By Pasi Sahlberg and Glenn Savage
Australia has the resources, the talent and now a government with enough political capital to build better and fairer education systems, if we’re brave enough to act.
With its landslide victory, the second Albanese government has the power to honour the vision set out in the 2019 Alice Springs (Mparntwe) Education Declaration, that all schools should be both “excellent and equitable”.
If you’ve followed Australian education debates in recent years, you may have concluded that the only problem facing schools is a lack of funding. Or that all our students are falling behind their international peers, all teachers are failing to teach well and our education systems are in terminal decline.
None of this is true. We have world-class education – but not for all. This isn’t a simple story of elite private schools or selective public schools outperforming the rest. High-performing schools exist in every state, territory and sector, but these are isolated pockets of excellence. We have never figured out how to learn from these schools and spread their success across the nation.
It takes much more than money to lift results. In Finland, for example, educational success is built on the belief that every child, regardless of background, can thrive if learning is personalised and wellbeing prioritised. Australian school education too often narrows its focus to test scores and rankings. Real improvement demands a broader vision: one that values teacher expertise, supports student engagement and puts equity at the centre of the system.
Education is deeply valued by the Australian public. By international standards, we spend a significant amount on it – 4 per cent of GDP, roughly 20 per cent above the OECD average. But one in every five of these dollars comes directly from families, compared with just one in 10 in the OECD countries, on average. This includes “voluntary” contributions that many parents feel obligated to make, even at public schools – adding to pressure on household budgets.
The perennial problem for Australia is that resources to fund schools are not allocated fairly. Since the 2011 Gonski review, governments have repeatedly promised to fully fund public schools according to the Schooling Resource Standard (SRS) – a model designed to ensure that every school has the resources it needs based on its student population. Yet last year, public schools were funded at just 87.6 per cent of their SRS target, despite educating four out of five disadvantaged students in the country.
Australia’s big problem is a lack of bold thinking about what schools can be. The federal government must act not only as funder or builder but also as a convener of vision – aligning efforts across systems, increasing social equity and reigniting public purpose in education.
Just before the 2025 election was called, all states and territories signed new funding agreements with the federal government under the Better and Fairer Schools Agreement (BFSA). These commit the Commonwealth to increase its share of public school funding from 20 to 25 per cent, with states and territories contributing the rest and a full transition expected by 2034.
Crucially, the deal also closed a loophole that allowed governments to count up to 4 per cent of non-school spending as part of their contribution. That provision will be phased out, with tighter rules on eligible expenditures. In total, the BFSA is projected to deliver an additional $16.5 billion in Commonwealth funding to public schools over the next decade.
With all jurisdictions now on a path to full funding, the national conversation must shift to how the extra money is used to ensure that financial investments lead to better and fairer education systems for all.
This challenge has two inseparable parts: improving student learning outcomes and life chances, and tackling social and economic inequities by narrowing the persistent achievement gaps between advantaged and disadvantaged students. Here are three practical steps the new government should consider:
First, the federal government should work with jurisdictions and school sectors to prioritise immediate and full funding for public schools with the highest levels of socio-educational disadvantage. Under the BFSA, the “path” to full funding stretches out to nearly a decade away. Schools serving the most disadvantaged communities cannot be expected to deliver on national goals while starting with such a handicap.
Nearly 30 per cent of Australia’s 6700 public schools serve communities where more than half of students face significant barriers to learning, from poverty and housing insecurity to disability and trauma. These schools must be placed at the front of the funding queue. With fair and adequate resourcing – including access to qualified teachers, support staff and healthy meals – these schools will be far better positioned to support their students and close longstanding achievement gaps.
A fresh look at timelines, clearer implementation expectations and targeted support for the most disadvantaged schools would send a powerful signal – equity is not just a motherhood statement but also an urgent priority. Our most disadvantaged schools cannot afford to wait.
Second, invest in collaboration between schools, building networks and fostering a culture of professional trust. We must think differently about how we use evidence in schooling policy and reform. For too long, Australian education has been shaped by a narrow, top-down and federally driven approach, often resulting in generic solutions that ignore the diversity of local contexts across this country.
Any experienced educator knows that genuine improvement comes from within schools, not from above them. It emerges from deep professional knowledge, sustained inquiry and the ability to adapt and respond to local needs. The federal government should reposition itself not as the controller of evidence but rather as a steward of collaboration and innovation.
Even well-intentioned reforms flagged in the BFSA – such as universal phonics checks and small-group tutoring – rest on the assumption that what works in one school should work everywhere. The Albanese government can help shift the national narrative on evidence, from standardised solutions to ones rooted in teachers’ professional judgement and local learning. That shift could empower schools not only to implement change but to lead it.
Third, we must address the underlying causes of educational decline, not just its symptoms. Too often, Australian education is framed in terms of a crisis of falling NAPLAN or PISA scores. These figures tell only part of the story, and reflect the symptoms of root problems. As in medicine, the real diagnosis lies deeper. Beneath the surface is a quiet but urgent challenge: growing student disengagement and increasing teacher burnout.
Since 2003, 15-year-olds’ sense of belonging at school has declined by more than twice the OECD average. In Victoria, for example, only half of secondary students say their school provides a stimulating learning environment. These aren’t just unfortunate statistics; they show that our schools are struggling to connect with young people. If students no longer feel valued or inspired, that is a crisis – and one that demands more than test-driven policy responses.
More funding may help, but it is not a panacea. Helping students to catch up and finish school is necessary but not sufficient. If children disengage from school, teachers will follow, and vice versa. Indeed, recent surveys suggest nearly half of Australian teachers and principals are considering leaving the profession. Real reform must make schools places of genuine belonging, curiosity and professional purpose. Ultimately, the challenge is to ensure school is a place where all students are engaged and curious to learn, and where teachers are trusted and inspired to teach.
As the Albanese government takes the reins for its second term, it should use its renewed political capital and fiscal levers not simply to fill funding gaps but also to drive a more ambitious national education agenda, guided by these three steps. Education Minister Jason Clare is right to say Commonwealth investment should come with clear expectations, but these must go beyond compliance. They should reflect a shared national commitment to making Australian schools world-leading.
Australia’s big problem is a lack of bold thinking about what schools can be. The federal government must act not only as funder or builder but also as a convener of vision – aligning efforts across systems, increasing social equity and reigniting public purpose in education. This kind of big-picture thinking has disappeared. Ministerial meetings shouldn’t simply be venues for transactional negotiation but instead spaces for bold ideas and dialogue.
International evidence shows there is more than one path to a successful school system. Yet many Australian school systems expect students with vastly different needs should be taught and assessed in largely uniform ways. Top education systems take a different approach. They empower teachers to tailor their practice and collaborate on school improvement showing that better outcomes come from responsiveness and trust, not from compliance and uniformity.
In recent years, Australia has stood back from global dialogue, as others have pushed ahead. In 2027, however, Australia may be offered an opportunity to host the 17th International Summit on the Teaching Profession – a high-level gathering of the world’s top education systems convened by the OECD and Education International. It’s a perfect opportunity to show that Australia is ready to listen and ready to lead in shaping the future of schooling.
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This article was first published in the print edition of The Saturday Paper on May 24, 2025 as “The next three steps to help public schools”.