The Prime Minister and Education Minister, Jason Clare, have claimed that the Abbott Government cut school funding by $30 billion. The Prime Minister repeated the claim in the first election debate with Opposition Leader, Peter Dutton. Dutton denied that school funding was cut. The claim is an issue in the election campaign a result of equivocal and contradictory statements by the Opposition on the new funding agreements between the Commonwealth and state/territory governments.
The Liberal Party plan to Get Australia Back on Track pledged to match dollar-for-dollar on the school funding agreements. In March, Shadow Education Minister, Sarah Henderson said “a future Coalition Government will match dollar for dollar all school funding agreements entered into with the states and territories”. However, the Leader of the Opposition recently committed only to honouring the funding outlined in the forward estimates of the Budget Papers which are for four years, not the nine years to 2034.
This has all the hallmarks of the Abbott/Pyne abandonment of the Gonski funding plan in 2013 after Abbott’s infamous pre-election “unity ticket” on school funding with the Rudd Government prior to the 2013 election which he immediately reneged on after the election. The Abbott Government refused to fund the last two years of the Gonski funding plan and released the states from their commitment to increase funding for public schools.
In the 2014-15 Budget, the Coalition Government changed the indexation of school expenditure from 4.7% provided in the Education Act 2013 to one linked to the Consumer Price Index which was projected by Treasury to be 2.5% over the next ten years. The change in the indexation rate was to apply from 2018. The change resulted in a reduction in projected expenditure over ten years to 2024-25. School funding in 2024-25 was estimated to be $6 billion less than previously projected as a result of the change and cumulative expected expenditure over 10 years was projected to be nearly $30 billion less than the original estimated.
The claim of a $30 billion cut to school funding by the Abott Government is approximately correct. The evidence suggests it was nearly $30 billion.
Fact 1
The 2014-15 Budget Papers showed that school expenditure in 2024-25 would be approximately $6 billion less than projected under the Gonski plan as a result of these changes.
Evidence
- Australian Government, Budget 2014-15, Budget Overview, p. 7. https://archive.budget.gov.au/2014-15/index.htm The estimate of $6 billion is obtained from the chart on school education.
- Dianne Heriot, Budget Review 2014-15, Parliamentary Library, May 2014, p. 73. “It appears also that there will be about $6.0 billion less in Australian Government funding for schools in 2024– 25”. https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22library/prspub/3221329%22
Fact 2
The 2014-15 Budget Papers stated that changes to schools and hospital expenditure would “achieve cumulative savings of over $80 billion by 2024-25”. About $30 billion or less of these savings were the result of the proposed changes for school funding.
Evidence
Australian Government, Budget 2014-15, Budget Overview, p. 7. A rough estimate of $30 billion is evident in the chart on school education https://archive.budget.gov.au/2014-15/index.htm
- Dianne Heriot, Budget Review 2014-15, Parliamentary Library, May 2014, p. 73. The review states that about one-third of the $80 billion in savings is for schools, that is, 27 billion. “It appears that about a third of these savings will be the result of the proposed changes to the indexation arrangements for school funding.” https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22library/prspub/3221329%22
- Senate Economics Committee, Budget Estimates 2014-15, Hansard, 4 June 2014, pp. 160,188. https://www.aph.gov.au/Parliamentary_Business/Senate_estimates/economicsctte/estimates/bud1415/index A Treasury official told the Estimates Committee that the savings in the schools budget would be “something less than $30 billion”.
- Senate Selection Committee on School Funding, Equity and excellence in Australian schools, July 2014, pp. xii, 109. https://www.aph.gov.au/select_schoolfunding The Report states that the savings would be approximately $30 billion.
- Justine Ferrari, $30bn curtain on Gonski’s grand vision, The Australian, 14 May 2014. 10 April 2025
10 April 2025
Trevor Cobbold National Convenor, SOS - Fighting for Equity in Education