Candid Conversations with Tony Bates PSM

After delivering a comprehensive and insightful analysis, Tony Bates PSM Secretary, Department of Education responded to diverse questions and comments from a very engaged Melbourne Forum audience at last week's candid conversation "Where would Victoria be without the Education State: Challenges and Opportunities".
An attendee remarked that she has spent her working life in the education sector and continues to be active, but was not aware of much that Tony discussed.
Education is a large industry

• All sectors employ over 8% of the Victorian workforce
• 1.1m students in 1593 in government and 726 non-government schools
• Childcare, schools & kindergarten are worth over 5% of GSP
• Education export services are worth over 3% of GSP

Funding is complex

• The Victorian school funding model incorporates 60+ adjustment factors compared to six in the Commonwealth model, so much greater adjustments in Victoria for disadvantage & need
• Commonwealth model is based on a tiny sample of 25 schools, without any allowance for the cost of capital to grow and maintain schools
• Victoria has the largest capex spend in Australia both in nominal and per capita terms
       -> More than 50% of the new Government schools in Australia opened over the last 6 years are in Victoria (over 100 new government schools opened)
• Victoria’s funding is 90.4% of the Commonwealth funding benchmark, but this is complicated by several factors including growing number of students in Victorian Government schools
       -> Most other states are close to this benchmark - this is largely driven by falling attendances in some states

Student outcomes - Victorian system performs well

• Ranked 1st or 2nd in 16 of the 20 NAPLAN domains in 2026
• Smallest NAPLAN results gap for First Nations students
• Best staff to student ratios, other than NT

Staffing is challenging but

• Vacancies have dropped significantly over the last 3 years
• Funding scholarships and other support for new teachers

Future

• Consideration of “full services schools” including continued provision of allied health, medical & family services
• Cohort effect is real and significant
• Value to expanding music & sporting programs
• Piloting systems to improve community access to school facilities
• AI is a challenge, much work underway both proactively and in relation to assessment issues.

Our thanks to Tony Bates PSM for generously giving his time and insights, and to Tony Nippard for hosting the candid conversation.