New research has revealed Melbourne is Australia’s most expensive city for a government education, while parents in Canberra pay the most for putting their children through a catholic education and Sydney for independent schooling.
The Futurity Investment Group Cost of Education Index estimates the total cost of a government education in the Victorian capital will be $102,807 over 13 years for a child starting school in 2023.
The total cost of a government education in Melbourne is 17 per cent above the national average ($87,528) and considerably more expensive than Canberra ($77,002) and Brisbane ($80,419).
Melbourne parents are forecast to spend three times more on outside tuition ($1,350) than school fees ($368) this year, with electronic devices ($1,013), musical instruments ($781), textbooks ($337) and school camps ($303) also adding to the total cost of a government education.
The index revealed school fees make up just 5 per cent of the total cost of a government education for a child starting school in Melbourne this year, with 95 per cent spent on ancillary costs.
Futurity Investment Group Executive Ms Kate Hill said the total cost of education has risen at nearly double the rate of inflation over the past decade.
“School fees, outside tuition, school camps, transport, uniforms, electronic devices and sports equipment are demanding a far greater share of the family budget than in the past,” she said.
“More than ever, the costs associated with education are placing more of a burden on Australian families, who are already stretched by the spiralling cost of living and rising interest rates. With less discretionary money to spend, it’s going to be a challenge for some families to pay for education.”
The cost of a catholic education
Meanwhile, the index found Canberra is Australia’s most expensive city for a catholic education, which is forecast to be $197,667 over 13 years for a child starting school in 2023. That’s 7 per cent above the national average ($184,545) and considerably more expensive than Sydney ($178,478) and Melbourne ($184,366).
It’s estimated Canberra parents will spend more on outside tuition ($2,979) than school fees ($2,781) this year, with electronic devices ($863), musical instruments ($787) and transport ($534) also adding to the total cost of a catholic education.
The research found school fees will make up 26 per cent of the total cost of a catholic education for a child starting school in Canberra this year, with 74 per cent spent on ancillary costs.
Independent education
The research also revealed Sydney is Australia’s most expensive city for an independent education at $357,931 over 13-years from 2023.
The cost in the NSW capital is 19 per cent or $57,698 above the national average ($300,233) and considerably more expensive than Brisbane ($262,531) and Perth ($213,889).
School fees ($8,920) are forecast to be the most expensive component of an independent education in Sydney, well ahead of electronic devices ($2,708) outside tuition ($1,767), musical instruments ($818) and school uniforms ($501).
The index discovered school fees will account for 52 per cent of the total cost of an independent education for a child starting school in Sydney in 2023, with 48 per cent spent on ancillary costs.
Regional and remote Australia
The Futurity Investment Group Cost of Education Index also calculated the total cost of education in regional and remote areas and found non-metro New South Wales is Australia’s most expensive region for a government education.
The index estimated this would be $82,823, 9 per cent above the national average ($75,795) and considerably more expensive than non-metro Queensland ($68,597) and non-metro Western Australia ($70,774).
Regional and remote New South Wales parents are forecast to spend almost 10 times more on outside tuition ($1,017) than school fees ($104) this year, with musical instruments ($1,880) electronic devices ($1,368), transport ($389) and school camps ($375) also adding to the total cost of a government education.
The research revealed non-metro Western Australia is the nation’s most expensive region for a Catholic education at $165,889 over 13 years, while non-metro South Australia is the country’s most expensive region for an independent education at $238,625.
Hill, from Futurity, said parents who have planned and saved for education will be in a better position in the long run and will be able to explore and afford choice when it comes to their children’s education.
“Futurity’s range of Education Bonds allow parents and grandparents to tax-effectively save and invest for education needs for children and grandchildren,” she said.
“Futurity leads the way in helping cover education expenses. Our Education Bonds offer a unique Education Tax Benefit which amounts to an additional $30 for every $70 withdrawn from the Bond’s earnings and it offers a range of tax-free avenues.”
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