Australian Funding Diverged for Schools and Universities

In 2026, the Commonwealth directed $20.6 billion to private school subsidies compared to $8.4 billion for public universities.

Updated on Oct. 14, 2026 in Financial Aid

Isometric editorial illustration of two stone pillars of uneven height, representing structural funding disparities in Australian education. — Australian Commonwealth funding in 2026 reached $20.6 billion for private school subsidies, significantly outpacing the $8.4 billion allocated to public universities. AI Illustration. Upload story photo >

Live Poll

Should the government prioritize funding for private schools over public university education?

Data from 2026 reveals a significant funding gap in Australia, where the Commonwealth allocated $20.6 billion for private schools against $8.4 billion for the nation's 39 public universities. This discrepancy persists despite government targets aiming for 80 per cent of the workforce to hold a tertiary qualification by 2050.

Why it matters

The funding disparity highlights a shift in fiscal priorities that impacts university operational capacity and the financial burden placed on students. As university costs shift onto students, institutions have been forced to merge departments and cut courses to manage their budgets.

Average government funding stands at $15,262 per private school student compared to $10,038 per university student. Real per-student funding for private schools rose 24.8 per cent between 2013-14 and 2023-24, while university funding fell by 10 per cent.

The players

The Commonwealth

This is the federal government entity responsible for allocating subsidies to educational institutions across Australia.

The details

The Job Ready Graduates model introduced in 2021 increased the student share of university costs from 42 to 47 per cent, with students in some disciplines now covering 93 per cent of their course costs. Consequently, fees for journalism, communications, and society and culture courses have surged by 113 per cent.

Between 2013-14 and 2023-24, real per-student funding shifted significantly between sectors.
The Job Ready Graduates model was introduced in 2021.
In 2024, the Commonwealth contributed $1,236 per student for specific disciplines.
In 2026, the Commonwealth spent $20.6 billion on private school subsidies.
The Australian government targets 80 per cent workforce tertiary qualification by 2050.

Culture Shift

The implementation of the Job Ready Graduates funding model marks a fundamental shift in the government's role in supporting higher education. This trajectory moves away from broad public investment toward a user-pays system for students pursuing degrees in journalism, communications, and law.

The reduction in government base funding directly increases tuition fees for students, significantly impacting the cost of obtaining a degree in communications or law. This requires families and students to adjust their financial planning and budget more for rising course costs over the duration of their studies.

The takeaway

The widening gap between private school subsidies and university funding signals a period of heightened financial pressure on tertiary students. Students should carefully review their course fee structures, as the proportion of costs covered by individual tuition continues to climb.