Report on Government Services 2023

Schooling aims to provide education for all young people. The structure of primary and secondary schooling is the same across all states and territories in Australia.

Compulsory school education

Entry to school education is compulsory for all children in all states and territories. The child age entry requirements are subject to specific legislation and varies by jurisdiction (ABS 2023). In 2022, minimum starting ages generally restrict enrolment to children aged between four-and-a-half and five years at the beginning of the year (ABS 2023). (See section 3, for more details.)

National mandatory requirements for schooling — as agreed in the National Youth Participation Requirement (NYPR) — came into effect through relevant State and Territory government legislation in 2010. Under the NYPR, all young people must participate in schooling until they complete year 10; and if they have completed year 10, in full time education, training or employment (or combination of these) until 17 years of age (COAG 2009). Some State and Territory governments have extended these requirements for their jurisdiction.

Type and level of school education

Schools are the institutions within which organised school education takes place (see the 'Explanatory material' tab for a definition of ‘school’) and are differentiated by the type and level of education they provide:

• Primary schools provide education from the first year of primary school — known as the ‘foundation year’ in the Australian Curriculum (see the 'Explanatory material' tab for the naming conventions used in each state and territory). In 2022, primary school education extends to year 6 across all states and territories in Australia. (Prior to 2022 primary school education was to year 7 in SA, and prior to 2015 was to year 7 in Queensland and WA.)
• Secondary schools provide education from the end of primary school to year 12 across all states and territories in Australia.
• Special schools provide education for students with one or more of the following characteristics before enrolment: mental or physical disability or impairment; slow learning ability; social or emotional problems; or in custody, on remand or in hospital (ABS 2023).

Affiliation, ownership and management

Schools can also be differentiated by their affiliation, ownership and management, which are presented as two broad categories:

• Government schools are owned and managed by State and Territory governments
• Non-government schools, including Catholic and independent schools, are owned and managed by non-government establishments.

State and Territory governments are responsible for ensuring the delivery and regulation of schooling to all children of school age in their jurisdiction. State and Territory governments provide most of the school education funding in Australia, which is administered under their own legislation. They determine curricula, register schools, regulate school activities and are directly responsible for the administration of government schools. They also provide support services used by both government and non-government schools. Non-government schools operate under conditions determined by State and Territory government registration authorities.

From 1 January 2018 the Australian Government introduced the Quality Schools Package replacing the Students First funding model which had been in effect since 1 January 2014. States and territories will also contribute funding under the Quality schools Package. More information on these funding arrangements can be found under Interpreting efficiency data on the 'Explanatory material' tab.

The Australian Government and State and Territory governments work together to progress and implement national policy priorities, such as: a national curriculum; national statistics and reporting; national testing; and, teaching standards (PM&C 2014).

Nationally in 2020-21, government recurrent expenditure on school education was $72.2 billion, a 1.0 per cent real increase from 2019-20 (table 4A.10). State and Territory governments provided the majority of funding (69.2 per cent) (figure 4.1).

Government schools accounted for $54.9 billion (76.0 per cent), with State and Territory governments the major funding source ($45.8 billion, or 83.4 per cent of government schools’ funding). Non-government schools accounted for $17.3 billion (24.0 per cent), with the Australian Government the major funding source ($13.1 billion, or 75.8 per cent of non-government schools funding) (table 4A.10).

The share of government funding to government and non-government schools varies across jurisdictions and over time according to jurisdictional approaches to funding schools (see 'Interpreting efficiency' data on the 'Explanatory material' tab) and is affected by the characteristics of school structures and the student body in each state and territory.

This Report presents expenditure related to government funding only, not to the full cost to the community of providing school education. Caution should be taken when comparing expenditure data for government and non-government schools, because governments provide only part of school funding. Governments provided 61.6 per cent of non-government school funding in 2021, with the remaining 38.4 per cent sourced from private fees and fund raising (Australian Government Department of Education).

Schools

In 2022, there were 9614 schools in Australia (6233 primary schools, 1444 secondary schools, 1417 combined schools, and 520 special schools) (table 4A.1). The majority of schools were government owned and managed (69.7 per cent) (table 4A.1).

