This paper analyses trends in the funding of public and private schools. Government funding increases have heavily favoured Catholic and Independent schools over public schools since 2009 in nearly every state. Government funding increases are the major factor behind the resource advantage of private schools. Income per student in Independent and Catholic schools exceeds that of public schools.

The author argues that the bias towards the funding of private schools and the under-funding of public schools is a major factor behind the large achievement gaps between rich and poor in Australia. Despite enrolling the vast majority of students with the most learning challenges, public schools are massively under-funded. The new funding agreements being negotiated between the Commonwealth and state governments must ensure that public schools are genuinely fully funded by 2028.