Girton Grammar School may "be compelled" to look at other methods to keep the school financially viable if changes to payroll tax are introduced, according to the school principal.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Programs, classes, staffing levels and school fees will all come under the microscope as the school faces a big tax bill in the coming years.
In a new report, the Parliamentary Budget Office estimates another 18 Catholic and independent schools will join the current list of 60 to lose their longstanding exemption to payroll tax.
Girton Grammar School is one of those 18 additional schools set to become liable to payroll tax by 2029 as their income per student will pass the $15,000 threshold.
The analysis, requested by opposition education spokeswoman Jess Wilson, suggested their additional schools will raise an extra $26.9 million in revenue for the state over that span.
School programs under threat
Girton Grammar School principal Dr Emma O'Rielly said any potential changes to payroll tax could force the school to re-examine it fees and programs.
MORE NEWS:
"If the changes to payroll tax implemented by the state government were to impact Girton in the future," she said.
"We would be compelled to explore strategies to ensure our school remains financially sustainable as we continue to deliver a unique educational experience within the Bendigo region.
"This may involve a careful review of our services, programs, classes, staffing and school fees."
There are around 60 schools on the list who may no longer be exempt for payroll tax, going by the $15,000 per-student-a-year yardstick.
Other regional private schools which may be affected are located in Ballarat and Shepparton.
Dr O'Rielly said the school offered the best education opportunities to its students.
"Girton aims to provide choice and opportunities to families within our region," she said.
"Many of whom come from diverse socio-economic backgrounds and work hard to afford our fees because of their high aspirations for their children's education."
She said the school would "continue to work closely with Independent Schools Victoria" who are advocating for other private and independent schools.
Government keen to pay down state debt
The May state budget flagged about 110 non-government schools would lose their payroll tax exemption from July next year, in a move to bank $422.2 million over the forward estimates to help pay off the state's COVID-19 debt.
The list was whittled down the list to 60 after backlash from the sector, leaving a $100 million hole in the budget.
The Victorian government committed to assess private schools against the $15,000 threshold each year until at least the start of 2029, rejecting calls for it be indexed to annual inflation.
READ NOW:
Treasurer Tim Pallas maintained locking in the threshold gave schools more certainty and played down the significance of more schools being captured by the tax.
"There will be more schools added as, over time, there is appreciation in the fees," he told reporters at state parliament on Wednesday.
"But that's a relatively modest increase out of the 667 (schools) who are not affected."
The Victorian opposition has expressed concern schools could pass on the cost of their payroll bill to parents and pledged to scrap the tax if elected in 2026.
"Labor's schools tax is an unfair and punitive tax on educational choice and opportunity," Ms Wilson said.
Victorian government schools are not exempt from payroll tax but no other state or territory takes payroll tax from non-government schools.
- with AAP
Digital subscribers now have the convenience of faster news, right at your fingertips with the Bendigo Advertiser app. Click here to download.