Settlement patterns (population dispersion), the age distribution of the population and educational policy influence the distribution of schools by size and level in different jurisdictions. Data on school size and level are available from Schools Australia, 2022 (ABS 2023).

Student body

There were 4.0 million full time equivalent (FTE) students enrolled in school nationally in 2022 (table 4A.3). Whilst the majority of students are full time, there were 10 884 part time students in 2022 (predominantly in secondary schools) (ABS 2023).

• Government schools had 2.6 million FTE students enrolled (64.4 per cent of all FTE students). This proportion has decreased from a peak of 65.7 per cent in 2019 and 2018, and is the lowest in the last 10 years of data reported
• Non-government schools had 1.4 million FTE students enrolled (35.6 per cent of all FTE students)
• The proportion of FTE students enrolled in government schools is higher for primary schools (69.1 per cent) than secondary schools (58.5 per cent) (table 4A.3).

A higher proportion of FTE students were enrolled in primary schools (55.7 per cent) than in secondary schools (44.3 per cent) (table 4A.3). NT had the highest proportion of FTE students enrolled in primary school education (59.9 per cent).

The enrolment rate is close to 100 per cent for Australian children aged 15 years (consistent with requirements under the NYPR), but decreases as ages increase. Nationally in 2022, the school participation rate was 97.3 per cent for Australian children aged 15 years (down from 98.1 per cent in 2021). In 2022, the rate decreased to 90.7 per cent of 16 year olds and 80.4 per cent of 17 year olds. Data for 15–19 year olds by single year of age and totals are in table 4A.4.

Nationally, government schools had a higher proportion of students from selected equity groups than non-government schools, including for:

• Aboriginal and Torres Strait Islander students — 8.1 per cent of government school students and 3.1 per cent of non-government school students in 2022 (table 4A.5)
• students from a low socio-educational background — 31.3 per cent of government school students and 12.8 per cent of non-government school students in 2021 (table 4A.6)
• geographically remote and very remote students — 2.3 per cent of government school students and 0.8 per cent of non-government school students in 2021 (table 4A.8).

For students with disability, 22.6 per cent, 20.0 per cent, and 20.3 per cent of students at government, Catholic, and independent schools respectively, required an education adjustment due to disability in 2021 (table 4A.7). Data by level of adjustment are in table 4A.7.

School and Vocational Education and Training (VET)

School-aged people may participate in VET by either participating in ‘VET in Schools’, or (see section 5) remain engaged in education through a Registered Training Organisation. Nationally in 2021, there were 251 200 VET in Schools students (NCVER 2022). Overall, 404 600 people aged 15–19 years successfully completed at least one unit of competency as part of a VET qualification at the Australian Qualifications Framework (AQF) Certificate II level or above (at a school or Registered Training Organisation) (table 4A.9).

‘Attendance by selected equity group’ is an indicator of governments’ objective for school education services to be provided in an equitable manner.

‘Attendance by selected equity group’ compares the attendance rate of those in the selected equity group (Aboriginal and Torres Strait Islander students, students in remote/very remote areas) with the attendance rate of those outside the selected equity group (non‑Indigenous students, students in major cities and regional areas).

Similar rates of attendance for those within and outside the selected equity groups indicates equity of access.

The student attendance rate is the number of actual full time equivalent student days attended by full time students as a percentage of the total number of possible student attendance days attended over the period.

School attendance in Semester 1 2022 has declined due to the impact of the COVID-19 Omicron variant and high influenza season outbreaks and floods in certain regions experienced across Australia at that time.

Nationally in 2022, attendance rates across years 1–10 decreased as remoteness increased, with the decrease greater for Aboriginal and Torres Strait Islander students than for non-Indigenous students (figure 4.2a). This pattern was similar for government and non-government schools (table 4A.21).

Nationally in 2022, non‑Indigenous students in all schools had higher attendance rates than Aboriginal and Torres Strait Islander students across all year levels in all jurisdictions. This pattern was similar for government and non‑government schools (figure 4.2b and tables 4A.18–21).

