
In November 2024, a nationwide survey revealed that the cost-of-living was the top concern of young Australians, prompting renewed calls for greater financial supports for families. Unfortunately, this crisis looks set to continue deep into 2025, with new research from The Smith Family showing 90% of parents and carers supported by the children’s charity fearing they cannot afford essential school items this year.
Currently, more than 1.2 million Australian children live in poverty, exacerbating risks to academic achievement and long-term wellbeing.
The charity’s annual Pulse Survey found families report dire concerns about children missing digital devices for schoolwork (54.8%), educational activities outside school (45.8%), home internet access (20.3%, up from 16.6% in 2023), uniforms/shoes (42.1%), and school excursions (38%, up from 32% in 2023).
“Poverty can have a profound and damaging effect on a child’s educational outcomes, with long-term consequences for their health, career and life prospects,” The Smith Family CEO, Doug Taylor, said. “It’s alarming to hear so many families are concerned about not being able to afford what children need for their learning this school year.”
With 9 in 10 jobs by 2026 requiring post-secondary qualifications (Jobs and Skills Commission), Taylor also highlighted the need for schools to focus on retention.
“With the right support at the right time, students can overcome obstacles... Education is one of the most powerful change agents for breaking the cycle of generational poverty,” he said.
“The support from partners such as Officeworks, who has contributed $9.3 million over 12 years, has been vital to assisting students... to fully participate in their education.”
Digital divide growing
A separate study by leading charity Good360 Australia, surveying 500 parents of school-aged children, found that 39% of parents struggle to afford essential education items, while 38% report greater difficulty affording school essentials this year compared to previous years.
Only 48% of families reported having reliable home internet for educational needs, with just 40% of students regularly accessing a laptop/computer for schoolwork.
Thirty per-cent of families highlighted digital tools (e.g., laptops, internet) as the top affordability challenge, surpassing uniforms (29%) and books/stationery (21%). A significant 43% of households cited digital tools as a major financial burden, rising to 50% for families with Upper Secondary students (16–18 years).
The survey also found that 16% of parents report stress or worry at home due to affordability challenges, while 10% said their child’s participation in education (e.g., homework, activities) has been negatively impacted. Worryingly, 9% noted declines in their child’s wellbeing, including confidence and social interaction.
“As the cost-of-living crisis continues, our research shows parents are making difficult sacrifices to support their children’s learning,” Alison Covington AM, Founder and Managing Director of Good360 Australia, said.
“Nobody should be forced to choose between essentials for their child’s education and basic family necessities such as food and clothing.”
Solutions for schools
Good360 is mobilising to bridge the digital divide, with demand for laptops and internet access surging 43% this financial year. Since 2023, the charity has received requests for 19,000+ laptops and digital items to support disadvantaged schools.
“Demand for essential digital tools like laptops and reliable internet access is surging as the cost-of-living crisis continues to impact Australian households,” Covington said. “Governments and businesses must step up through funding, donations, or partnerships – to ensure families can access the resources they need for their children’s education.”
In 2024, $1m worth of digital devices were distributed to communities from more than 30 corporate donors supporting Good360’s Digital Divide program. However, Covington said double the donor base is needed to meet demand.
“By redirecting surplus devices, we can help bridge the digital divide while also reducing waste. Businesses and retailers have a huge opportunity to support students' education, bridge education inequality and improve sustainability.”
Cost of schooling on the rise
Meanwhile, the cost of sending a child to school is on the rise, with Futurity Investment Group’s Cost of Education Index showing the total cost of a Government education in Sydney will be $150,323 over 13-years for a child starting school in 2025 – a 59% increase from 2024.
The Index shows Sydney is also Australia’s most expensive city for an Independent education ($411,108 over 13-years for a child starting school in 2025), a jump of 9% compared to last year.
Canberra is Australia’s most expensive city for a Catholic education ($215,633 over 13-years for a child starting school in 2025), a 3% increase compared to 2024.
Government (nationally)
- The total cost of a Government education will be $124,294 over 13-years for a child starting school this year.
- School fees make up just 8% of the total cost of a Government education for a child starting school this year, with 92% spent on ancillary costs.
Catholic (nationally)
- The total cost of a Catholic education will be $193,666 over 13-years for a child starting school this year.
- School fees make up 39% of the total cost of a Catholic education for a child starting school this year, with 61% spent on ancillary costs.
Independent (nationally)
- The total cost of an Independent education will be $350,158 over 13-years for a child starting school this year.
- School fees make up 56% of the total cost of an Independent education for a child starting school this year, with 44% spent on ancillary costs.
‘A substantial burden on families’
Futurity Investment Group’s Sarah McAdie said the costs associated with education are placing a substantial burden on many Australian families.
“Spiralling cost of living, rent and mortgage repayment pressures mean many households are under considerable pressure,” McAdie said. “With less discretionary money to spend, it is going to be a challenge for many families to pay for education, including school fees and voluntary contributions, which have all increased in the past year.”
Despite the growing costs, education remains a priority for parents, McAdie said.
“The research shows they are finding ways to reduce their spending where possible,” she said. “Ancillary spending is down compared to last year, with parents cutting back on outside tuition and coaching, musical instruments and electives.”
McAdie noted that a growing proportion of parents are also choosing to delay an education opportunity for their child.
“Parents who have planned and saved for education will be in a better position in the long run and will have the opportunity to explore and afford choice when it comes to their children’s education.”