History
Shire Christian School has always endeavoured to keep fees ‘affordable’. While the concept of affordability is subjective, the school strives to keep fee increases to a minimum while meeting its educational, financial and statutory obligations. The following graph shows Shire’s school fee increases over the last decade.
The fee increase in 2024 was higher than previous years for two main reasons – teacher salary increases required to keep pace with public school salaries and larger than normal general cost of living increases following the pandemic. More details about the teacher salary increases are outlined below.
In 2025 we are expecting further large impacts on school fees for the following reasons.
1. Reduction in Government Funding
Government funding of independent schools is based on a Direct Measure of Income model (DMI). Under this model, the Department of Education uses parent income data from the ATO to calculate a Capacity to Contribute score (CTC). This score determines the amount of base funding provided to each independent school. As parent incomes rise, the CTC goes up (indicating that parents have a greater capacity to contribute to the cost of education) and this results in lower government funding.
After remaining steady for the past 5 years, Shire’s CTC increased in late November 2023 resulting in a large reduction in government funding. This change happened after the 2024 fee schedule and budget had been published so the impact of this loss of funding will flow into the 2025 fee schedule.
2. Teacher Salaries
Teachers are the backbone of schools and teacher salaries make up 75% of the school’s operating costs. To attract and retain qualified Christian educators, Shire Christian School must offer salaries in accordance with the independent schools enterprise agreement.
Public school teachers received a large salary increase in 2023 and to help keep pace with this change, Shire Christian School passed on an unbudgeted increase in 2024. This year, a new teachers enterprise agreement is being negotiated between the Association of Independent Schools and the Independent Education Union, and we anticipate that another substantial salary increase will be provided in 2025. This increase will directly contribute to higher school fees.
3. Inflation and Rising Costs
The cost of goods and services other than salaries has risen dramatically over the past two years in line with the large increases everyone has experienced in the cost of living. Schools must cover these higher expenses to maintain the quality of education and operation of the school. This directly impacts school fees.
4. Enhanced Facilities
Shire Christian School is investing in upgrades to facilities and technology to provide a better learning environment for students. This includes planned modernisation of classrooms, improved outdoor and sports facilities and new computer equipment including student laptops. These enhancements require a significant financial investment each year and these costs are reflected in school fees. The Principal will be sharing more about upcoming projects in due course.
Conclusion
While the increases in school fees may be challenging for some families, they are necessary to ensure that the school continues to provide a high-quality Christian education into the future and with suitable facilities and equipment. We hope that in explaining the factors behind these rising costs, parents better understand the basis upon which fees are set and can plan for them accordingly.
The 2025 fee schedule will be published in early December 2024 after the school receives confirmation of its CTC score and the level of government funding to be provided.
If you have any questions or need further information, feel free to reach out to me or any one of the Executive team.
Mr Peter Watters
Business Manager