The student attendance level is the proportion of full time students whose attendance rate is greater than or equal to 90 per cent over the period. Analysis of the attendance level can highlight ‘at risk’ populations (where a large proportion of individuals have had low attendance over the school year). Data on the student attendance level by Indigenous status and remoteness are in tables 4A.22–24.

‘Attendance’ is an indicator of governments’ objective that school education services promotes student participation.

‘Attendance’ is defined by the student attendance rate — the number of actual full time equivalent student days attended by full time students as a percentage of the total number of possible student attendance days attended over the period.

Higher or increasing rates of attendance are desirable. Poor attendance has been related to poor student outcomes, particularly once patterns of non‑attendance are established (Hancock et al. 2013).

School attendance in Semester 1 2022 has declined due to the impact of the COVID-19 Omicron variant and high influenza season outbreaks and floods experienced in certain regions across Australia at that time.

Nationally in 2022, across all schools attendance rates decreased from year 7 to year 10 — from 87.3 per cent to 82.9 per cent (table 4A.20). For years 7–10 combined, attendance rates are higher at non‑government schools (87.5 per cent) than government schools (82.7 per cent) (tables 4A.18-19).

Nationally in 2022, the attendance rate for all school students across year levels 1–6 was 87.8 per cent (figure 4.3). The year 1–6 attendance rates decreased since 2015 with a slightly over one percentage point decrease occurring to 2021 and a 4.5 percentage point fall occurring between 2021 and 2022 (table 4A.20).

‘Student engagement’ is an indicator of governments’ objective that school education services engage all students.

‘Student engagement’ is defined as encompassing the following three dimensions:

• behavioural engagement — which may be measured by identifiable behaviours of engagement, such as school attendance, attainment and retention
• emotional engagement — which may be measured by students’ attitudes to learning and school
• cognitive engagement — which may be measured by students’ perception of intellectual challenge, effort or interest and motivation (Fredricks, Blumenfeld, and Paris 2004).

It is measured using data from the Programme for International Student Assessment (PISA) — a triennial assessment of 15 year‑old students conducted by the Organisation for Economic Cooperation and Development (OECD) that also collects student and school background contextual data. PISA collects information on one aspect of emotional engagement — students’ sense of belonging at school. Students’ level of agreement to six statements are combined to construct a Sense of Belonging at School Index (table 4A.25).

Higher or increasing scores on the Index illustrate a greater sense of belonging at school, which is desirable. The index is standardised to have a mean of 0 across OECD countries. Higher values of the index indicate a greater sense of belonging at school than the OECD average and lower values indicate a lesser sense of belonging at school than the OECD average.

These data should be interpreted with caution, as they are limited to one aspect of emotional engagement and captured for students at a single age (students aged 15 years).

National data are not currently agreed to report against behavioural or cognitive engagement. However contextual information is provided on State and Territory government student engagement surveys, where they have been conducted (table 4.1). These surveys collect information from students across the behavioural, emotional, and cognitive domains of engagement. In addition, some aspects of behavioural engagement are captured via the attendance, retention and attainment indicators.

Nationally in 2018, the proportion of 15 year old students that agreed/disagreed with the following statements was:

• I make friends easily at school (agree) — 75.6 (± 1.0) per cent
• I feel like I belong at school (agree) — 68.2 (± 1.0) per cent
• Other students seem to like me (agree) — 85.3 (± 0.9) per cent
• I feel like an outsider (or left out of things) at school (disagree) — 72.9 (± 1.0) per cent
• I feel awkward and out of place at my school (disagree) — 75.2 (± 0.9) per cent
• I feel lonely at school (disagree) — 80.7 (± 0.9) per cent (figure 4.4).

From these responses, the Sense of Belonging at School Index for Australian students aged 15 years was ‑0.19 (± 0.02) (figure 4.4). The score, which is below the 2018 OECD average, varied across jurisdictions. National data on the Sense of Belonging at School Index, by selected equity group (sex, Indigenous status, geolocation, and socioeconomic background) are included in table 4A.26.

