The Howard government introduced the controversial "socio-economic status" or SES funding model in 2001.
It means that private schools are funded by the taxpayer according to the ability of parents in the local area to pay the fees.
It was intended that private schools in the wealthiest areas receive the smallest portion of about $6 billion in subsidies.
But the Fairfax press today reported that a secret Education Department report found the funding model leads to entrenched inequity.
It reportedly found that many private schools are being overpaid because of a promise that under the SES model they would not receive less money than they did in the past.
The report is said to recommend that some private schools gradually have their government funding reduced.
Angelo Gavrielatos, the AEU's acting federal president, agrees that the funding model is distorted.
"Because it provides funding for private schools, not on the basis of the individual wealth of individual parents who have students enrolled at these schools, but rather on the socio-economic status of the whole census area," he said.
"It is corrupt because 60 per cent of private schools are receiving more funding than they would otherwise have received if this distorted model was properly applied."
https://www.abc.net.au/news/2008-01-09/govt-stands-behind-howards-schools-funding-scheme/1007546
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