Damon Mcknight
The Australian government provides funding for Catholic schools, which are non-government schools. The funding is distributed according to a needs-based funding arrangement, with the government estimating that the minimum cost to educate a child in an Australian school in 2024 is $13,557 for primary school and $17,036 for secondary school. This funding is based on the Schooling Resource Standard (SRS) and is indexed annually. The government calculates a school's capacity to contribute (CTC) with reference to a direct measure of income (DMI), with schools with the lowest CTC scores receiving 90% of the SRS and those with the highest CTC scores receiving 20%. While the government provides funding, Catholic schools are also funded by state governments and through school fees and private income sources such as donations and investments.
| Characteristics | Values |
|---|---|
| Catholic schools funding | The Australian government subsidizes Catholic schools |
| How Catholic schools are funded | Catholic schools, like all non-government schools, receive their primary government funding from the federal government. |
| Who funds Catholic schools in NSW | The Australian Government, the NSW Government, and parents and school communities share responsibility for funding the cost of education at Catholic schools in NSW. |
| How much funding Catholic schools in NSW will receive in 2024 | CSNSW will receive a forecast $3.65 billion in recurrent funding from the Commonwealth and NSW State governments. |
| How much money will be raised by NSW Catholic Schools System schools from school fees and other private income sources | $550 million from school fees and $100 million from other private income sources, including donations and investments |
| Minimum cost to educate a child in an Australian school in 2024 | $13,557 for a primary school student and $17,036 for a secondary school student |
| Who pays for a child's education at Catholic schools | The Australian Government Department of Education collects the DMI data from the Australian Taxation Office and other government agencies' records. |
| How is funding calculated | An average of DMI scores over three years determines a CTC score for each school. Schools with the lowest CTC scores get 90% of the SRS, while schools with the highest CTC scores get 20% of the SRS. |
| History of Catholic school funding | It wasn't until 1973 that an ongoing and systematic approach to federal funding of schools was established. The Whitlam-appointed Karmel Report introduced a "needs-based" school funding approach from the federal government. |
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What You'll Learn
The Australian Education Act 2013
The Act calculates a Schooling Resource Standard (SRS), which is an estimate of the total public funding a school needs to meet its students' educational needs. The funding is allocated to schools according to a Capacity to Contribute (CTC) score, which considers the parents' ability to contribute to their children's education. This is calculated using parental income data and is specific to each school. The base rate per student reflects each school's CTC score in relation to the SRS, with additional funding per student if the school is in a remote location or has low enrolment numbers. Loadings are also applied for factors such as English language proficiency, the socio-economic profile of school parents, Indigenous students, and students with disabilities.
The approved authorities for Catholic schools, like other non-government schools, receive their primary government funding from the federal government. However, there may not be a direct funding flow from the government to these schools. Most Catholic schools are systemic schools within the Catholic system across states and territories, and these systems decide on school funding. The Australian government's funding for Catholic schools began in the 1960s and 1970s when the federal government decided to support the struggling Catholic sector. The Whitlam-appointed Karmel Report of 1973 introduced a "needs-based" school funding approach, cementing the reliance on federal funding.
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Non-systemic Catholic schools
The Australian federal government is the primary source of public funding for non-government schools, which includes Catholic schools. Catholic schools, like all non-government schools, receive their primary government funding from the federal government. However, there is not necessarily a direct funding flow from the government to schools. Most Catholic schools are systemic schools, situated within the Catholic system across the states and territories, and these systems make their own decisions about school funding.
Catholic schools are divided into two categories: independent (private colleges run independently by religious congregations) and systemic (a network of parish primary and regional secondary schools administered by the Catholic Education Office in each diocese). Catholic independent schools are overseen by religious institutes, while Catholic systemic schools may be overseen by a Catholic parish, diocese, or archdiocese. The fees charged by Catholic systemic schools are relatively low compared to those of independent Catholic schools, due in part to the significant financial support provided by both the Commonwealth and state governments.
The Australian Education Act 2013 recognises that Approved Authorities are best placed to understand the individual needs of their students and schools. For non-government schools, the approved authority is the body corporate approved by the Minister for the school. These Approved Authorities are able to distribute the Commonwealth funding they receive among their schools according to their own needs-based funding arrangements.
Catholic education in Australia has a long history, with the first Catholic school established in 1821 in Parramatta. The Catholic Church has established primary, secondary, and tertiary educational institutions, and as of 2018, about one in five Australian students attended Catholic schools, making it the second-biggest provider of school-based education in Australia after government schools. The Catholic Church's commitment to education is evident in its establishment of a comprehensive alternative system of education following the withdrawal of state aid for church schools around 1880. This alternative system was largely staffed by dedicated members of religious congregations.
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Needs-based funding
The Australian government does subsidize Catholic schools, and this funding is distributed according to need. The Australian Education Act 2013 recognizes that Approved Authorities are best placed to understand the individual needs of their students and schools. These Approved Authorities can choose to redistribute the funding they receive among their schools according to their own needs-based funding arrangements.
