New research has revealed Melbourne is Australia’s most expensive city for a government education.
The Futurity Investment Group in Education Index estimates the total cost of a government education in Melbourne will be $108,879 over 13 years for a child starting school in 2024, an increase of $6072 compared to 2023.
The total cost of a government education in the Victorian capital is 17 per cent above the national average ($92,710) and considerably more expensive than Canberra ($81,564) and Brisbane ($85,177), Australia’s most affordable cities for a government education.
Melbourne parents are forecast to spend three times more on outside tuition ($1431) than school fees ($387) in 2024, with electronic devices ($1074), musical instruments ($828) and textbooks ($357) all adding to the total cost of a government education.
The index discovered school fees make up just five per cent of the total cost of a government education for a child starting school in Melbourne in 2024, with 95 per cent spent on ancillary costs.
The Investment in Education Index found Melbourne is one of Australia’s most affordable cities for a Catholic education.
The total cost of a Catholic education in Melbourne is forecast to be $194,826 over 13 years for a child starting school in 2024, an increase of $10,460 compared to 2023.
The total cost of a Catholic education in the Victorian capital is $248 below the national average ($195,074) and considerably more affordable than Canberra ($208,871) and Brisbane ($204,197), Australia’s most expensive cities for a Catholic education.
Outside tuition ($3157) is forecast to be the most expensive component of a Catholic education for a child starting school in Melbourne in 2024, followed by school fees ($2118), electronic devices ($915) and musical instruments ($834).
The research found school fees will make up 20 per cent of the total cost of a Catholic education for a child starting school in Melbourne this year, with the remainder spent on ancillary costs.
The Futurity Investment Group Investment in Education Index also revealed Melbourne is Australia’s second most expensive city for an independent education.
It’s estimated the total cost of an independent education in Melbourne will be $324,559 over 13 years for a child starting school in 2024, a jump of $17,051 compared to 2023.
The total cost of an independent education in the Victorian capital is two per cent above the national average ($316,944) and second only to Sydney ($377,993) as Australia’s most expensive city for an independent education.
School fees ($11,183) are forecast to be the most expensive component of an independent education for a child starting school in Melbourne in 2024, well ahead of outside tuition ($1873), electronic devices ($1262) and musical instruments ($906).
The index revealed school fees will make up 61 per cent of the total cost of an independent education for a child starting school in Melbourne in 2024, with 39 per cent spent on ancillary costs.
The research also calculated the total cost of education in regional and remote areas for a child starting school in 2024 and found government, Catholic and independent education in non-metro Victorian towns and cities all align with national averages.
It’s estimated the total cost of a government education in regional and remote Victoria will be $79,678 over 13 year for a child starting school in 2024, an increase of $4461 compared 2023 and one per cent below the national average ($80,303).
Regional and remote Victorian parents are forecast to spend four times more on outside tuition ($1078) than school fees ($263) this year, with musical instruments ($722), electronic devices ($560) and school camps ($464) all adding to the total cost of a government education in non-metro Victoria.
The total cost of a Catholic education in regional and remote Victoria is forecast to be $174,784 over 13 years for a child starting school in 2024, a jump of $9522 compared to last year and one per cent above the national average ($172,981).
It’s estimated outside tuition ($2623) will be the most expensive component of a Catholic education for a child starting school in non-metro Victoria this year, ahead of school fees ($1355), electronic devices ($1124) and musical instruments ($703).
The Investment in Education Index forecasts the total cost of an independent education in regional and remote Victoria will be $219,926 over 13 years for a child starting school in 2024, an increase of $11,869 compared to 2023 and one per cent below the national average ($221,501).School fees ($3559) are forecast to be the most expensive component of an independent education for a child starting school in 2024 in non-metro Victoria, well ahead of outside tuition ($1873), electronic devices ($1143) and sports equipment ($1143).
Futurity Investment Group CEO, Sam Sondhi, says the costs associated with education are placing a substantial burden on many Australian families. “Households are already stretched by spiralling cost of living and interest rate pressures,” Mr Sondhi says.
“With less discretionary money to spend, it’s going to be a challenge for many families to pay for the total cost of education, which has jumped six per cent in the past year. It’s forecast school fees and a host of major school expenses including outside tuition, school camps, transport, uniforms, electronic devices and sports equipment will increase upwards of 14 per cent in the next five years, and by almost 30 per cent in the next decade. 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 Investment Group’s 2024 report The Cost of Education — How the Cost of Living Impacts Families Seeking Quality Education also revealed numerous other interesting insights.
Location is important to parents, but cost is a barrier
The greatest influence on parents when deciding on schools is location (35 per cent), followed by reputation (28 per cent) and cost (25 per cent). The greatest barriers that parents face when having to make their decision, however, are cost (33 per cent), followed by zoning (20 per cent). Positively, one in three parents (32 per cent) faced no barriers in being able to send their child to their preferred school.
Education considerations
Parents are faced with an array of decisions to make when thinking about educating their children. More than four in five parents (85 per cent) believe education is extremely or very important to their child thriving in life.
Parents believe in the importance of education in future proofing their child’s careers (76 per cent strongly/ somewhat agree).
Many parents (71 per cent) are also actively involved in helping their child plan for their future education and 70 per cent are optimistic and excited about their child’s education in the future.
Parents are, however, less likely to be actively involved in helping prepare their child financially for their future education (64 per cent) or agree they feel informed about the changes and trends shaping the future of education (53 per cent).
Source: The cost of education — How the cost of living impacts families seeking quality education
Top five influences for parents’ choice of School
Top five barriers for parents’ choice of school