Public funding for primary and secondary education in Australia - Data and Analysis (1999-2034)

IBISWorld expects public funding for primary and secondary education to swell by 5.9% in 2026-27, to total $91.3 billion. The Better and Fairer Schools Agreement, which runs from 2025 to 2034, commits the Commonwealth to lift its contribution to government schools from 20% to 25% of the Schooling Resource Standard, with states and territories providing the remaining 75%. This additional funding has been ramping up each year and is a key contributor to the solid growth in 2026-27.Public funding for primary and secondary education has grown strongly over the five years through the end of 2026-27. Latest ABS figures show funding rose by 6.8% in 2024-25 to $80.7 billion, after growth of 7.8% in 2022-23 and 7.6% in 2023-24. Pay rises negotiated through teacher enterprise bargaining agreements, higher payments to non-government schools and cost-of-living adjustments have been major contributors, as elevated inflation pushed up the cost of delivering school education.Rising student numbers have also lifted funding, particularly in the non-government sector, where enrolments have grown faster than in government schools. Funding growth slowed to 2.0% in 2020-21, then rebounded to 9.3% in 2021-22. Needs-based loadings under the Schooling Resource Standard, which provide extra funding for students with disability, Indigenous students and students facing socio-educational disadvantage, have further increased funding requirements, with individual students able to attract more than one loading. Persistent teacher shortages have also prompted state governments to offer higher salaries and retention incentives, adding to operating expenses across government schools. Overall, IBISWorld expects public funding for primary and secondary education to grow at a compound annual rate of 7.0% over the five years through 2026-27.