Raising a child through school in Australia costs more than most parents realise — and the gap between government and private schooling is even wider than the headline figures suggest. Planning ahead with accurate numbers can make the difference between funding your child's education comfortably and scrambling when the bills arrive.
Try it yourself: Use our free Child Education Calculator to estimate the total cost of your child's education and calculate how much you need to save each month to fund it.
The Total Cost of Education in Australia
Education costs span from birth through to university graduation — 22+ years. The headline school fees are just one component. When you add up all the ancillary costs, the true figures are substantially higher.
| School Type | Annual Fees | K–12 Total (Fees Only) | K–12 Total (All Costs) |
|---|---|---|---|
| Government school | $0–$800 | $0–$10,000 | $60,000–$80,000 |
| Catholic / systemic | $3,000–$8,000 | $39,000–$104,000 | $100,000–$160,000 |
| Independent (mid-range) | $8,000–$20,000 | $104,000–$260,000 | $160,000–$320,000 |
| Elite private | $25,000–$45,000 | $325,000–$585,000 | $400,000–$700,000+ |
The "all costs" figures include fees, uniforms, excursions, camps, device levies, sport, music tuition, stationery, textbooks, and tutoring — which the Australian Scholarships Group estimates adds $4,000–$8,000 per year on top of school fees at most levels.
Breakdown of Ancillary Education Costs
ASG's annual Education Cost Report provides the most comprehensive Australian data. Key annual cost categories beyond fees:
| Cost Category | Primary (per year) | Secondary (per year) |
|---|---|---|
| Uniforms & clothing | $450–$900 | $600–$1,200 |
| Excursions & camps | $300–$600 | $500–$2,000+ |
| Books & stationery | $200–$400 | $400–$800 |
| Technology (device levy) | $200–$500 | $300–$800 |
| Sport & activities | $200–$600 | $400–$1,500 |
| Music / performing arts | $0–$1,200 | $0–$2,400 |
| Tutoring | $0–$2,000 | $0–$5,000 |
| School photos, fundraising | $100–$300 | $100–$300 |
University Costs in Australia
HECS-HELP Commonwealth Supported Places (CSPs) allow eligible students to defer tuition fees, repaid through the tax system once income exceeds the threshold ($54,435 in 2025–26). But university involves more than HECS:
| Degree Type | HECS Debt (3–4 years) | Living Costs (away from home) | Total Student Cost |
|---|---|---|---|
| Arts / Education / Commerce | $20,000–$35,000 | $48,000–$80,000 | $68,000–$115,000 |
| Science / Engineering | $30,000–$48,000 | $48,000–$80,000 | $78,000–$128,000 |
| Law / Dentistry / Medicine | $45,000–$80,000 | $72,000–$120,000 | $117,000–$200,000 |
How Much Do You Need to Save?
The key question for parents is: how much do I need to save each month, starting now, to fund my child's education?
Monthly savings needed = FV ÷ [((1 + r/12)^(n×12) − 1) ÷ (r/12)]
Where FV = future value target, r = investment return rate, n = years until needed
Goal: Fund $200,000 for private secondary school (starting in 10 years)
Assuming 7% annual investment return:
Monthly savings needed: ~$1,150/month
Goal: Fund $60,000 for government school + ancillaries (starting now, over 13 years)
Monthly savings needed: ~$215/month
Education Savings Options in Australia
Investment Bonds (Education Bonds)
Tax-paid investment vehicles where earnings are taxed within the bond (at 30% corporate rate) rather than your personal marginal rate. After 10 years, withdrawals are tax-free. Well-suited for long-term education savings if your marginal rate is above 30%. Available from companies like Australian Unity, Generation Life, and Foresters Financial.
Savings Account
Simple, liquid, and flexible. Interest is taxed at your marginal rate. Better for short-to-medium-term goals (under 5 years) where you want access without lock-up. Current HISA rates (4.5–5.5%) make this more competitive than in recent years.
ETFs / Index Funds (in your name)
For time horizons of 7+ years, a diversified share investment typically outperforms savings accounts significantly. Capital gains tax applies on disposal, but long-term CGT discount (50%) applies after 12 months. Drawback: not ring-fenced specifically for education.
Australian Scholarships Group (ASG) Plan
A managed fund specifically structured for education savings, with contributions scheduled to match education cost timing. Regulated by APRA. Not always the highest-returning option but provides structure and discipline for some families.
Private School Scholarships
Most private schools offer merit-based, needs-based, and specialist scholarships (music, sport, academic). The process is competitive and typically requires testing 1–2 years before entry. Key points:
- Scholarship value varies from 10–100% fee remission
- Most academic scholarships are awarded at Year 7 entry
- Competition ratios at elite schools can be 20:1 or higher for full scholarships
- Many schools offer sibling discounts (typically 10–20%) and need-based bursaries not publicly advertised — worth asking directly
Frequently Asked Questions
Is private school education worth the cost in Australia?
The research is mixed. OECD data shows Australian private school students outperform government school students in PISA scores, but much of this difference is explained by socioeconomic selection rather than school quality itself. The strongest predictor of educational outcomes remains parental education level and home environment, not school sector.
Can I salary sacrifice to fund education costs?
Some employers (particularly in the not-for-profit and healthcare sectors) allow salary sacrifice for education expenses, including school fees, under FBT exemptions. Check with your HR department and payroll provider.
What is the HECS repayment threshold?
For 2025–26, HECS-HELP repayments begin at a taxable income of $54,435. The repayment rate starts at 1% and rises to 10% for incomes above $141,848. Repayments are automatically deducted via the tax system — there's no manual repayment required.
Plan your child's education savings
Use our Child Education Calculator to estimate total education costs and calculate the monthly savings needed to fund them comfortably.
Also explore: Compound Interest Calculator · Childcare Cost Calculator