Victoria's private schools will be taxed more from July 1, 2023, as the government imposes payroll tax on non-government schools earning over $15,000 per student. This shift will replace previous tax exemptions, meaning some schools may pay more in taxes than they receive in funding. Elite institutions like Haileybury may be significantly affected, prompting schools to raise fees. The opposition argues that this tax undermines non-government schools' contributions to educational choice, as they relieve pressure on the public education system.
"Dozens of schools are now having to pay the Allan government millions of dollars just to continue their much-needed work providing education to Victorian children," Opposition education spokeswoman Jess Wilson told The Age.
"Some private schools will be charged more in taxes than they receive in funding, which raises concerns about their financial viability and capacity to provide quality education."
"Only 8 percent of schools, including elite institutions like Scotch College and Xavier, will be impacted by the new payroll tax, prompting some to raise fees to offset costs."
"The previously exempt non-government schools will now face payroll taxes, which the opposition argues undermines their role in providing essential educational alternatives in Victoria."
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