Forcing non-government schools to publicly disclose all sources of funding would inflame ''divisive'' and ''ideological'' tensions between the private and public school sectors, a federal Senate committee has been told.
The Federal Labor Government wants to make Commonwealth funding contingent on non-government schools declaring all extra income from private donations, scholarships and fund-raising.
But the Association of Independent Schools of Victoria says the information could be distorted in the public press.
Association deputy chairwoman Heather Schnagl said, ''I can just see the headlines ... 'So-and-so school has this amount of money to spend on each individual student.'''
Dr Schnagl said private schools were happy to disclose funding to the Government on a confidential basis, but she could not see any public good being served by putting all sources of funding on the front page of a newspaper. There was already ''an emotive debate against non-government schools that we get too much government money''.
The Australian Council of Christian Schools said there were great risks associated with publishing funding data.
The council's executive officer, Robert Johnston told the committee, ''The issue of public-private divide is not going to go away by the publication of data ... If anything, that's going to pander to those who are philosophically opposed to non-government schools.''
Mr Johnston said it would draw private schools into time-wasting and aggravation that were much more divisive than just getting on with the job by forcing the sector to defend its right to exist. Disclosing funding could also result in companies being less willing to donate.
But Labor committee chairman Gavin Marshall said to argue against funding disclosure was to argue against any form of transparency.
''You're suggesting that information should be kept from the public in a public debate?'' he said.
Australian Education Union president Angelo Gavrielatos said public schools had to disclose all funding and the same rules should apply to non-government schools.
The Opposition's junior education spokesman Brett Mason said Labor was ''sneakily'' trying to bring back the schools ''hit list'' and penalise success.
Later, an official from the Department of Education, Employment and Workplace Relations told the committee the push for greater transparency was required so the Commonwealth could target resources where they were needed most.
The manager of the department's national education group, Carol Nicoll, said, ''Without a declaration of that information publicly, comparisons can't be made.'' AAP