National education strategy has done 'little' to improve student outcomes, report says

Topic: Education

Children in a classroom

A report has found inequalities in educational achievement have not been addressed. ( AAP: Dan Peled )

The Productivity Commission has issued a scathing assessment of Australia's national education strategies, saying they have done "little" to improve student outcomes during the past five years.

Key points:

  • The report says teachers and school leaders should get more support
  • The commission also wants a bigger focus on student wellbeing in schools
  • Unions say it is "disappointing" the review does not address funding

The report, released today, examined the National School Reform Agreement — a strategy agreed upon in 2018 by federal, state and territory governments to improve student outcomes.

It found national reading and numeracy results had generally declined since 2018, and inequalities in educational achievement had not been addressed.

In a statement, Education Minister Jason Clare described the report as "damning" and said it "made it clear that serious reform is needed".

The commission suggested the new five-year educational strategy across the Commonwealth, states and territories should focus on better supporting teachers and school leaders to do their jobs, and help schools to implement evidence-based teaching strategies.

It also wants student wellbeing to be made a national priority to help address entrenched inequality and improve overall achievement.

That is something recent graduate Catie Owens would support.

She said she was a "pretty happy kid" until grade 9 when she started struggling with school.

High school student Catie Owens wearing a black top, in a room with a chalkboard.

Catie Owens says she would not have finished year 12 without the support she received at the Big Picture School. ( ABC News: Craig Heerey )

"I just didn't get up in the mornings, so that was really hard for my parents, and they were looking for other options," she said.

"I think it was a mix of pressure from mostly myself and then just like others around me at school."

That was until she started at Launceston Big Picture School, a not-for-profit, fee-free school which prioritises student wellbeing through a student-led curriculum.

Ms Owens said she would not have finished year 12 without the support she received at her new school.

It is the kind of approach the Productivity Commission wants to see more of.

Goals set, but accountability lacking

While the previous National School Reform Agreement, which expired at the end of 2022, did set goals of improving equality for some of the most vulnerable students, the commission said a lack of data, regular reporting and clear measures meant there was little accountability.

That, it said, needed to change.

"The commission recommends that each state and territory should set a target to reduce the share of students who are falling behind," commissioner Natalie Siegel-Brown said.

"Targets do not guarantee success but they create a clear direction for reform and make governments accountable."

She also worried that while teachers in Australia tended to work longer hours than those in many other countries, they had less time for activities that could make meaningful change. The commissioner believed the teacher shortage was partly to blame.

A woman wearing a black jacket over a multi-coloured top.

Correna Haythorpe is the president of the Australian Education Union. ( ABC News: Lincoln Rothall )

Correna Haythorpe, the president of the Australian Education Union (AEU), said the report failed to address the elephant in the room.

"You cannot separate improving educational outcomes for students from school funding because school funding delivers the additional teachers, support staff and learning programs that these children need," she said. 

"We are disappointed that, once again, funding has been excluded from a major report."

System 'letting our students down'

It is a sentiment Sydney science teacher and NSW Teachers Federation member Alice Leung agrees with.

"The way that the system is structured, it is letting our students down because teachers actually can't cater for the students' needs as much as they need to because we are so overworked," she said.

Alice Leung wearing a black jacket and top, smiling in a portrait taken outdoors.

Alice Leung is a high school head teacher and Teachers Federation representative. ( Supplied: Alice Leung )

Adding to the workload were large class sizes which made it more difficult for teachers to dedicate time to students who might need more attention, she said.

"When you've got class sizes that are 30 [pupils] and you've got … a mixture of students with very complex needs, a lot of students with additional needs, and you don't always get that classroom support, it's very difficult," she said.

Mr Clare said the report would play a key role in the development of a new national school reform agreement, adding that funding needed to be tied to reforms that would make a practical difference to student outcomes.

While education unions have criticised a decision to extend the current funding agreement for 12 months to allow time for a new funding review, the minister says it is crucial to find policies that work.

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Productivity Commission report on Australia's education future

Universities Australia welcomes the Productivity Commission’s findings that the tertiary education system’s policy settings need a rethink to ensure Australia can adapt to growing and changing education and skills needs.

In its interim report  From learning to growth , released yesterday, the Commission noted that price differences between courses are unlikely to change what students choose to study.

Universities Australia Chief Executive Catriona Jackson said Australia’s future prosperity hinges on having more skilled workers across all sectors of the economy, not fewer.

“The Productivity Commission notes that ‘rationing’ places ‘impedes’ the efficient acquisition of skills by limiting access or distorting course choice,” Ms Jackson said.

