Public funding for primary and secondary education in Australia - Data and Analysis (1999-2033)

IBISWorld expects that public funding for primary and secondary education will strengthen by 3.9% over 2025-26, to a total of $72.7 billion. The Federal Government's Better and Fairer Schools Agreement is expected to provide substantial federal funding to primary and secondary school education at public schools over the year. Additional funding as part of the Choice and Affordability Fund has further supported growth in the current year for non-government schools in particular. State and local government funding are also forecast to climb as the number of primary and secondary students continues to rise, contributing to growth in public funding during the year.Over the past few years, changes in government policies have driven increases in public funding for primary and secondary education. The Federal Government set out the National Plan for School Improvement, which estimated that an additional $14.5 billion would be spent on schools by the federal, state and territory governments by 2019 on top of previous commitments. In June 2017, the Federal Government amended the Australian Education Act 2013 to implement the Quality Schools package, which came into effect in January 2018 and is set to last until 2029. Funding for the Quality Schools package is based on the Schooling Resource Standard and is needs-based, allocating a base amount per student and additional funding in accordance with six loadings that reflect student needs. Total Commonwealth funding for primary and secondary schools per student is projected to increase 4.3% each year from 2018 through to 2029 under the package from a 2017 base. State and territory governments are also required to deliver increased funding under the Quality Schools package. More recently, the Federal Government has allocated funding towards school STEM learning improvements, including the online Mathematics Hub and Digital Technologies Hub. In the 2024-25 Budget, the Federal Government announced $34.6 million in funding over the next four years for this and other similar programs.The number of primary and secondary school students has expanded over the past five years as a result of strong population growth, resulting in increased public funding for school education. Further, under the National Youth Participation Requirement, it is compulsory for all students to participate in schooling until the end of year 10. This factor has ensured that student enrolment numbers have remained robust over time and contributed to stable growth in public funding over the period. Overall, IBISWorld forecasts that public funding for primary and secondary education will increase at a compound annual rate of 4.1% over the five years through 2025-26.