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Non-government educational alternatives are experiencing enormous growth, and a new study finds that private schools save taxpayers billions of dollars.

According to a recent study, private schools — or, more precisely, parents who send their children to independent and Catholic schools — save Australia’s education system $4.6 billion each year.

New Study: Private Schools Saving Governments $4.6 Billion

The analysis — conducted by Catholic Schools NSW and published last month — subverts the pervasive narrative that private schools deprive the government school system of much-needed funding.

It found that federal and state governments would be forced to spend an additional $4.6 billion of taxpayers’ money if all Australian students were enrolled in government schools.

However, while Australian governments provide funding for private schools, these schools are also allowed to charge tuition fees. This means that parents who choose to send their children to non-government schools pick up the difference between the cost of educating a child and the government contribution via taxpayer funds.

Catholic Schools NSW chief executive Dallas McInerney summarised the study’s findings: “means-tested funding for Catholic and Independent schools results in massive savings to taxpayers who are relieved from the full cost of educating Australia’s entire student population.”

“Australian taxpayers save billions of dollars each year when the government contributes to non-government schools.”

Huge Growth in Non-Government Alternatives: Private Schools, Homeschooling

The new report comes as increasing numbers of students are enrolled in non-government schools — something Mr McInerney says is evidence of “people voting with their feet”.

Earlier this year, the Australian Bureau of Statistics released data from last year showing that the surge in enrolments in independent and Catholic students has not stopped.

Over the half-decade leading up to 2023, enrolments in government schools increased by just 0.7%. In contrast, Catholic schools recorded a 4.8% increase in enrolments, with independent schools growing by a massive 14.1% (in terms of student enrolments).

According to Mr McInerney, this is a good thing.

“It’s a win for parental choice for education, it’s a win for the taxpayer, and it’s a win for the public education sector by lightening its load.”

Even more impressive than the rise in independent and Catholic schooling, however, has been the explosive growth of homeschooling since the start of the COVID-19 pandemic in 2019.

In 2019, registered homeschoolers comprised just under 22,000 students in Australia. However, between 2019 and 2023, that number has almost exactly doubled — with Queensland leading the way (with a 195% growth in registered homeschoolers), followed by New South Wales (110%), South Australia (79%) and Western Australia (73%).

Despite the growth in non-government schools — as well as other non-government alternatives like homeschooling — government schools continue to be responsible for educating around 64% of Australian students.

However, as the latest ABS data shows, parents are increasingly exercising their right to have their children educated in non-government schools — or even to teach them at home.

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Photo by Norma Mortenson.