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
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.
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.
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A tax on learning is a tax on families
Concerned about the cost of the payroll tax being passed on to families? Share your concerns on social media, using this image and the #scrapthetax hashtag.Download images to use on social media
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Payroll tax on Independent schools doesn't add up
Think the plan to impose payroll tax on non-government schools doesn’t add up? Share your concerns on social media, using this image and the #scrapthetax hashtag.Download images to use on social media
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.’
Get in touch with ISV
about the payroll tax
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