Victoria’s public schools and TAFEs received the lowest levels of funding in the country, according to figures in the latest report from the Productivity Commission.
The Report on Government Services 2026 showed funding per Victorian public school student was $2,325 below the national average in 2023–24, and $3,983 below the level in New South Wales for the same period.
The report also examined vocational education and training (VET) funding. It found Victoria spent $1.92 less per hour of VET delivery than the national average in 2024, or about nine per cent less. Compared with New South Wales, the gap was $3.71 per hour, or 16 per cent less.
Mr Justin Mullaly, president of the Victorian branch of the Australian Education Union, said the findings showed funding differences between states and territories.
“Victorians need the Premier and Treasurer to act by immediately investing in public education at levels which are at least that of other states and territories,” he said.
Mr Mullaly said public school funding for 2026 had been set at the same level as 2023, which he said reflected a decision not to provide $2.4 billion in additional funding through to 2031.
“In Victoria, public school funding for 2026 has been purposefully capped at the same level that schools received in 2023,” he said.
He also pointed to pressures in the TAFE sector, citing findings that some institutions had recorded losses in recent years.
“The lack of full and fair funding also contributes to the chronic shortage of teachers in schools and TAFEs,” Mr Mullaly said. “This cannot be properly addressed unless the massive funding shortfalls are fixed.”
Mr Mullaly said students in Victoria should receive comparable levels of support and resources to those in other states and territories.