The current approach to funding for Catholic schools in Australia began in the late 1960s and 1970s when the federal government decided to provide funding for the struggling Catholic sector. In 1973, the Whitlam-appointed Karmel Report introduced a "needs-based" school funding approach from the federal government. This provided much-needed funding for the Catholic system and cemented reliance on federal funding across the non-government sector.
Today, Catholic schools in Australia are primarily funded by the federal government, but this funding is distributed through Approved Authorities, which are typically the Catholic system authorities across the states and territories. These systems make their own decisions about school funding and how to distribute it among their member schools according to their needs.
The funding for non-government schools, including Catholic schools, is based on each school's Schooling Resource Standard (SRS) and Capacity to Contribute (CTC). The CTC measures the ability of parents or guardians to contribute to the cost of their children's education. Schools with lower CTC scores receive more funding, while wealthier communities receive less government funding. The SRS takes into account factors such as the number of students and the individual needs of the students and schools.
The National School Resourcing Board (NSRB) has also played a role in reviewing the funding arrangements for Catholic schools in Australia. The NSRB recommended moving to a direct measure of pre-tax income to estimate how much non-government school families can contribute to school fees, rather than relying on where families live. This change has been opposed by some Catholic education leaders, but it aims to provide a fairer way to estimate funding requirements.
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School fees
In New South Wales, for example, the CSNSW distributes funding to 11 dioceses based on a Needs-Based Funding Arrangement (NBFA). This arrangement ensures that funds are distributed equitably among schools, taking into account the individual needs of each school and its students. The CSNSW is committed to transparency and accountability in its management and use of government funding.
The Australian Government provides recurrent funding for Catholic schools, which is passed on to approved authorities like the CSNSW. This funding is based on the Schooling Resource Standard (SRS) or "base funding", which is specified by the Commonwealth Government. The SRS is indexed annually and varies depending on the student's year level, with a higher amount for secondary school students compared to primary school students.
In addition to government funding, Catholic schools also rely on school fees and other private income sources, such as donations and investments. In 2024, it is estimated that NSW Catholic Schools will raise $550 million from school fees and $100 million from other private sources. The fees charged by Catholic schools can vary significantly, with some schools charging much higher fees than others. This has led to concerns about the affordability of Catholic education for low- and middle-income families.
The funding arrangements for Catholic schools have been a subject of debate, with some arguing that the current model takes from the poor to give to the rich. The "capacity to contribute" (CtC) curve, used to determine the base amount of public funding for non-government primary schools, has been criticised for not being transparent enough. However, the Catholic sector has defended its commitment to transparency and needs-based funding.
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Funding cuts
The Australian government has cut funding to Catholic schools in the past. In 2018, the federal Education Minister, Simon Birmingham, pushed through funding reforms that would result in some wealthier schools losing public money. This was the first time in recent history that funding cuts had occurred. The Catholic sector, in particular, opposed these changes.
In response to the cuts, the Catholic Education Commission Victoria (CECV) claimed that some schools may have to increase their fees by as much as $5,000 per year. The federal Education Minister, Simon Birmingham, accused the Catholic sector of "exaggerating" claims of potential cuts and their impact. The Australian Education Union federal president, Correna Haythorpe, also criticized the funding cuts, stating that the system was "unfair" when Catholic schools received more state and federal government funding than public schools.
In September 2018, the Australian government announced a funding deal for Catholic and independent schools, providing an extra $4.6 billion over the next decade. This deal was a result of negotiations following the Catholic sector's opposition to the Coalition's 2017 schools funding changes. The deal introduced a new direct measure of parents' income to determine school funding and gave "overfunded" schools more time to transition to lower funding levels.
While the Australian government has cut funding to Catholic schools in the past, it is important to note that Catholic schools do not receive direct funding from the government. The government provides funding to Approved Authorities, which are responsible for distributing funds to schools within their system. These Approved Authorities can choose to redistribute funding according to their own needs-based funding arrangements.
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Frequently asked questions
Yes, the Australian government subsidizes Catholic schools. The federal government has been subsidizing Catholic schools since the 1960s and 1970s, when it stepped in to support a struggling Catholic sector.
Catholic schools, like other non-government schools, receive their primary government funding from the federal government. This funding is passed on to Approved Authorities, who then distribute the funds to individual schools. The amount of funding is determined by the Schooling Resource Standard (SRS) or "base funding", which is specified by the Commonwealth Government.
The government contributes about 80% of the cost of educating a child in the Catholic school system. In 2020, state and federal government funding for Catholic system schools in NSW amounted to $2.8 billion. In 2024, Catholic Schools NSW (CSNSW) is expected to receive $3.65 billion in recurrent funding from the Commonwealth and NSW State governments.
Funding is calculated using a needs-based arrangement, which takes into account the individual needs of schools and students. The government assesses the "capacity to contribute" (CtC) of each school based on the median income of parents, with schools having lower CtC scores receiving more funding.
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