Scrap the tax on learning
The payroll tax on non-government schools doesn’t add up.
It should be scrapped.
Media releases
The time is right for the Victorian Government to reconsider imposing payroll tax on non-government schools, says Independent Schools Victoria (ISV).
Monday 27 May 2024
The time is right for the Victorian Government to reconsider imposing payroll tax on non-government schools, says Independent Schools Victoria (ISV).
ISV Acting Chief Executive Meg Hansen urged the government to rethink the tax in light of concerns among government MPs, continuing uncertainty in schools about their tax liability, and the government’s willingness to grant payroll tax concessions to doctors.
‘The government needs to rethink its rushed and unprecedented decision to tax schools,’ Ms Hansen said.
‘We now know that a government MP, Mr Tim Richardson, the Member for Mordialloc, repeatedly raised concerns about the impact of the tax on an Independent school in his electorate,’ she said.
‘Mr Richardson is not alone in expressing unease about the impact of the tax on aspirational families. We understand his concerns are also shared by members of cabinet.’
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Thursday 2 May 2024
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
A tax on families: videos
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.
PBO Report
The Victorian Parliamentary Budget Office (PBO) has prepared a report on the likely impact of payroll tax on additional non-government schools that are likely to become liable for payroll tax by 2029.
18 October 2023
The Victorian Parliamentary Budget Office (PBO) has prepared a report on the likely impact of payroll tax on additional non-government schools that are likely to become liable for payroll tax by 2029 as their fees rise above the $15,000 threshold.
The report, prepared at the request of the shadow education minister, Ms Jess Wilson, estimates that 18 additional schools will be liable for the tax by then. Fifteen of these are Independent Schools.
In comments to the media, ISV said:
‘This independent estimate of schools that will be liable for the tax by 2029 includes schools serving the needs of hard-working aspirational families, with no or extremely limited capacity to absorb it.
‘The only way to avoid the tax is to not increase fees, even by a modest amount. This is impossible, given rising cost pressures and the need to maintain services for students.’
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.’
‘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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