“Universities educate the skilled workers and produce the research breakthroughs that drive economic growth – both of which are key levers to lifting productivity and prosperity.

“In the face of critical skill shortages, economic uncertainty and a changing domestic and global environment, our universities will play an even greater role as we move into the future.

“We need a funding model that reflects our broad student base, and one that recognises universities’ importance to meeting our labour market needs and driving Australia’s long-term productivity.

“Equity and accessibility are hallmarks of Australia’s world-leading university system, and these values should be reflected in the way that we fund higher education.

“We are pleased that the Job-ready Graduates package will be closely examined, among other issues, through the Government’s Universities Accord process.

“The Productivity Commission’s report has challenged a number of the assumptions underpinning the Job-ready Graduates package. This analysis will provide useful input to the Accord discussion.

“Australia needs a strong university system that delivers in our national interest, and we look forward to working with the Government to achieve that through the Accord process and beyond.”

Universities Australia also welcomes the Commission’s suggestion to ensure public funding supports ongoing skill acquisition.

“To ensure Australia has the pipeline of workers that employers and the economy need to grow and prosper, we need to make it easier for people to retrain and upskill,” Ms Jackson said.

“At present, short courses or a microcredential require payment up front, and fees aren’t tax deductible unless the course relates to a person’s current job. We can fix this problem by extending income contingent loans to anyone undertaking short courses and microcredentials.

“We look forward to engaging with the Productivity Commission as it prepares the final report.”

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Productivity commission’s report on government services in education released.

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Data from the Productivity Commission’s Report on Government Services in childcare, education and training, released on 5 February 2024, has prompted calls for a fairer system where all public schools are fully funded.

The Australian Education Union (AEU) says the new figures – showing private school funding increasing at almost twice the rate of public school funding – underline the urgent need for a fairer system where all public schools are fully funded.

Data from the Productivity Commission’s Report on Government Services 2024 shows public school funding increased by 20.3% (or 2% per year) in real terms between 2012-13 and 2021-22. Private school funding from governments increased over the same period by 37%.

The AEU said the report also shows private schools have fewer students per teacher than public schools.

“This is despite public schools educating the vast majority of students with higher needs including those from disadvantaged backgrounds, rural and remote areas, students with a disability and Aboriginal and Torres Strait Islander students,” it said.

AEU Federal President Correna Haythorpe said only 1.3% of public schools are funded at the government Schooling Resource Standard (SRS) compared to 98% of private schools. The SRS is the minimum amount of funding a school needs to meet the needs of its students.

“We don’t have a level playing field in education where every child gets the full support they need to succeed,” Ms Haythorpe said.

“Inequality in funding is driving inequality in outcomes between students of different backgrounds and locations. Those unacceptable gaps can be as large as six years of learning between students of the same age. Making our education system fairer starts with fairer funding,” she said.

An Expert Panel warned governments in December that the fact that inequality in funding persists – and is predicted to persist in nearly every jurisdiction – is an issue that requires urgent action.

“The call to action around reaching full funding for government schools – across all jurisdictions – is all the more urgent because of the full funding arrangements that already exist in the non-government sector,” the Expert Panel said.

Ms Haythorpe said the Prime Minister promised to work with State and Territory governments to deliver full funding of public schools.

“The Prime Minister must keep his promise this year and ensure all public schools are funded at 100% of the SRS by 2028, at the latest,” she said.

She said the Commonwealth Government’s current offer of 22.5% of the SRS should be revised to 25% of the SRS for all states and 40% of the SRS for the Northern Territory by 2028.

“There also needs to be a significant investment of capital funding in new bilateral agreements struck this year,” she said.

“With full funding, principals and teachers can change the lives of students across the nation. It will mean more help for children at risk of falling behind and more support for teachers inside and outside of the classroom to cut their workloads and help address the growing needs of students.”

More reading

Landmark deal for WA public schools’ funding

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Productivity Commission (2011 - 2024)

The New Zealand Productivity Commission was an independent Crown Entity that operated between April 2011 and February 2024.  The Commission's inquiries, research and corporate documents have been re-published here on the Treasury website.

The Commission was established by the New Zealand Productivity Commission Act in December 2010 and disestablished by the New Zealand Productivity Commission Act Repeal Act 2024 in February 2024.

The principal purpose of the Commission was to provide advice to Government on improving productivity in a way that is directed to supporting the overall well-being of New Zealanders, having regard to a wide range of communities of interest and population groups in New Zealand society.

The Commission's work focused on:

  • Undertaking in-depth inquiries on topics referred to it by the Government
  • Carrying out productivity-related research that assists improvement in productivity over time
  • Promoting understanding of productivity issues.

