The fee threshold at which private schools will be charged payroll tax has been set at just above $8000, school leaders have been told, as the Andrews government prepares to push through parliament its proposed removal of the long-held tax exemption.
Treasurer Tim Pallas speaks last week about the latest budget. The loss of payroll tax to high-fee non-government schools is to net the state $135 million in 2024-25. “They are schools with hard-working, middle-class families who now face fee increases or cuts in programs,” he said. Independent Schools Australia said Victoria had become the first state or territory to seek to revoke non-government schools’ payroll tax exemption. The unprecedented move has raised alarm bells across the country, Graham Catt, the chief executive of the national peak body, said.
Several school leaders have spoken out against the tax change since it was announced on budget day, either publicly or to their school communities. “At the very least, it would impact our schools’ current curricular and co-curricular offerings and negatively impact staffing levels to continue to deliver value for money high-quality educational programs.”