Sense of belonging at school has been measured in four cycles of PISA: in 2003, 2012, 2015 and 2018. Nationally, over this 12 year period, students’ agreement/disagreement with the Sense of Belonging Index statements have declined (ACER 2018, table 4A.25).

Table 4.1 School student engagement survey results

Source: State and Territory governments (unpublished).

‘Retention’ to the final years of schooling is an indicator of governments’ objective that the school education system aims to engage all students and promote student participation.

‘Retention’ (apparent retention rate) is defined as the number of full time school students in year 10 that continue to year 12.

The term ‘apparent’ is used because the measures are derived from total numbers of students in each of year 10 and year 12, not by tracking the retention of individual students. Uncapped rates (rates that can be greater than 100 per cent) are reported for time series analysis. Care needs to be taken in interpreting the measures as they do not take account of factors such as:

• students repeating a year of education or returning to education after a period of absence
• movement or migration of students between school sectors, between states/territories and between countries
• the impact of full fee paying overseas students.

These factors may lead to uncapped apparent retention rates that exceed 100 per cent.

This indicator does not include part time or ungraded students (which has implications for the interpretation of results for all jurisdictions) or provide information on students who pursue year 12 (or equivalent qualifications) through non‑school pathways.

Apparent retention rates are affected by factors that vary across jurisdictions. For this reason, variations in apparent retention rates over time within jurisdictions may be more useful than comparisons across jurisdictions.

A higher or increasing rate is desirable as it suggests that a larger proportion of students are continuing in school, which may result in improved educational outcomes.

Nationally in 2022, the apparent retention rate from year 10 to year 12 for full time students was 79.0 per cent, the lowest in the last 10 years of data reported. The rate was higher for non-government schools (87.2 per cent) compared to government schools (73.5 per cent). This pattern was similar for both Aboriginal and Torres Strait Islander students and non-Indigenous students (figure 4.5).

Consistent with the NYPR mandatory requirement that all young people participate in schooling until they complete year 10, the apparent retention rate for all schools from the commencement of secondary school (at year 7 or 8) to year 10 has remained above 97 per cent in all jurisdictions (other than the NT) since 2013. Nationally, the retention rate for Aboriginal and Torres Strait Islander students was over 97 per cent in 2022, but lower than that of non‑Indigenous students (table 4A.27).

‘Quality teaching’ is an indicator of governments’ objective that school education delivers high quality teaching of a world‑class curriculum. A good quality curriculum provides the structure for the provision of quality learning (UNESCO‑IBE 2016), while teachers are the single most important ‘in‑school’ influence on student achievement (Hattie 2009). Teacher quality can influence student educational outcomes both directly and indirectly, by fostering a positive, inclusive and safe learning environment (Boon 2011).

‘Quality teaching’ is defined in relation to the teaching environment, including the quality of the curriculum and the effectiveness of the teachers. Teachers are considered effective where they:

• create an environment where all students are expected to learn successfully
• have a deep understanding of the curriculum and subjects they teach
• have a repertoire of effective teaching strategies to meet student needs
• direct their teaching to student needs and readiness
• provide continuous feedback to students about their learning
• reflect on their own practice and strive for continuous improvement (PC 2012).

This indicator may be measured in future by student responses to survey questions on their perceptions of the teaching environment including the curriculum. High or increasing proportions of students indicating positive responses to the teaching environment are desirable.

Data are not yet available for reporting against this indicator.

‘Recurrent expenditure per student’ is an indicator of governments’ objective to provide school education services in an efficient manner.

‘Recurrent expenditure per student’ is defined as total government recurrent expenditure per FTE student, reported for government schools and for non‑government schools. Government recurrent expenditure per FTE student includes estimates for the User Cost of Capital (UCC) for government schools (see 'Interpreting efficiency' data on the 'Explanatory material' tab). UCC is not included for non‑government schools.

FTE student numbers (table 4A.3) are drawn from the ABS publication Schools Australia 2021 (ABS 2022) and averaged over two calendar years to match the financial year expenditure data. From 2018-19, FTE enrolled students used to derive NSW and total Australian recurrent expenditure per student for government and all schools excludes Norfolk Island Central School FTE enrolments. Responsibility for the provision of education services by Norfolk Island Central School transitioned to the Queensland Government from 1 January 2022.

