Scrap the tax on learning
The payroll tax on non-government schools doesn’t add up.
It should be scrapped.
Media release, 1 August 2023:
Latest payroll tax decision adds to anxiety for schools, parents
A sudden decision by the Victorian Government has added to confusion, anxiety and uncertainty for families with children at Independent schools over the imposition of payroll tax.
The government’s surprise announcement that schools’ liability for the tax would be reviewed annually comes just five weeks after it said the list of schools trapped by the tax would remain fixed for five years.
The government said this would give schools certainty.
As late as today, a government spokesman was quoted in The Age as saying: ‘Schools currently declared exempt from payroll tax remain exempt until the next review of the threshold in 2029.’
Yet today the government has announced to the media that while the threshold for paying the tax would remain fixed until 2029 – currently arbitrarily set at annual school fees of $15,000 and above – schools’ liability would be assessed it annually.
This means that some schools which thought they would not have to pay the tax, will now have to from July next year.
Write to your MP
Ensure your voice is heard
If you have concerns about the Victorian Government’s decision to collect payroll tax from Independent schools, we can help you send a message to your local Member of Parliament.
Click the link below, complete the online form and we will ensure that your message reaches your local member.
A tax on families
Shani Martin,
Lowther Hall Anglican Grammar School parent
Shani Martin’s daughter Aria was born with a disability. The early intervention that Lowther Hall Anglican Grammar School provides has been integral to her learning.
But Shani and her husband are already at full working capacity.
If the payroll tax is passed on to parents, Shani says they won’t be able to afford the type of learning environment that Aria needs.
Rashmi,
Presbyterian Ladies' College parent
“Unlike the public perception that only rich people send their kids to Independent schools, that’s not the case for us… We know many parents who are in similar positions.”
Rashmi sends his kids to Presbyterian Ladies College and he and his wife work hard to make sure they can support their kids through Independent schooling.
If the payroll tax is passed on to parents, many will have no choice but to remove their kids from Independent education and put them into public schools that are already struggling.
Media releases
Latest payroll tax decision adds to anxiety for schools, parents
Tuesday 1 August 2023
Learning tax hit list targets 54 Independent schools
Thursday 29 June 2023
A huge blow for families as school payroll tax bill passes
Wednesday 21 June 2023
Schools left in the dark over learning tax
Tuesday 13 June 2023
Independent Schools Victoria's opposition to payroll tax remains unchanged
Friday 2 June 2023
Independent schools welcome Opposition’s stance on learning tax
Tuesday 30 May 2023
Shock budget tax alarms Independent schools
Tuesday 23 May 2023
ISV Perspectives blog
The learning tax must go
‘The imposition of payroll tax on non-government schools doesn’t add up. It should be scrapped,’ writes ISV Chief Executive, Michelle Green.
‘Since payroll tax was first adopted in Victoria over 50 years ago, non-government schools have been exempt. That’s because Independent schools are not-for-profit organisations that provide an essential service: a sound education that allows families to choose a school that matches their values and their aspirations for their children.
‘The Victorian Government’s decision to impose payroll tax on these schools is unprecedented. No other state does it. It will apply to schools the government arbitrarily declares as ‘high fee’, using a formula that only the government knows.’
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about the payroll tax
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