Effects of school funding on students’ academic performance: New empirical evidence from Australia, 2009-2022

This study examines school funding in Australia and its effects on students’ academic performance, distinguishing between government and non-government schools, during the period 2009-2022. Using graphical techniques, panel data estimations as well as difference and system generalized method-of-moments (GMM) estimators, the results indicate that independent and Catholic schools received much higher funding per student than government schools. The findings suggest that government recurrent funding was positively associated with student academic achievements, especially for government schools. Also, on average, students from non-government schools academically performed better than those from government schools. Student-teaching staff and non-teaching staff ratios, school size (i.e., number of students), their socio-economic backgrounds, and the proportions of students with non-English speaking and Indigenous heritage also affected their academic performance. Based on these results, four policy recommendations are suggested to improve the allocation of government funding and students’ academic performance, especially for students from government schools.