How to fund schools

The fourth option in the Green paper, where the commonwealth government remains the dominant funder of schools, is the most controversial given the claim that it will force government schools parents to contribute financially – as non-government school parents are now compelled to do under the Gonski school funding model.

The reality, as stated yesterday by Christopher Pyne, the commonwealth minister for education, is that "the commonwealth government does not and will not support a means test for public education". It also should be noted that the Green Paper is simply a discussion paper and any new funding model post 2017 will have to be agreed to by the various levels of government and school jurisdictions.

Currently, school funding in Australia, in addition to being needs based, also acts as a de-facto type of voucher system where the money follows the child. State and commonwealth governments fund non-government school students and if a student moves from one school to another, so to does the funding.

While not mentioned in recent coverage of the Green Paper, when it is released one hopes that there will be some discussion of a voucher system. The cost to government of educating an Australian student, on average, is approximately $15,703, and one of the most effective ways to empower parents is to provide a school voucher.

The money follows the child to whatever school the parents chose, Catholic, independent or government, and research in America concludes that vouchers, especially among disadvantaged minority groups, is an effective way to promote parental engagement, raise standards and strengthen equity in education.

Dr Kevin Donnelly is a Senior Research Fellow at the Australian Catholic University and author of Dumbing Down.