Funding overhaul for private schools

Hundreds of private schools could be at risk of losing some of their federal funding under a radical overhaul flagged by the Federal Government.

In a move that will send tremors through the independent schools sector, Education Minister Julia Gillard has blasted the existing system as complex and confusing, and declared that a complete review of schools funding would be finished by 2011.

Funding cuts may not be confined to the nation's wealthiest private schools; a recent report also found a large percentage of Catholic schools were receiving more federal help than they were technically entitled to.

In keeping with Labor's pre-election promise to retain the existing funding model until 2012, changes would not be introduced until 2013. But Ms Gillard has made it clear she wants radical change across private and public schools funding.

In a little-noticed speech delivered late on Wednesday, Ms Gillard said she did not believe the existing funding arrangements served the interests of schools, students, teachers or families, and declared it was time to move beyond the "public versus private divide".

Her announcement prompted immediate speculation about a revival of former opposition leader Mark Latham's "hit list", the policy Labor took to the 2004 election that would have resulted in 67 of the nation's wealthiest schools losing federal funding.

"Parents should have no doubt the planned review of funding is designed to allow Labor to change it all," Federal Opposition education spokesman Tony Smith said. "Labor never mentioned making changes to private health insurance before the election and look what they've done. Parents should be very worried private schools will be next."

Melbourne Grammar School principal Paul Sheahan said that while Labor had promised to maintain existing funding arrangements for the next four years, "2013 to 2016 could be a time when the warm breath of the Federal Government's views could really be felt".

"Whenever there's a review of funding, people in the non-government sector tend to get nervous, because it almost indicates, by implication, that some funds will diminish," Mr Sheahan said.

"I agree that the system constantly needs refinement, but it would be very disturbing if there is a major upheaval to non-government funding."

Ms Gillard wants to extend the model of funding private schools on a socio-economic basis to public schools in a bid to target disadvantage and move away from the old notions of class warfare in schools.