Funding and regulating schools in our federation is wildly duplicative and complicated.

I don’t wish to rain on the parade celebrating the path to full public education funding as the panacea, but it may be too early to relinquish our raincoats.

Despite promises of equity and excellence articulated in the Alice Springs (Mparntwe) Declaration and the commitments outlined in the Better and Fairer Schools Agreement (BFSA) 2025-2034, the growing socioeconomic segregation in our school system remains a reminder of policy shortfalls to date. Further, full funding will not land until 2034 and may be risked at any point by a change in government, as occurred following Tony Abbott’s election.

With Prime Minister Anthony Albanese now commanding a strong majority, there is an opportunity to lead the structural reform required to address systemic inequities and secure the future of Australian schooling.

Structural failure

For decades, Australia has tolerated, and at times actively exacerbated, the divide between public and private schools. This dual system has entrenched inequality in educational outcomes, with research by Professor Michele Bruniges and the Paul Ramsay Foundation showing increasing concentrations of disadvantage in many schools, predominantly public.

The evidence is clear: school segregation is a key driver of educational inequity in Australia. Research by Bonnor and Shepherd (2016) highlights how socioeconomic stratification, compounded by policies promoting school choice, has concentrated disadvantage in some schools while allowing others to remain selective and well-resourced. This stratification is not just a matter of fairness; it has tangible consequences for student outcomes, as studies consistently show that segregated systems perform worse overall than those that prioritise equity (OECD, 2019).

This is not a critique of the hardworking teachers and school leaders in the non-government school sectors, who share with public school educators the same commitment to their students and school communities. Many I know, like me, would welcome an end to the ideological and funding wars. It seems possible that productivity in the education sector as a whole would be improved through a more collaborative, less mutually suspicious environment.

Education Minister Jason Clare is aware of the scale of the problem, commenting at the recent Australian Secondary Principals’ Association National Summit that “we know Australia has one of the most segregated education systems in the world, not by the colour of your skin but by the size of your pay packet". He also indicated the long-term structural reforms required would be part of his work agenda should he be education minister once again, as he now is. This is a hopeful sign.

The BFSA does provide a welcome blueprint for modest reform, but it falls short of the ambitious, transformative change required to address the inequities driving school segregation. Despite the mandate provided by the Governments’ Improving Outcomes for All Review to Inform a Better and Fairer Education System (2023), it tinkers at the edges of a fundamentally flawed system, avoiding the politically sensitive task of confronting the advantages enjoyed by some schools and addressing the systemic causes of socioeconomic and cultural segregation.

The BFSA solution primarily focuses on financial levers and aspirational targets for attainment rather than structural change. This is a manifestation of the art of the feasible in political/public service terms. Perhaps only a cultural balance shift toward greater public awareness and support for equity rather than choice will arm the resolve for reform.

We do need to consider the concept of choice far more critically (and courageously) in terms of public policy. Only some families have a choice about where they send their children, depending on their income, where they live, and, for many, their cultural background.

Solutions?

Funding and regulating schools in our federation is wildly duplicative and complicated. But first steps might include:

1. Tying public funding to equity benchmarks: Public subsidies for non-government schools could be conditional on meeting benchmarks for enrolling, supporting and retaining disadvantaged students. This would ensure that public funds are used to promote equity rather than entrenching privilege.
2. Start working toward a common funding and regulatory framework: Iteratively remodel for a by-design framework for all publicly funded schools that will improve efficiency, level the playing field, standardise transparency and accountability for student outcomes.

Public opinion and the politics of structural change

Critics may argue that such reforms are politically unpalatable, particularly given the influence of private school advocates, resistance to compromise within the public sector, and the entrenched cultural preference for school choice. However, the Albanese Government has the political capital to introduce reforms that are necessary for the long-term health of Australia’s education system. Indeed, the Productivity Commission has repeatedly warned that poor educational outcomes among disadvantaged students undermine workforce participation, productivity and social cohesion. Structural reform is not just a moral imperative, it is an economic necessity.

Public opinion on school funding and education reform is complex. While Australians broadly support the principle of equitable education, there seems to be a deep cultural attachment to school choice and a lack of awareness about the extent of inequities in the current system. Many voters, particularly in middle-class suburban electorates key to Labor’s electoral success, are wary of reforms perceived as limiting their choices or disadvantaging their children (Reid, 2020).

Reforms framed as redistributive or targeting private schools could alienate these voters, undermining Labor’s support base. However, public opinion is not immutable. A targeted, careful communication campaign could raise awareness about the disparities between schools, highlighting the systemic disadvantage faced by many students, and offering a vision for a world class education for every Australian child. By framing reform as a matter of fairness, improvement, and economic necessity, the government could shift public sentiment and build momentum for change.

If the Albanese Government is to finally honour the equity goals of the Mparntwe Declaration and ensure that all young Australians have access to high-quality education, it must move beyond the BFSA and embrace a bold, transformative agenda.

The views expressed in this article may or may not reflect those of Pearls and Irritations.