The Futurity Investment Group Cost of Education Index has revealed that Sydney remains the most expensive city for Independent schooling in Australia, with a staggering $411,108 estimated cost over the course of a child’s education at an Independent school.
The research has revealed the total cost of an Independent education in Sydney is 17% or $60,950 above the national average. The Futurity Investment Group Cost of Education Index also revealed Sydney is Australia’s most expensive city for Government education.
It’s estimated the total cost of a Government education in Sydney will be $150,323 over 13-years for a child starting school in 2025, 22% above the national average. When you look at Government schooling, there is no such things as ‘free’ education. Extra costs such as levies, uniforms, technology, textbooks, excursions, camps, and transport need to be considered.
Today, with the rising cost of living – and education – more and more families are facing the bitter reality that the best schools are becoming out of reach.
But solutions do exist. And with the right knowledge, process and guidance, they can navigate the cost of education in New South Wales.
Cost of living Challenges
The cost-of-living challenges for families are well documented. Three in four Australians (77%) are extremely or very concerned with the rising cost of living. The challenge is forcing nine in ten Australians (89%) to make changes in their lives and spending in response.
Of the parents surveyed, almost 29% said they had gone without buying things for themselves and 24% said they had gone without family holidays to pay for their child’s education. More than one in ten (11%) were getting financial assistance from a grandparent to pay for their child’s education and 27% of respondents were using their credit card to pay for these costs.
But which costs are causing the most amount of pressure for Australian parents each month?
Some of the most significant include mortgage and rent (selected by 31% of respondents), utilities and rates (selected by 30%), and groceries (selected by 31%).
One in four Australian parents (25%) find paying for their children’s school fees or voluntary contributions is having a significant or moderate negative impact on their households.
We’re a nation that values education
Australians are strong advocates for quality education, with close to nine in ten parents (88%) believing schooling is essential for their children to thrive in life.
In the 2024 study the biggest barrier for parents sending their child to their preferred school is cost (26%) with other barriers being location (19%), zoning (19%) and school capacity/waitlist (18%).
Education is likely to be a priority spend item for parents, with 50% of parents believing it is the role of parents to financially contribute to their child’s lifelong education throughout their whole life.
It is telling that half of all parents who responded to the 2024 study report that they have someone else contributing to the cost of schooling (52%).
Parents are intentionally preparing for the costs of educating their children with nearly two thirds of parents (64%) taking a highly intentional approach to preparing for their child’s education costs.
Schooling costs more than just tuition
One of the common missteps parents make when determining the cost of education in Australia is to base averages on school fees alone.
But the research shows that it is the ‘hidden’ costs – or ancillaries – that often add up the most.
In fact, these extra items account for more than 90% of total education costs in Government schools, 60% in Catholic schools, and 50% in Independent schools.
Families have no choice but to factor in the costs of uniforms, transport, camps, excursions, electronic devices and many other additional costs.
Is education expensive in New South Wales?
So, what is the average cost of education in New South Wales?
Sydney is home to Australia’s most expensive Independent schooling, sitting at a whopping 17% above the national average.
Government schooling in New South Wales is also some of the nation’s most costly, with children who start their schooling journey in 2025 expected to pay $27,000 more than the national average across their education.
Sydney’s Catholic sector experienced a 5% increase during the past year, bringing it to 2% more than the national average.
The table below breaks down the combined averages of tuition fees and ancillary costs nationally compared to New South Wales over 13 years – according to schooling sector and location.
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| NSW (Regional) | $89,448 | $148,960 | $250,900 |
*These numbers are population-weighted and projected over a 13-year period and provided as a guide only. The actual costs cannot be guaranteed.
How to help clients achieve their education savings plans
Quality education comes at a cost. But it’s also one your client can plan for today – to ensure their child has a better tomorrow.
When looking at the figures in this article, it’s easy to see why a parent would feel a sense of dread or apprehension at how they will make this work. But as with everything in life, with the right knowledge and guidance, it is possible for them to afford the education they want for their child – comfortably.
The key is to help them to create a solid plan – and encourage action.
For over 50 years, Futurity have been helping Australian families to afford the costs of education through our Education Bond.
Our solutions are designed to allow you to help your clients save and accumulate funds for schooling expenses in a tax-effective way. Furthermore, other features around estate planning and intergenerational wealth transfer are available.
