School fees and inflation rates

The most expensive private schools in New South Wales receive the highest amount of government funding. In addition to this, they have also raised their fees well above the inflation rate. Our Lady of Mercy College, for instance, currently sits in second place for amount of Government funding to elite schools, and has raised its fees by 12.7% whilst the inflation rate sits at 3%. The schools responded by stating that the inflation rate does not correlate to the increasing cost of providing education. Brian Croke, executive director of the NSW Catholic Education Commission, said that the rise in fees could be due to the impending changes in funding policies. In 2009, the Government plans to base funding on the affluence of each school's students. As such, schools are disproportionately raising fees to create a surplus which will see them through the 2009 funding cuts. Duncan McInnes, execute director of the NSW Parents' Council, says this tactic is unjustified, as the fees paid by parents should cover the immediate costs of education, not going towards a nest-egg for four years' time.