Is It Time to Start Planning for Private School Fees?

Key Takeaways

• The average cost of private education in NSW is over $400,000 per child from Kindergarten to Year 12.
• Term 3 is open day season—making now the ideal time to start budgeting and planning.
• Education savings plans, investment bonds, and family trusts are common ways to prepare financially.
• Starting early, even with small amounts, can take pressure off future cashflow.
• A personalised plan can help align your school goals with your broader financial strategy.

Why This Matters

As school open days roll out across NSW this term, many parents are seriously considering private or independent school options. But with those choices come significant long-term costs.

According to the Futurity Investment Group, the total cost of a private education in NSW (including tuition, uniforms, tech, excursions and more) now averages:

• $18,597 per year in primary school
• $34,090 per year in high school

That’s over $412,000 per child across 13 years of education. And for families with two or more children? Multiply accordingly.

These numbers don’t even factor in rising living costs or future inflation—meaning the sooner you start planning, the more options you’ll have.

What Are Your Options?

There’s no one-size-fits-all approach, but here are a few strategies many families are using to prepare for education expenses:

1. Education Savings Plans & Bonds

Specialised investment products like education bonds (e.g. Futurity Education Bonds) offer a tax-effective way to save for school fees.

• Investment earnings are taxed at up to 30% internally, but may be refunded if used for approved education expenses.
• You can nominate a beneficiary (your child) and retain control over the funds.
• Some allow regular contributions or lump sum deposits, giving flexibility for different family budgets.

These plans are especially attractive for families who don’t qualify for means-tested government support but still want a structured savings tool.

2. Family Trusts

If you're already using or considering a family trust, this structure may help with:

• Income splitting (distributing income to lower-taxed beneficiaries)
• Investing for long-term education goals
• Keeping assets in the family while maintaining control

However, trusts do come with setup costs, ongoing compliance, and legal obligations—so they’re best suited for families with investment or business income to manage alongside education planning.

3. Dedicated Investment Accounts

Some families opt for a simple investment portfolio in their own names or in a child’s name (with care around tax implications).

• This can include ETFs, managed funds, or term deposits earmarked for education.
• You maintain flexibility but will be taxed at your marginal rate unless structured carefully.

4. Offset & Redraw Strategies

If you’re not ready to lock away money in a separate structure, consider building up funds in your mortgage offset or redraw account as a flexible education buffer.
You won’t earn investment returns, but you will save on interest—and can withdraw when needed for school fees.

It’s Not Just About Tuition

It’s easy to focus only on tuition fees, but remember that the hidden costs add up too:

• Laptops, iPads and uniforms
• Camps and excursions
• Sports programs and music lessons
• Commuting and transport
• Voluntary building funds and levies

Having a realistic view of the full cost of education is just as important as choosing the right school.

Final Thoughts

Whether you’re planning for private high school, selective education, or just want more options down the line, Term 3 is the perfect time to review your education savings strategy.

There’s no “perfect” product—but there is a right plan for your situation.

We can help you forecast future school costs and structure a savings plan—using a mix of investment tools, tax strategies, and flexible options that suit your cashflow and goals.

Reach out to FinPeak Advisers to get started. Because the sooner you plan, the more confident you’ll feel when the time comes to enrol.

Next Steps

To find out more about how a financial adviser can help, speak to us to get you moving in the right direction.

Important information and disclaimer

The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide.

FinPeak Advisers ABN 20 412 206 738 is a Corporate Authorised Representative No. 1249766 of Spark Advisers Australia Pty Ltd ABN 34 122 486 935 AFSL No. 458254 (a subsidiary of Spark FG ABN 15 621 553 786)