The Productivity Commission's final annual report was published on 29 May 2024. See New Zealand Productivity Commission Annual Report 1 July 2023 - 29 February 2024 .

Re-published material and redirects

The Commission's website was shut down on Wednesday, 22 May 2024. Key material (around 3285 files) has been re-published here on the Treasury website so it can remain publicly accessible.  All productivity.govt.nz web traffic is redirecting to this page.

The Treasury plans to release in August 2024 a data file that maps legacy productivity.govt.nz file and page URLs to their equivalents on the Treasury website if they have been re-published.

Improving economic resilience - Productivity Commission inquiry material 2022 - 2024

A fair chance for all: breaking the cycle of persistent disadvantage - productivity commission inquiry material 2021 - 2023, immigration settings - productivity commission inquiry material 2021 - 2022, new zealand firms: reaching for the frontier productivity commission inquiry material 2019 - 2021, technological change and the future of work - productivity commission inquiry material 2019 - 2020, local government funding and financing - productivity commission inquiry material 2018 - 2019, low-emissions economy - productivity commission inquiry material 2017 - 2018, state sector productivity - productivity commission inquiry material 2017 - 2018, new models of tertiary education - productivity commission inquiry material 2015 - 2017, better urban planning - productivity commission inquiry material 2015 - 2017, using land for housing - productivity commission inquiry material 2014 - 2015, more effective social services - productivity commission inquiry material 2014 - 2015, boosting services sector productivity - productivity commission inquiry material 2013 - 2014, regulatory institutions and practices - productivity commission inquiry material 2013 - 2014, towards better local regulation - productivity commission inquiry material 2012 - 2014, strengthening trans-tasman economic relations - productivity commission inquiry material 2012, international freight transport services - productivity commission inquiry material 2011 - 2012, housing affordability - productivity commission inquiry material 2011 - 2012, working papers / research papers / seminars, productivity commission working papers and research papers, productivity by the numbers 2013 to 2023, business by the numbers, productivity hub: sausage roll seminars, corporate information, annual reports of the new zealand productivity commission, statements of intent of the new zealand productivity commission, statements of performance expectations of the new zealand productivity commission, briefings to the incoming minister - new zealand productivity commission, letters of expectation from minister of finance to new zealand productivity commission, reviews of the new zealand productivity commission's research function, former chairs and commissioners of the new zealand productivity commission, disestablishment information, disestablishment of the productivity commission information release, new zealand productivity commission act repeal act 2024 (legislation.govt.nz).

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Productivity inquiry (2023)

Final report released.

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What we’ve been asked to look at

The Productivity Commission was asked to review Australia’s productivity performance and recommend an actionable roadmap to assist governments to make productivity-enhancing reforms.

This Inquiry is the second in a series, undertaken at 5 yearly intervals – the previous Inquiry was completed in 2017.

Call for submissions paper

The Commission released a paper calling for submissions and comments to the Inquiry. Individuals and organisations providing submissions or comments should have provided evidence to support their views, including data and specific examples where possible.

Initial submissions were due by 23 March 2022.

The Commission will advise subscribed parties when this paper is released.

Read the call for submissions paper

Interim reports

Productivity growth is about harnessing our ingenuity to do more with the resources we already have — working smarter, not harder — and investing in the latest technology and the best ideas.

The Productivity Inquiry focused on the enablers of productivity growth in a modern, market-based, service-oriented world.

The Commission will seek further information and feedback from interim reports at a date to be determined in 2022.

You were invited to examine these 6 interim reports and to make written submissions by 21 October 2022.

Two public hearings will be held online and in person from our Melbourne office on 7 and 8 November 2022.

Public hearings provide participants with the opportunity to elaborate on their submissions, respond to submissions of others, and to discuss issues with Commissioners.

Register to observe or participate

Interim report 1

The first interim report provided the broad productivity context for the exploration of productivity-enhancing reforms detailed in a series of forthcoming interim reports.

Read The Key to Prosperity

Interim report 2

The second interim report explored how digital technology and data can be used to improve Australia’s productivity.

Read Australia's data and digital dividend

Interim report 3

The third interim report explored how encouraging innovation across the vast majority of Australian businesses and in the government sector can improve Australia's productivity.

Read Innovation for the 98%

Interim report 4

The fourth interim report investigated how policy can address key challenges and opportunities facing the business environment.

Read A competitive, dynamic and sustainable future

Interim report 5

The fifth interim report outlined potential ways governments can improve education outcomes to support future productivity.

Read From learning to growth

Interim report 6

The sixth and last interim report explored how a well-functioning labour market is critical to productivity growth and social wellbeing.