Holding other factors constant, a low or decreasing government recurrent expenditure or staff expenditure per FTE student may represent better or improved efficiency.

Care should be taken in interpretation of efficiency data as:

• a number of factors beyond the control of governments, such as economies of scale, a high proportion of geographically remote students and/or a dispersed population, and migration across states and territories, may influence expenditure
• while high or increasing expenditure per student may reflect deteriorating efficiency, it may also reflect changes in aspects of schooling (increasing school leaving age, improving outcomes for students with special needs, broader curricula or enhancing teacher quality), or the characteristics of the education environment (such as population dispersion).
• Reporting requirements and methodologies may vary between years. Refer to footnotes in the data tables.

Nationally in 2020-21, government recurrent expenditure per FTE student in all schools was $17 992 (figure 4.6). Between 2011‑12 and 2020-21, real government expenditure per FTE student increased at an average rate of 1.9 per cent per year (table 4A.14).

Nationally in 2020‑21, government recurrent expenditure per FTE student in non‑government schools was $12 442 (does not include UCC). Between 2010‑11 and 2020‑21 real government expenditure per FTE student increased at an average rate of 2.8 per cent per year.

Nationally in 2020‑21, government recurrent expenditure (including UCC) was $20 940 per FTE student in government schools (excluding UCC this was $17 683). Between 2011‑12 and 2020‑21, real government expenditure (including UCC) per FTE student increased at an average rate of 1.7 per cent per year.

In-school expenditure per FTE student was higher for government secondary schools ($22 260 per FTE student) compared to government primary schools ($18 464 per FTE student). Out-of-school government expenditure per FTE student was substantially lower ($983 per FTE student) (table 4A.15).

Differences in the ‘student-to-staff ratio’ can provide some context to differences in the government recurrent expenditure per FTE student. Further information is available under Size and scope under the 'Context' tab.

‘Student outcomes (national testing)’ is an indicator of governments’ objective that Australian schooling aims for all young Australians to become successful lifelong learners, confident and creative individuals, and active and informed members of the community.

‘Student outcomes (national testing)’ is defined by two measures drawn from the National Assessment Program — Literacy and Numeracy (NAPLAN) and National Assessment Program (NAP) sample assessments:

• National Assessment Program — Literacy and Numeracy (NAPLAN): NAPLAN testing is undertaken by students in years 3, 5, 7 and 9. Measures are reported for the proportion of students at or above the national minimum standard in NAPLAN testing and mean scale score for reading, numeracy and writing.
  • Achieving (but not exceeding) the national minimum standard represents achievement of the basic elements of literacy or numeracy for the year level (ACARA 2022). The mean scale score refers to a mean (average) score on a common national scale.
  • States and territories have different school starting ages resulting in differing average ages of students and average time students had spent in schooling at the time of testing. See table 4.3 for more information on average ages of students and average years of schooling across jurisdictions at the time of testing in 2022.
  • NAPLAN was fully administered online for the first time in 2022. The transition from traditional paper-based testing to online adaptive testing took place from 2018 to 2021. The objective of moving NAPLAN online was to deliver better, more precise and more engaging assessments for schools and students. During transition years, online test results were equated with the paper tests. Results for both the tests were reported on the same NAPLAN assessment scale and are comparable with previous years.
• NAP Sample assessments: NAP national sample assessments are undertaken by students in year 6 and 10, on a triennial, rotating basis. Measures are reported for the proportion of students at or above the proficient standard in NAP assessments and mean scale score for Civics and citizenship literacy, Science literacy (testing undertaken by year 6 students only for all jurisdictions) and Information and communication technologies (ICT) literacy.
  • The proficient standards, which vary across the tests, are challenging but reasonable levels of performance, with students needing to demonstrate more than minimal or elementary skills expected at that year level to be regarded as reaching them.

All data are accompanied by confidence intervals. See the 'Explanatory material' tab for details on NAPLAN and NAP confidence intervals.

