Over 1 in 5 Australian Students Dropping Out of School

Year seven students arrive to Elevation Secondary College in Craigieburn, Melbourne, Australia, on Oct. 12, 2020. AAP Image/James Ross

One in every five Australian students is not completing the full 13 years of basic education and the attendance rate of students in years seven to 10 has declined dramatically, a new report from the Productivity Commission reveals.

Nationally, just 79 percent of students completed year 12, compared to 83.3 percent five years earlier.

Nationally, the retention rate was lowest in the Northern Territory—at 62.6 percent—and Tasmania—at 71.7 percent. Australian Capital Territory (ACT) students were the most likely to stay in school, at 87.8 percent.

There are marked differences between different cohorts. For instance, students living outside of major cities, and those from poorer families, have worse results for attendance, retention, engagement, and achievement during their school years.

In government schools, almost 25 percent of those who start year 10 do not go on to complete year 12, whereas for non-government schools the proportion is just 12.8 percent.

Indigenous student dropout rates are more than double that of non-Indigenous students. Just under half of all Indigenous students (43.6 percent) who were full-time in year 10 failed to continue through to year 12, compared with 20 percent of non-Indigenous students.

More than two in 10 Indigenous students between year one and 10 were failing to regularly attend school, rising to around half in very remote areas.

Skipping Class Also on the Rise

Many of those students who are remaining enrolled are not attending all their classes.

Just over half of all high school students had skipped at least 10 percent of school days, far higher than the 31.5 percent recorded in 2015.

This is despite government spending more than ever on education: the federal government’s contributions to public schools rose by 86 percent in real terms in the decade to 2022; states and territories lifted their contributions by 30 percent over the same period.

In the non-government sector, federal spending rose by 63 percent to $15.4 billion (US$10 billion), while state contributions grew by 28 percent.

The federal and state governments are currently negotiating a new funding agreement, with Canberra under pressure to lift its contribution to government schools from 20 percent to 25 percent.

Under the Gonski reforms, all schools are meant to reach a base level of per-student funding, with state and territory governments making up the difference between that figure and what the federal government provides. In 2024, that is $13,557 for primary students and $17,036 for secondary students.

However, the ACT is the only one that meets that benchmark for public schools; the rest have failed to meet the targets they agreed to under the old funding agreement, which was signed in 2018.

Education Minister Jason Clare has said he will not increase funding to the states unless it comes with binding commitments to improvements in students’ academic performance, as well as initiatives to address mental health, family dysfunction, and learning impairments.

Private School Versus Public School Funding

The report also highlights major disparities in funding.

In total, non-government schools received $19.9 billion in 2021/22, representing a $2.6 billion increase over the previous year—a 15 percent rise, while government schools received $58.7 billion—an increase of $3.8 billion or just seven percent more.

Over the longer term, public school funding increased by 20.3 percent in real terms between 2012 and 2022—or two percent a year—while private school funding increased by 37 percent over the same period.

Australian Education Union federal president Correna Haythorpe said only 1.3 percent of public schools were funded at the level agreed to by governments, compared with 98 percent of private schools, which was driving the inequality in outcomes.

“We don’t have a level playing field in education where every child gets the full support they need to succeed,” she said.