The Effect of Public School Pay Raises Spreads, NSW Private Schools See Shocking Tuition Hikes in 2025 – Sydney Auction Clearance Rate at 63%

Week’s Key Focus

Due to rising teacher salaries and soaring operating costs putting pressure on budgets, parents of private school students in NSW are set to face significant tuition increases in 2025. Last month, the state government announced a 10% pay raise for 95,000 public school teachers over the next three years, which has led private schools to increase their salaries as well to keep up with public school pay levels.

Several private schools in Sydney have already announced their tuition fees for the coming year. Danebank plans to raise Year 12 tuition fees by 9%, surpassing $30,000, while mid- and low-fee schools in regional NSW are facing hikes of up to 24%. Last year, high-fee private schools raised tuition by 12%, which principals attributed to the impact of salary increases in the public system.

The principal of Trinity Grammar pointed out that the scarcity of teachers is the main factor driving up costs, and parents of non-government schools will bear the burden of higher tuition fees as a result. Another private school principal noted that the pressure to further raise teacher salaries has already emerged as competition for teachers intensifies.

Last year, Kambala became the first school in Sydney to raise Year 9 tuition fees above $51,000, making it one of the most expensive schools in Australia. St Andrew’s Cathedral School also announced a 6.5% fee increase, with Year 10 fees now exceeding $45,600, aimed at attracting and retaining high-quality teachers. The school council chair explained that this increase was primarily due to the Department of Education raising teacher salaries by 15% over the past two years.

According to data from education finance company Edstart, 63% of about 150 NSW private schools surveyed expect tuition fees to rise by more than 5% next year. Independent and faith-based school teacher salaries are expected to increase significantly in 2025, and without a corresponding increase in government funding, private school fees will inevitably rise further.

The Independent Education Union has urged private schools to maintain a “traditional premium” to attract top-quality teachers. The Association of Independent Schools of NSW (AISNSW) plans to raise teacher salaries by 3%-4.5% in the coming years to compete with public sector pay increases. AISNSW CEO noted that public schools, as the largest employer of teachers, have a direct impact on private school pay policies, and private schools consider family financial pressures when setting their annual budgets.

In regional areas, some private schools, such as Emmanuel Anglican College in the Northern Rivers and Xavier Catholic College, are seeing fee increases of nearly 24% and 21% for 2024, respectively. With negotiations between the Independent Education Union and AISNSW still ongoing, some private school teachers currently earn less than public school teachers, and the union hopes to address these disparities through the negotiations.

From 2009 to 2023, the proportion of teachers employed by private and faith-based schools increased, while the share in public schools declined. Data from 2020 shows that private school tuition fees have increased by more than 50% on average over the past decade.

Auction Results Last Week

Sydney: 1,446 properties went to auction, 898 auction results reported, 563 sold, clearance rate of 63%, total auction value of AUD 644,734,382, median house price AUD 1,523,500;
Melbourne: 1,372 properties went to auction, 972 auction results reported, 595 sold, clearance rate of 61%, total auction value of AUD 456,563,056, median house price AUD 945,000.