The Albanese Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) is “a missed opportunity” to strengthen the economy by properly investing in public schools, says Australia’s peak teachers’ union.
The midyear economic update, delivered by Treasurer Jim Chalmers on Wednesday, found that Australia’s federal budget is on-track for a deficit of $26.9bn this financial year and is not projected to return to balance until 2034-35, as domestic and international economic pressures take a toll on the economy.
Referring to figures from the Centre for Future Work at the Australia Institute, the Australian Education Union (AEU) said increasing the Commonwealth’s School Resourcing Standard (SRS) contribution to 25% from 20% could deliver GDP gains of up to $9.9bn annually after 20 years.
The analysis shows that the GDP boost would be driven by the creation of more than 17,000 new jobs, $2.7bn in annual GDP gains from expanded public school activity, social and fiscal savings of up to $3.5bn annually, and strengthened government revenue with a net fiscal gain of up to $3bn.
“Fully funding schools will reap long-term benefits to Australia’s economy, productivity, and our students’ futures,” AEU Federal President Correna Haythorpe said in a statement on Wednesday. “This is money the federal government is quite literally leaving on the table.”
In November, the government’s Better and Fairer Schools Agreement (BFSA) was passed in federal parliament, allowing the Commonwealth to deliver more funding to public schools and tie that funding to practical reforms to help students catch up, keep up and finish school.
However, NSW, Victoria, Queensland and South Australia are yet to finalise negotiations with the Federal Government on public school funding, holding out for a deal that raises the funding ‘floor’ to 25% instead of the 20% the government has legislated.
“This means they are stuck with a 20% Commonwealth contribution for the foreseeable future, unless the Albanese Government steps up with the full funding that was promised,” Haythorpe said.
“This will impact deeply on the resources that public schools have for next year and beyond and limit any capacity to meet the education reform agenda that is expected by governments.”
Haythorpe said the MYEFO represents “a wake-up call” to the Albanese Government.
“Fully funding public schools is not just the right thing to do for students, teachers, and families - it is an investment that strengthens the entire economy and it is a priority for the voting population of Australia.”