A high or increasing mean scale score or proportion of students achieving at or above the national minimum standard (NAPLAN) or proficiency standard (NAP) is desirable.

Nationally for NAPLAN, the proportion achieving the national minimum standard in 2022 was above (with statistical significance) that in:

• 2008 for reading for Year 3 and Year 5 students and below for year 9, but there was no significant difference for Year 7 students (figure 4.7)
• 2011 for writing for Year 3, but no significant difference for years 5, 7 or 9 students (table 4A.34)
• 2008 for numeracy for Year 5 and below for Year 7 students, but there was no significant difference for Years 3 or 9 students (table 4A.38).

Mean scale scores are reported for reading, writing and numeracy in tables 4A.31, 4A.35 and 4A.39 respectively.

Students are counted as participating if they were assessed or deemed exempt (other students identified as absent or withdrawn are counted as not participating). In 2022, NAPLAN participation rates were at or above 90 per cent for most jurisdictions across the reading, writing and numeracy testing domains for years 3, 5 and 7. Participation rates were lower across these domains for year 9 students with rates ranging from 67.8 per cent to 92.1 per cent (ACARA 2022).

Nationally for NAP in 2019, 53.0 (± 2.0) per cent of Year 6 students (table 4.2) and 38.0 (± 2.6) per cent of Year 10 students achieved at or above the proficient standard in civics and citizenship literacy performance (table 4A.45). Mean scale scores for citizenship literacy performance are in table 4A.46. National data on the proportion of students achieving at or above the proficient standard by selected equity group (sex, Indigenous status, geolocation and parental occupation) are in table 4A.47.

Nationally in 2018, 58.0 (± 2.4) per cent of Year 6 students achieved at or above the proficient standard NAP in science literacy. Mean scale scores for NAP science literacy performance are in table 4A.43. National data on the proportion of students achieving at or above the proficient standard by selected equity group (sex, Indigenous status, geolocation and parental occupation) are in table 4A.44.

Nationally in 2017, of Year 6 students and Year 10 students, 53 (±2.4) per cent and 54 (±3.0) per cent, respectively, achieved at or above the proficient standards in ICT literacy performance (table 4A.48). Mean scale scores for NAP ICT literacy are in table 4A.49. National data on the proportion of students achieving at or above the proficient standard by selected equity group (sex, Indigenous status, geolocation and parental occupation) are in table 4A.50.

Source: ACARA (2022) NAPLAN National Report for 2022, ACARA, Sydney.

‘Attainment’ is an indicator of governments’ objective that Australian schooling aims for all young Australians to become successful lifelong learners, confident and creative individuals, and active and informed members of the community.

‘Attainment’ (attainment rate) is defined as the number of students who meet the requirements of a year 12 certificate or equivalent expressed as a percentage of the estimated potential year 12 population. The estimated potential year 12 population is an estimate of a single year age group that could have attended year 12 that year, calculated as the estimated resident population aged 15–19 divided by five.

This indicator should be interpreted with caution as:

• assessment, reporting and criteria for obtaining a year 12 or equivalent certificate varies across jurisdictions
• students completing their secondary education in technical and further education institutes are included in reporting for some jurisdictions and not in others
• the aggregation of all postcode locations into three socioeconomic status categories (as a disaggregation for socioeconomic status) — high, medium and low — means there may be significant variation within the categories. The low category, for example, will include locations ranging from those of extreme disadvantage to those of moderate disadvantage.

A high or increasing completion rate is desirable.

Nationally in 2021, the year 12 certificate attainment rate for all students was 78 per cent. The rates increased as socioeconomic status increased. Across remoteness areas, the rates were substantially lower in very remote areas compared to other areas (figure 4.8).

The Child care, education and training sector overview includes data on the proportions of the population aged 20–24 and 20–64 years that attained at least a year 12 or equivalent or AQF Certificate II or above (that is school and non-school education and training to year 12 or equivalent or above) (tables BA.9–10).

‘Student outcomes (international testing)’ is an indicator of governments’ objective that Australian schooling aims for students to excel by international standards.

