Means test creates more uncertainty

Labor’s proposed changes to the school funding system will put immediate pressure on school fees in two ways, said Christopher Pyne, Shadow Minister for Education today.

“It is proposed that the new system will take into account the actual income of parents (their ‘capacity to pay’)  in other words, Labor will introduce means testing of parents who send their children to non-government schools.  The government will then reduce their support for those students accordingly” Mr Pyne said.

“Also, by cutting the indexation of current grants to non-government schools the government will be reducing assistance in real terms,” he said. 

“The only outcome can be that school fees will rise to meet the funding shortfall, if not, the quality of education will suffer or teachers will be laid off - or all three.

“There is now a clear choice in education – Labor will not guarantee indexation and will introduce a means test for non government schools while the Coalition can guarantee that government assistance to non-government schools will rise in real terms and will never introduce a means test,” Mr Pyne said.

February 21, 2012