Cost of private education to rise as schools end COVID fee freeze

Key points

• Private schools have begun to announce fee increases of 4 to 10 per cent. 
• Most non-government schools did not raise fees significantly in 2021 and 2022.
• Schools say cuts to federal funding for private schools are partly to blame.

Victorian private schools have begun to lock in fee rises for next year of between 4 per cent and 10 per cent, citing rising expenses and cuts to Commonwealth funding as reasons for putting up their prices.

The looming fee increases, some of which will exceed the current inflation rate, will add to the cost of living for hundreds of thousands of Victorian families next year.

The rising cost of living is yet to reach school education.Credit:Arsineh Houspian

More than 36 per cent of Victorian students attend a Catholic or independent school.

Just a few Victorian non-government schools have announced their tuition fees for 2023, all of whom have confirmed their first significant increase since at least 2020.

Most private schools either froze or limited fee increases in the past two pandemic-affected years, and many offered fee relief to financially struggling families to avoid losing students to the public system.

Household inflation is at 6.1 per cent in Australia, but the rising cost of living is yet to reach school education. According to the Australian Bureau of Statistics, the cost of education did not rise in the June quarter.

Scotch College will increase its fees by 3.95 per cent next year, and other private schools are expected to follow suit.Credit:Joe Armao

Victorian non-government schools already charge the highest median fees in the country, according to analysis by education payments business Edstart.

Among the first to confirm a fee increase for 2023 is all boys’ school Scotch College, one of the state’s most expensive schools, with fees for students in years 9 to 12 set to rise 3.95 per cent, from $36,825 to $38,280 per year.

Boarding fees have also been hiked by 3.95 per cent, to $30,420.

A spokesperson said the school is facing higher inflationary pressures.

“Scotch has sought to strike a balance between keeping fee increases to a minimum whilst continuing to meet its day-to-day operating expenses and deliver on its educational commitment to students.”

The school said recent changes to the government funding formula for private schools had also contributed to its decision to increase fees.

“It should be noted that government funding to Scotch continues to decline in real terms. This is adding fee pressures for independent schools, including Scotch,” the spokesperson said.

Scotch also made a significant undisclosed payout to eductor Matthew Leeds, who had his appointment as college principal withdrawn early this year before he’d started in the role, following complaints from an anonymous whistleblower about alleged misconduct in a previous role at Geelong Grammar.

Leeds has denied the allegations and two separate investigations by Geelong Grammar and the Victorian Institute of Teaching did not substantiate the claims made against him.

Most public funding for non-government schools comes from the Commonwealth. The former Morrison government introduced a new formula that assesses funding based on parents’ taxable incomes and capacity to contribute to the ongoing costs of running the school. The old model was largely based on a school’s postcode.

Total funding to non-government schools will rise under the new model, though some schools will lose funding.

According to federal department of education data, Scotch College families have the third-highest average incomes of any school community in the state, behind only Melbourne Grammar and Lauriston Girls’ School.

Scotch’s “capacity to contribute” score increased between 2021 and 2022, reducing its Commonwealth funding.

East Preston Islamic College.

Low-fee schools that service far less advantaged communities are also set to raise fees next year.

East Preston Islamic College, one of the state’s least expensive private schools, has told families it will raise fees by 10 per cent next year, from $2500 to $2750 a year for senior students.

The college, despite being a fee-paying school, serves one of the most disadvantaged student cohorts in Melbourne’s inner north, and has one of the lowest capacity to contribute funding scores in the state.

By way of comparison, East Preston Islamic College received combined Commonwealth and state funding of $17,514 per student in 2020, and Scotch College received $4021 per student.

The Islamic College of Melbourne, in Tarneit, has also confirmed it will increase fees next year, by more than 8 per cent.

A VCE student will be charged fees of $3960 a year and an International Baccalaureate student will be charged $5200.

East Preston Islamic College and the Islamic College of Melbourne were contacted for comment but did not respond by deadline.

Most schools are yet to determine their fees for 2023.

The principal of one high-fee school, speaking anonymously because parents have not been informed yet, said an increase of 3 to 4 per cent was likely.

Bacchus Marsh Grammar principal Andrew Neal.Credit:Justin McManus

Andrew Neal, principal of Bacchus Marsh Grammar, one of Victoria’s largest schools, said 2023 fees had not been confirmed but would probably go up by 5 or 6 per cent, “maybe even a little bit higher”.

“We’re looking at the education CPI plus the amount we’ll have to increase because of the decrease in Commonwealth funding,” Neal said, estimating the school’s public funding would be cut by 1.5 per cent.

Neal said he was conscious that wages are not keeping pace with the cost of living and that a significant fee increase would be unaffordable for some families.

“The job at hand for the next couple of months is trying to make sure that we cut out any waste or excess to get to a point where we keep those fees down,” he said.

“If they get too high, there will be a significant number of families who are just not in a position to pay them.”

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