Read A more productive labour market

Final report to Government and release

The final inquiry report was handed to the Australian Government on 7 February 2023, then tabled and publicly released on 17 March 2023.

The report is divided into 9 volumes: an overview document (volume 1) that presents our policy agenda, and inquiry content volumes (volumes 2–9) that explain in greater detail the reforms that make up the policy agenda, including a modelling appendix.

Read Advancing Prosperity Our media release Treasurer's media release

Public hearings

Please register before Friday 4 November 2022 .

Register to observe

productivity commission report on education

Final submissions

due by Friday 21 October 2022

productivity commission report on education

Next milestone

Final report to be handed to the Government in February 2023 .

Promoting Economic Dynamism, Competition and Business Formation

The Productivity Commission provided a submission to the House of Representatives Standing Committee on Economics Inquiry into promoting economic dynamism, competition and business formation .

Read the submission

Article in The Conversation

Commissioner Stephen King says Australia is a living testament to the benefits of productivity growth. The Productivity Commission’s second productivity report provides a road map, focusing first on the high-impact low-cost reforms. Some are quick and others will take time and planning.

Read the article

Interim report article: Australia's data and digital dividend

Commissioner Stephen King says Australia is in the middle of a digital and data revolution. The Productivity Commission’s second interim report for our five-year productivity inquiry looks at how these new technologies can grow our economy.

Update - 7 April 2022

An update on the focal areas for the Inquiry and what's next.

  • Productivity Inquiry Update (PDF - 203 Kb)
  • Productivity Inquiry Update (Word - 642 Kb)

Inquiry timeline

Dates will be added when known

  •  7 Feb Terms of reference
  • 21 Feb Call for submissions and comments
  • 23 Mar Initial submissions due
  •  3 Aug Key to Prosperity Interim report 1
  • 23 Aug Data and digital dividend Interim report 2
  • 26 Sep Innovation for the 98% Interim report 3
  • 28 Sep Competitive, dynamic and sustainable Interim report 4
  •  4 Oct From learning to growth Interim report 5
  • 13 Oct A more productive labour market Interim report 6
  • 21 Oct Final submissions due
  • 7 + 8 Nov Public hearings
  •  7 Feb Final report sent to Government
  • 17 Mar Advancing Prosperity Final report

Who are the Commissioners?

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The Productivity Commission is expected to be asked within weeks to overhaul how power generators are paid to supply the National Electricity Market, to ensure enough clean and firm energy is built to keep the lights on as coal power exits.

Paying generators for not only the power they produce but also their ability to switch on and off to plug supply gaps will be critical to ensure grid reliability as baseload coal plants shut down between now and about 2038.

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COMMENTS

  1. 4 School education

    PC (Productivity Commission) 2012, Schools Workforce, Research Report, Canberra. PM&C (Department of the Prime Minister and Cabinet) 2014, Roles and responsibilities in education, Part A: Early Childhood and Schools, Reform of Federation White Issues Paper 4, Canberra.

  2. National School Reform Agreement

    The Productivity Commission's review of the National School Reform Agreement (NSRA) looks at ways governments can work together to provide a high quality and equitable education for all students. The report includes a focus on improving outcomes for Aboriginal and Torres Strait Islander students, who are one of four 'priority equity cohorts ...

  3. Report on Government Services 2022

    4 School education. Impact of COVID-19 on data for the School education section. COVID-19 may affect data in this Report in a number of ways. This includes in respect of actual performance (that is, the impact of COVID-19 on service delivery during 2020 and 2021 which is reflected in the data results), and the collection and processing of data ...

  4. Review to Inform a Better and Fairer Education System

    In December 2022, Education Ministers agreed to establish the Review to identify the reforms needed to drive real and measurable improvements for all students, particularly those most at risk of falling behind. The Review built on the work of the Productivity Commission and their review of the NSRA, released on 20 January 2023. This review ...

  5. Productivity Commission

    The Productivity Commission's report sets out in broad terms the key areas where reform is most needed. The Expert Panel will build substantially on this and will work with State and Territory Governments, teachers, principals and other education experts on what these detailed reforms should be.

  6. OECD education report underlines need for serious reform

    The report provides a valuable international perspective and will inform future reform efforts, including the review into the next National School Reform Agreement (NSRA) led by Dr Lisa O'Brien. It shares common themes with the Productivity Commission's final report on the NSRA, which was scathing in its criticism of the current agreement.

  7. Productivity Commission report proposes radical change to the way

    Governments should consider funding post-school education through a voucher system where funds go to students instead of institutions, according to a new report by the Productivity Commission.

