Read The Times Australia

Daily Bulletin

how much Australia spends on all levels of education

  • Written by: Daniel Edwards, Research Director, Australian Council for Educational Research

Australia spent A$111.8 billion on education in 2015, the most recent year for which the full dataset for all levels of education spending is available. A report from the Australian Council for Educational Research (ACER) released today shows this was an increase of nearly 80% from 2000 spending.

The federal government contributed A$47.2 billion (42%) of the overall funding. State, territory and local governments spent A$39.1 billion (35%). A further A$25.5 billion (23%) came from private sources.

The ACER report is the first to capture data on education spending at all levels of education – from early childhood to higher education – from all funding sources.

The analysis separates funding into three sources: federal government; state, territory and local governments; and private sources (the latter includes contributions by students in the form of fees, as well as contributions by private businesses and non-profit organisations).

The report also organises spending by education sector and levels, as defined in Australia.

Spending by education level

Education funding goes through a range of transfers between the three sources. At different points in the funding cycle, the contributions by government sources are transferred to other funding sources.

Read more: Explaining Australia's school funding debate: what's at stake

For instance, the federal government transferred A$14 billion of its initial education funding to private sources in 2015, mainly in the form of student loans. It transferred a further A$17.7 billion to state, territory and local governments which then fund schools and other areas of education.

how much Australia spends on all levels of education The final distribution of national education spending, after the transfers, was A$15.5 billion (14%) from the federal government, A$55.4 billion (49%) from state, territory and local governments and A$40.9 billion (37%) from private sources. The bulk of Australia’s education spending is directed to three levels of education: primary schools (27%), secondary schools (28%) and higher education (26%). The remaining 19% is spread between early childhood education, preschool, vocational education and training (VET) certificates, diplomas and advanced diplomas. Spending as a percentage of GDP In 2015, Australia spent A$102.4 billion on primary school and above. In real terms this spending has grown substantially since the beginning of the century and faster than student numbers. While spending on education increased by 79% between 2000 and 2015, the number of students in the Australian education system increased by only 22%. As a result, education spending per student (primary and above) increased by 46% over this period. Read more: Yes, education funding has increased – but not everyone benefits Australia’s spending on education as a proportion of GDP has also increased, from 5.1% in 2000 to 5.9% in 2015. This increase has largely been driven by private sources of funding, rather than government funds, indicating an increasing willingness by people to invest in their own (or their children’s) education. The share of private spending on education (primary and above) after transfers increased from 26% of total education spending in 2000 to 34% in 2015. The fastest period of growth in private spending has been since 2012. This coincided with the introduction of the higher education sector’s demand-driven funding arrangements (where universities didn’t have a cap on the number of bachelor degree students they could take). But it’s important to remember the government allocates a significant amount of its initial funding (before transfers) to student loans. Spending as a percentage of total government spending Government spending on education before transfers increased by 67% in real terms between 2000 and 2015. At the same time, total government spending rose by 65%. So, government spending on education before transfers, as a percentage of total government spending, was 1% higher in 2015 than in 2000. It peaked in 2010 due to the global financial crisis stimulus spending and fell in the interim. Australia’s government spends a relatively large proportion of its budget on education compared to other OECD countries. In total, government spending on education is 13.5%, which ranks Australia ninth of the 39 countries in the OECD reporting. But Australia’s total government spending for all services (including health, education, social protection, defence, public order and safety) is relatively low. Read more: FactCheck: is Australia below the international average when it comes to school funding? ACER’s analysis is drawn from annual expenditure data the Australian Government Department of Education submits for the joint UNESCO Institute for Statistics, OECD and Eurostat (UOE) data collection on education statistics – which the OECD releases as the Education at a Glance publication. The Education at a Glance reports are good for obtaining a snapshot of Australian education spending in relation to other OECD countries. But until now the data have not been organised in a useful way for further examining the Australian context. To fully appreciate the nuances of the data, we need increased expertise in the economics of education in Australia. More emphasis on this would enable long-term forecasting of the policy implications of Australia’s investment in education and would offer an additional objective voice at the education policy table.

Authors: Daniel Edwards, Research Director, Australian Council for Educational Research

Read more http://theconversation.com/three-charts-on-how-much-australia-spends-on-all-levels-of-education-120076

Business News

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand ma...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Bridge...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...