A family with children at a Melbourne private school is facing a legal battle over almost $300,000 in unpaid school fees, as cost-of-living pressures raise concerns that more families will be pushed to the brink.
“Any step we take to recover outstanding debt owed to the college is done as an absolute last resort.” Credit Clear debt collecting agency chief executive Andrew Smith, whose business handles accounts for 30 of Melbourne’s private schools, said 250 “active Victorian accounts” had been referred to it, totalling about $3 million in debt.
He said administrations and liquidation had spiked dramatically. In Victoria, there had been a 39 per cent increase in cases to 1476 in the financial year ended June 30, compared to the previous year. Smith believes that with such high fees, parents could quickly end up with large debts if schools did not intervene early.