tuition.

"Our focus continues to be on offering an exceptional, holistic education focused on the whole child," Grutzner said.

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Analysis

Why This Matters

  • The additional $95 million flowing to already well-resourced private schools highlights persistent inequity in school funding, as many public schools remain below their SRS target.
  • The gradual phase-down of overfunding until 2029 means wealthier schools will continue to receive above-entitlement payments for several more years.
  • The data may intensify political debate over Commonwealth vs state funding responsibilities and the adequacy of the SRS model.

Background

The School Resource Standard (SRS) was introduced through the Gonski reforms to calculate the base funding each school needs based on student demographics. Non-government schools receive Commonwealth funding, while states fund government schools. The Commonwealth agreed to fund 80% of the SRS for private schools, with states covering 20%, but the transition to correct funding levels has been slow, with a 2029 deadline. The latest data shows many private schools are still receiving more than their entitlement.

Key Perspectives

Private schools (e.g., Melbourne Grammar): They acknowledge the funding changes and are planning ahead, but face cost pressures from salaries, inflation, and payroll tax, which may lead to fee increases for families. Public school advocates: They argue the ongoing overfunding of private schools comes at the expense of underfunded public schools, which serve a higher proportion of disadvantaged students. Critics/Skeptics: Some question whether the SRS benchmarks are accurate or whether the phase-down is too slow, allowing wealthier schools to benefit for years after the data is revealed.

What to Watch

  • Future Senate estimates inquiries and any updated funding data for 2026.
  • Fee announcements from overfunded private schools as they adjust to reduced Commonwealth contributions.
  • Political pressure for faster transition or changes to the SRS formula.

Sources

Zotpaper

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