Only private will do for the wealthy

Wealthy families are increasingly choosing private and Catholic schools for their children's education. Source: The Daily Telegraph

Wealthy families are increasingly choosing private and Catholic schools for their children's education. Source: The Daily Telegraph

WEALTHY families are deserting the public education system, with poorer students making up double the number of wealthy children at Australia's government schools.

This privilege exodus is most pronounced in high school, with more than 75 per cent of the highest earning families enrolled in independent and Catholic schools, according to analysis of 2011 census data.

The research shows a dramatic social shift during the past 25 years, with low and high income families equally represented at state schools in 1986.

''In contrast, a quarter century later in 2011, the differences are very marked: the government sector has almost twice the proportion of students from low income families relative to the proportion from high income families,'' said report author Barbara Preston.

In some states (Tasmania and South Australia) the proportion of students from low income backgrounds in government education is as much as four times higher than that of wealthy families.

Separate analysis of data from the My School website shows that not only do private school students attract 25 per cent more income than their public counterparts, they enjoy a higher rate of increase in government funding.

Private schools also outperform the other sectors and enjoy smaller class sizes than government schools, which have seen an increase in the student to teacher ratio.

The research also confirms the middle ground held by the Catholic education system, which has more wealthy than poor students, but mainly caters for children from medium income families.

Education experts agree higher concentrations of disadvantaged children hurt student performance, with a ''drag down'' effect felt across the school.

The report comes during intense focus on school funding, with the Federal Government struggling to push through its Gonski reform package at next week's COAG meeting.

''These findings highlight the importance of delivering funding reform to the address disadvantage and deliver money to where its needed most,'' said Angelo Gavrielatos, president of the Australian Education Union, which commissioned the report.

There are also stark differences across Australia, with wealthier states far more likely to enjoy a better social mix in their schools.

Tasmania and South Australia have the lowest family incomes and the widest social disparity, with Tasmanian school students more than two and a half times as likely to have low family incomes as high family incomes.

Western Australia and the Australian Capital Territory have the highest overall family incomes and the least social disparity.

New South Wales, Victoria and Queensland sit near the average, with around twice as many poor students than wealthy kids at public secondary schools.

The report also states access to high speed broadband is a significant advantage for students, and enjoyed by 94 per cent of students from high income families compared with just 68 per cent of lower income government primary school students.

To be released publicly today by the Australian Education Union, the research analysed census data from more than a million students whose families provided information about schooling and income in the 2011 census.

Family income was defined as low (less than $1249 a week), medium (between $1250 and $2499), high (more than $2500) and very high (more than $5000).
 

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Absolutely fabulously wealthy

Federal Treasurer Wayne Swan. Source: The Australian

FOR a man who paints himself as a working-class hero, Wayne Swan has a rich man's taste.

The Treasury's register of interests shows he accepted a bottle of 2004 Penfolds Grange, which retails for as much as $630, from the Australian Chinese Business Association in February.

Politicians are allowed to accept gifts valued at under $300 from private or industry sources, but for items worth more, they must pay the difference to the Department of Prime Minister and Cabinet or surrender the gift.

Mr Swan chose to keep the wine and his spokesman said: "The Treasurer paid for the balance of the cost of the gift out of his own pocket."

In the past, he has surrendered Westfield gift vouchers valued over $300 and a food hamper which was donated to the Smith Family.

Mr Swan's splash on expensive wine came after Trade Minister Craig Emerson started a debate about the "fabulously wealthy" as the government prepares a new hit on superannuation in next month's budget.

One think tank leader yesterday said politicians were now paid so much they were "out of touch".

The Australia Institute's Richard Denniss said his organisation believed a family on $120,000 was rich but he said a pay rise last year had put MPs on the very rich end of the income spectrum.

"Clearly if you are going to pay politicians large amounts of money they are going to be out of touch with the way ordinary Australians live. This is true for banking executives who earn $10 million a year," he said.

Mr Swan, who said when the government cut health rebates that people on incomes like his own should not receive the taxpayer-funded incentive, earns $390,627 a year. According to his declaration of interests, he owns his Brisbane home and has a cash management trust.

Prime Minister Julia Gillard earns $495,430 a year, owns her Melbourne home and recently sold her Kingston investment property in Canberra for $615,000.

Ms Gillard will retire with a tax-payer funded pension estimated at $177,000 a year and Mr Swan on $167,000 a year for life.

Blacktown's Liberal mayor Len Robinson said aspirational families resented the government's class warfare and were aiming to reach the income brackets of families in the sights of the government. "The average person in Blacktown would most likely consider anyone on $150,000 a year to be doing really well.

"They would all like to be in that position in a few years' time and they want to provide for themselves," he said.

Labor MP Joel Fitzgibbon said last week a family in Sydney's west on $250,000 could still be struggling and he said coal miners in his Hunter electorate on up to $140,000 a year were not wealthy.

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Wealthy cash in on income boom

Incomes have risen, for those on high incomes. Picture: Thinkstock Source: Supplied

INCREASES in average incomes over the past 20 years have been shared by all, but high wage earners have benefited most, a new report shows.

The Productivity Commission study of income trends in Australia has found average incomes rose from about $800 to $1100 a week in the two decades to 2009-10, expressed as 2011-12 dollars.

On average the increase was 38 per cent since 1988-89.

But the commission said while the gains of the past 20 years had flowed to both high and low income groups, "income has grown faster among high earners than lower earners".

According to the report, pay for the top tier of workers increased by almost 70 per cent from just under $2000 to around $3200 a week (in 2011-12 dollars).

The inequality was attributed partly to differences between the average earnings of full-time, part-time and self-employed workers, and the faster growth in numbers of part-time workers over the 20-year period.

"The increase in population share of this 'low income' group in total workers moderated the growth of labour income when all employees are considered," the report said.

Over the two decades the number of part-time workers increased by 136 per cent to 3.1 million, while full time workers grew by 43 per cent to 6.6 million, the report said.

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