Building larger schools could save taxpayers up to $1.5 billion as Victoria is projected to need almost 1000 new kindergartens and government schools in the next decade to keep up with demand.
The state will need about 900 new kindergartens, 60 new government schools and 20 per cent more space for TAFE by 2036, according to Infrastructure Victoria's Learning for Life report.
While private and not-for-profit providers can meet some of the need for kindergartens, Infrastructure Victoria said the government must step up to fill in investment gaps.
The north, west and southeast growth areas of Melbourne would benefit the most from this investment.
Victoria will need 138,000 more kindergarten places by 2036 and that could cost up to $17 billion if the government delivers all 900 new facilities for three- to four-year-olds.
But depending on the level of private investment, this could cost between $6.1 billion to $11 billion.
Most demand for government schools will be in Melbourne's fast-growing communities with an estimated 10,000 to 17,000 enrolments by 2036 in Wyndham and Melton in the west, Whittlesea in the north and Casey in the southeast.
The state should also expand existing schools in Melbourne's inner and middle suburbs and begin new education deliveries by 2030, Infrastructure Victoria chief executive Jonathan Spear said.
"Our modelling shows the best way to deliver the schools we will need beyond 2026 is to build larger new schools and expand existing schools where there is land to do so," he said.
Building larger new schools could cost $5.9 billion, a saving of $1.5 billion, compared with the government's historical approach to delivering school infrastructure.
Strong demands for TAFE will require the government to find an extra 125,000 square metres, or 20 per cent, of space by 2030 for Melbourne's west, north and southeast growth areas.
