As Australia enters a new school year, a submission from The Australia Institute highlights the growing disparity between public and private school funding, revealing that taxpayers are helping fund lavish private school facilities and the high salaries of private school principals.
In a submission to a New South Wales inquiry into private school profits, the Institute reveals that tax-deductible donations to private school building funds cost the Australian government millions of dollars annually in lost revenue. These funds often go toward extravagant facilities that only benefit wealthy school communities. Examples include:
- Cranbrook School in Sydney, which spent $125 million on a five-story sandstone building featuring an Olympic-sized pool and 267-seat theatre.
- The Scots College, which spent $29 million to renovate its library into a Scottish Baronial-style castle.
- The King's School paid $15 million for land near Lane Cove National Park for staff and student camps.
The report also exposes the massive pay gap between public and private school principals. While public school principals in NSW earn between $140,000 and $216,000, elite private school principals in Sydney can earn an average of $687,000 annually.
Key Recommendations:
- Private schools should be required to submit detailed financial reports to state parliament, including breakdowns of income and itemised expenditure, such as salaries for senior staff.
- Tax deductions for private school building funds should be removed, as recommended by the Productivity Commission.
- Private school facilities funded by tax-deductible donations should be made available to community groups outside of school hours.
- Public funding for private schools should be contingent upon full salary disclosure for senior executives.
Polling conducted by The Australia Institute shows overwhelming public support for these reforms. Four in five Australians agree that private school facilities should be accessible to community groups outside of school hours if taxpayers are funding their construction. Additionally, Australians are supportive of tax deductions for buildings that serve clear educational purposes, such as libraries (76%), classrooms (74%), and science labs (73%).
"Australia's growing inequality starts with the growing disparity between public and private schools," said Morgan Harrington, Research Manager at the Australia Institute.
"It is one thing for parents to choose a fancy school, but another for taxpayers to help foot the bill.
"The government's education system lets private schools pay their principals half-a-million dollars while public school teachers continue to work long hours in outdated classrooms.
"All Australians deserve access to affordable, quality education.
"The Productivity Commission's advice should be heeded. Removing tax deductions for private school amenities would free up funds for public schools that need them most."
