Federal government cuts funding for over 50 Victorian private schools by 2029

Federal funding above the 80 per cent School Resource Standard threshold will be reduced for more than 50 Victorian private schools by 2029. The changes affect schools that currently receive amounts above the threshold, with the reductions phased in over three years.

Haileybury will lose $3.11 million above the threshold this year, Penleigh and Essendon Grammar School will lose $2.8 million, and Ivanhoe Grammar will lose $1.64 million. Melbourne Grammar School's amount above the threshold has already fallen from $1.18 million to $944,340.

Funding model details The School Resource Standard estimates the total public funds a school needs based on student socioeconomic background, school size, and location. Under the agreements, the federal government provides 80 per cent of the standard and the state government provides 20 per cent.

Catholic schools grouped under the funding model will receive $30.69 million above the threshold this year. Ecumenical Schools Australia, a network of 21 schools, will receive $14.54 million above the threshold.

School responses Year 12 fees at Haileybury have risen to $41,685 from $39,985 last year. Melbourne Grammar School has increased its Year 12 fees to $46,589 from $44,240 in 2025. A network executive said the funding step-down is one of several cost pressures, including changes to Capacity to Contribute scores, teacher wage increases, and payroll tax.

An independent schools association said private school students receive about $12,000 less per student in government funding than students in the government sector. A Victorian government spokesperson said more than 90 per cent of non-government schools are exempt from payroll tax from July 1 this year, noting that every government school pays the tax.