‘Student outcomes (international testing)’ is defined by Australia’s participation in three international tests:

• Trends in International Mathematics and Science Study (TIMSS) — conducted by the International Association for the Evaluation of Educational Achievement (IEA) as a quadrennial international assessment — measures the proportion of sampled year 4 and year 8 students achieving at or above the IEA intermediate international benchmark, the national proficient standard in Australia for mathematics and science in the TIMSS assessment.
• Programme for International Student Assessment (PISA) — conducted by the OECD as a triennial international assessment — measures the proportion of sampled 15 year old students achieving at or above the national proficient standard (set to level 3) on the OECD PISA combined scales for reading, mathematical and scientific literacy.
• Progress in International Reading Literacy Study (PIRLS) — conducted by the IEA as a quinquennial international assessment — measures the proportion of sampled year 4 students achieving at or above the IEA intermediate international benchmark, the national proficient standard in Australia for reading literacy in the PIRLS assessment.

A high or increasing proportion of students achieving at or above the national proficient standard, or a high or increasing mean scale score is desirable.

TIMSS
Nationally in 2019, the proportion of students that achieved at or above the national proficient standard for the TIMSS:

• mathematics assessment was 69.6 (±2.5) per cent for year 4 students and 68.0 (±2.9) per cent for year 8 students (table 4.4)
• science assessment was 78.3 (±2.3) per cent for year 4 students and 74.2 (±2.4) per cent for year 8 students (table 4A.55).

Nationally in 2019, a higher or similar proportion of students achieved at or above the intermediate international benchmark compared to previous assessments. Results varied across jurisdictions (tables 4A.54–55).

PISA
Nationally in 2018, the proportion of Australian 15 year old students who achieved the national proficient standard in:

• reading literacy was 59.3 (± 1.3) per cent (table 4A.51)
• mathematical literacy was 54.2 (± 1.6) per cent (table 4A.52)
• scientific literacy was 58.1 (± 1.5) per cent (table 4A.53).

Across the three literacy domains, the proportions of Australian 15 year old students who achieved at or above the national proficient standard in 2018 were significantly lower than the proportions achieved in 2015 for science, but similar to results in 2015 for mathematics and reading (tables 4A.51-53). Compared to the OECD average in 2018, Australian 15 year old students scored:

• higher for reading literacy and scientific literacy
• the same for mathematical literacy (ACER 2019).

PIRLS
Nationally in 2016, the proportion of year 4 students that achieved at or above the national proficient standard for reading literacy was 80.9 (± 2.1) per cent, a significant increase from 2011 although results vary by jurisdiction (table 4A.56).

Of the countries that participated in the PIRLS assessment, Australian year 4 students:

• significantly outperformed students from 24 other countries.
• were significantly outperformed by students from 13 other countries (ACER 2017).

‘Destination’ is an indicator of governments’ objective that Australian schooling aims for all young Australians to become active and informed members of the community positioning them to transition to further study and/or work and successful lives.

‘Destination’ is defined as the proportion of school leavers aged 15–24 years who left school in the previous year, who are participating in further education, training and/or employment. Data are reported for school leavers whose highest level of school completed was year 12, or year 11 and below.

A higher or increasing proportion of school leavers participating in further education, training and/or employment is desirable.

Data are sourced from the Survey of Education and Work and for this indicator relate to the jurisdiction in which the young person was resident the year of the survey and not necessarily the jurisdiction in which they attended school.

This Report includes information on the student destination surveys conducted by each State and Territory government, as context to this indicator (table 4.5). These surveys collect information from a larger number of students within relevant jurisdictions, but the research methods and data collection instruments differ which do not enable comparative reporting.

The proportion of all school leavers aged 15–24 years who left school in 2021 and who in 2022 were fully engaged in work or study was 67.3 per cent (figure 4.9). Proportions were higher for year 12 completers (69.8 per cent), compared to those who completed year 11 or below (60.6 per cent) (table 4A.59).

The Child care, education and training sector overview includes additional data on the participation of school leavers aged 17–24 years in work and study, including data on the Indigenous status of school leavers (tables BA.2–4).

