ABSTRACT Australia has been an enthusiastic embracer of school choice and has one of the highest levels of public funding for non-government schools. The 1996 election of John Howard’s conservative government is a point of interest as it is often framed as a period of political and ideological attacks on public schooling. A key policy move was the abolishment of the New Schools Policy. The New Schools Policy withheld public funds from helping to establish new non-government schools in areas where there was already adequate supply. Using large-scale data sets on supply (number of schools) and demand (enrolment), time-series analysis demonstrates that while the non-government schools have grown (in real and market share terms), the abolishment of the New Schools Policy did not lead to a shock in enrolment numbers. However, the subtle shift from a needs-based to entitlement logic fundamentally altered the landscape of Australian school-based education ever since.