The Hunter's wealthiest private schools posted financial surpluses of between $1 million and $2 million last year after pocketing as much as $7 million in annual government subsidies.
A Newcastle Herald investigation of Australian Securities and Investments Commission financial reports found Hunter Valley Grammar School recorded the largest profit.
Most schools do not have to declare their surpluses.
Hunter Valley Grammar School posted a profit for the year ending December 31, 2009, of $1.97 million after receiving $8.47 million in fees, $7.3 million in government funding and $308,185 from uniform sales.
Annual fees for a child in year 12 will be $13,284 this year; fees for kindergarten to year 2 will be $6664.
Last year there were 950 students at Hunter Valley Grammar School and 130 staff.
Newcastle Grammar School posted a net surplus of $1.3 million, taking retained earnings to $11 million, as at December 31, 2009.
The school received $11.3 million in fees for the year and $4.8 million in government grants.
Bad and doubtful debts, which include unpaid school fees, cost $187,964, with the school making an overall provision for bad debts of $406,980.
The school had total assets of $41.8 million and debts of $23.7 million, leaving $18 million in equity.
Annual tuition for a year 12 student this year will cost $17,350; kindergarten will cost $10,440.
A NSW Department of Education and Training spokesman declined to reveal how much the region's public schools received, but said recurrent funding amounts would be on the My Schools website this year.
NSW Greens MP John Kaye said the state and federal governments were financing "inequality" and there were no public schools in the Hunter pocketing surpluses nearing $2 million.
"These [private] schools are operating at such levels of luxury that they can afford to retain a surplus while public schools are operating hand-to-mouth," Mr Kaye said.
"The government needs to recognise public schools and divert funding away from private schools that are doing extremely well."
Hunter Valley Grammar School principal Paul Teys said he believed in transparency in school funding, and the same information should be made available for all schools - private and public.
Mr Teys said about 75 per cent of his school's costs went on salaries.
"We have to fund all our future capital development and that is what the surplus is used for," he said.
"If you don't prepare for the future you get an enormous capital bill and provide a poor level of service to fee-paying parents which would make the school not competitive in the marketplace."
Only schools that are registered as not-for-profit companies limited by guarantee must lodge financial statements with ASIC to comply with the Corporations Act.
Bishop Tyrrell Anglican College and most of the Hunter's other private schools do not have to lodge statements because they are covered by acts of Parliament, including one that covers schools associated with the Anglican Church.
Belmont Christian College reported a surplus of $189,614 after earning $2.6 million in fees and $6.2 million in government funding.
Hunter Christian School made a profit of $59,695, compared with a loss of $74,907 the previous year.
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