  8. Productivity Commission reveals damning findings on education system

    Productivity Commission reveals damning findings on education system. Posted Fri 20 Jan 2023 at 3:01am, updated Fri 20 Jan 2023 at 3:10am. Watch. 4m 5s. A report on national education strategies ...

  9. Productivity Commission's draft report on early childhood education and

    The Productivity Commission has released its draft report on the future of early childhood education and care (ECEC).. The draft report, A path to universal early childhood education and care, considers how to build an affordable, accessible, high quality, universal early learning system. The report includes a range of draft recommendations to achieve this.

  10. National education strategy has done 'little' to improve student

    The Productivity Commission has issued a scathing assessment of Australia's national education strategies, saying they have done "little" to improve student outcomes during the past five years ...

  11. Report on Government Services 2023

    Nationally in 2022, the school participation rate was 97.3 per cent for Australian children aged 15 years (down from 98.1 per cent in 2021). In 2022, the rate decreased to 90.7 per cent of 16 year olds and 80.4 per cent of 17 year olds. Data for 15-19 year olds by single year of age and totals are in table 4A.4.

  12. Productivity Commission report on Australia's education future

    "The Productivity Commission's report has challenged a number of the assumptions underpinning the Job-ready Graduates package. This analysis will provide useful input to the Accord discussion. "Australia needs a strong university system that delivers in our national interest, and we look forward to working with the Government to achieve ...

  13. Productivity Commission's Report on Government Services in education

    Data from the Productivity Commission's Report on Government Services in childcare, education and training, released on 5 February 2024, has prompted calls for a fairer system where all public schools are fully funded. ... The Australian Education Union (AEU) says the new figures - showing private school funding increasing at almost twice ...

  14. Productivity Commission (2011

    The New Zealand Productivity Commission was an independent Crown Entity that operated between April 2011 and February 2024. The Commission's inquiries, research and corporate documents have been re-published here on the Treasury website. The Commission was established by the New Zealand Productivity Commission Act in December 2010 and disestablished by the New Zealand Productivity Commission ...

  15. Productivity Commission inquiry

    About the inquiry. On 9 February 2023, the Australian Government tasked the Productivity Commission to conduct an inquiry into Australia's ECEC system. The draft report was delivered on 23 November 2023. The final inquiry report was handed to government on 28 June 2024. The release of the final report by the government is the final step in ...

  16. Productivity Commission inquiry to consider universal early education

    The Australian Government is taking the next step in considering how to build an affordable, accessible, high quality, universal early education system. Today the Government has announced that Professor Emerita Deborah Brennan AM will co-lead a Productivity Commission Inquiry into Australia's early childhood education and care (ECEC) system.

  17. Report on Government Services

    The Productivity Commission today released the Report on Government Services 2024. The report shows how governments have performed in the delivery of 17 important services including: Government expenditure on these services was approximately $348 billion for 2021-22 - around 70% of government recurrent expenditure.

  18. Home

    The Productivity Commission acknowledges the Traditional Owners of Country throughout Australia and their continuing connection to land, waters and community. We pay our respects to Aboriginal and Torres Strait Islander Cultures, Country and Elders past and present.

  19. Productivity Commission inquiry into early childhood education and care

    Further consultation on the draft report, including public forums, will occur in early 2024. The final report will be published by 30 June 2024. To read the draft report and submissions and for further information on the next round of consultations, visit the Productivity Commission website.

  20. National School Reform Agreement

    An annual report outlines Education Ministers' progress in implementing the NPIs against agreed milestones, as detailed in Schedule B of the National Agreement. The 2019, 2020 and 2021 Annual Reports on progress in implementing the national policy initiatives are published on the department's website. Productivity Commission Report

  21. Next National School Reform Agreement

    The second is a comprehensive review of early childhood education conducted by the Productivity Commission. This work will commence in the second quarter of next year. ... Statement on the Productivity Commission report - Review of the National School Reform Agreement Release type: Media Release Date: 20 January 2023 ...

  22. Productivity inquiry (2023)

    The fifth interim report outlined potential ways governments can improve education outcomes to support future productivity. Read From learning to growth. ... The Productivity Commission's second productivity report provides a road map, focusing first on the high-impact low-cost reforms. Some are quick and others will take time and planning.

  23. Productivity Commission set to lead power market reforms

    The Productivity Commission is expected to be asked within weeks to overhaul how power generators are paid to supply the National Electricity Market, to ensure enough clean and firm energy is ...

  24. PDF Submission to the Quality Initial Teacher Education Review

    The Productivity Commission (the Commission) is pleased to make this submission to the Quality Initial Teacher Education (QITE) Review. The Commission is the Australian Government's independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians.