Australia’s school funding system is unfair and inefficient, entrenching inequality. The article calls for a new model where all schools are publicly funded without fees.

Australia now has one of the most socially segregated school systems. More than 80% of students from disadvantaged families attend public schools, compared with just 12% in Catholic schools and 8% in independent schools.

Thirty years later, the negative consequences of this model are clear. It is seriously undermining our public school system, dividing communities and costing far more than it needs to. It entrenches inequality, yet survives because every reform attempt meets fierce resistance.

Yet there was little difference in educational outcomes such as VCE results and NAPLAN scores. Admittedly, these are not the only desirable outcomes — Carey may offer more extra-curricular activities — but questions arise about the relative efficiency of the two schools, as well as whether parents are truly getting value for money.

Countries that perform better on international tests — such as Canada, the UK, Ireland and New Zealand — offer choice within a publicly funded system. Schools may have distinct features, but they cannot charge fees. This keeps performance gaps smaller and prevents segregation by class.

Australia could adopt a similar model. Both levels of government would develop a common formula, based on a revised SRS[Schooling Resource Standard], to fully fund all schools – government and non-government. Schools could retain their ethos but would not be allowed to charge fees. Most private schools already receive close to or above 80% of the SRS, so the additional cost would be less than many assume.

Such reform would not abolish choice; it would simply make choice affordable and equitable. As in the UK and Canada, only a small minority of schools would remain outside the system.