Table 4.5 School leaver destination survey results

Source: State and Territory governments (unpublished).

An objective of the Steering Committee is to publish comparable estimates of costs. Ideally, such comparison should include the full range of costs to government. This section does not report on non‑government sources of funding, and so does not compare the efficiency of government and non‑government schools.

School expenditure data reported in this section

Efficiency indicators in this section are based on financial year recurrent expenditure on government and non‑government schools by the Australian Government and State and Territory governments. Capital expenditure is generally excluded, but as Quality Schools funding and Students First funding cannot be separated into capital and recurrent expenditure, these payments are treated as recurrent expenditure in this section. Expenditure relating to funding sources other than government (such as parent contributions and fees) are excluded.

Sources of data — government recurrent expenditure on government schools

Total recurrent expenditure on government schools is unpublished data sourced from the National Schools Statistics Collection (NSSC) finance.

• Each State and Territory government reports its expenditure on government schools to the Government Schools Finance Statistics Group Secretariat. Recurrent expenditure on government schools comprises: employee costs (including salaries, superannuation, workers compensation, payroll tax, termination and long service leave, sick leave, fringe benefits tax); capital related costs (depreciation and user cost of capital [UCC]); umbrella departmental costs; and other costs (including rent and utilities). The Government Schools Finance Statistics Group Secretariat provides unpublished data on the UCC for government schools, imputed as 8 per cent of the written down value of assets (table 4A.13).
• The Australian Government reports its allocation to each State and Territory for government schools, consistent with Treasury Final Budget Outcomes — including the Quality Schools funding (from 1 January 2018), Students First funding (to 31 December 2017) and a range of National Partnership payments (table 4A.12).
• To avoid double counting, Australian Government allocations are subtracted from the State and Territory expenditure to identify ‘net’ State and Territory government expenditure (table 4A.10).

Sources of data — government recurrent expenditure on non‑government schools

Total recurrent expenditure on non‑government schools is sourced from unpublished data from State and Territory governments, and published data from the Australian Government as follows:

• Each State and Territory government provides unpublished data on its contributions to non‑government schools (table 4A.10).
• The Australian Government reports its allocation to each State and Territory for non‑government schools, consistent with Treasury Final Budget Outcomes — including the Quality Schools funding (from 1 January 2018), Students First funding (to 31 December 2017) and National Partnership payments (see table 4A.12).

Allocation of funding

Quality Schools Package — Australian Government

From 1 January 2018 the Australian Government introduced the Quality Schools Package replacing the Students First funding model which had been in effect since 1 January 2014. The Quality Schools Package is needs based. Commonwealth funding will be based on the Schooling Resource Standard that provides a base amount per student and additional funding for disadvantage. Students with greater needs will attract higher levels of funding from the Commonwealth. Funding is provided for government and non-government schools.

State and Territory governments

In general, State and Territory government schools systems are funded based on a variety of formulas to determine a school’s recurrent or base allocation, with weightings and multipliers added for students facing disadvantage. For non‑government schools, State and Territory governments also provide funding for recurrent and targeted purposes, usually through per capita allocations. Indexation of costs is normally applied to these funding arrangements for both the government and non‑government school sectors. Changes in overall funding by State and Territory governments across years is affected by all these factors, including enrolment numbers and school size, location and staffing profiles. Commencing 1 January 2019 with the signing of the National School Reform Agreement state and territory funding requirements are set as a percentage of the Schooling Resourcing Standard.

User cost of capital (UCC)

The UCC is defined as the notional costs to governments of the funds tied up in capital (for example, land and buildings owned by government schools) used to provide services. The notional UCC makes explicit the opportunity cost of using government funds to own assets for the provision of services rather than investing elsewhere or retiring debt.

UCC is only reported for government schools (not non‑government schools). It is estimated at 8 per cent of the value of non‑current physical assets, which are re‑valued over time.

Source: Australian Government Department of Education Skills and Employment (2020) https://www.education.gov.au/quality-schools-package-factsheet, accessed 9 October 2020.