The changes come after four Sydney schools were told to repay almost $47 million in government funding after being declared for profit or non-compliant in the past decade.
Private schools will be given new rules governing how they can spend public funding to limit costly legal challenges that have already resulted in $47 million of misspent money being returned to the state government.
Tom Alegounarias, the former chair of NESA and one-time president of the Board of Studies who led the review, said the state government and schools were “ending up in too many legal disputes arising from a lack of clarity with the legislation”. The recommendations were welcomed by independent and Catholic school associations, and are in line with measures proposed by private school principals in their submissions.The Association of Independent Schools of NSW argued there was “an inherent conflict of interest” in the NSW Education Department deciding what is acceptable expenditure by private schools. That view was echoed by the head of Ascham, Andrew Powell, in his submission.
“Schools should not suffer from persistent anxiety that such use could constitute a breach of section 83c because it doesn’t conform to a narrow ‘cookie-cutter’ model the department considers is for the operation of the school,” George said. The school was also declared non-compliant after a department investigation into business class flights taken by the headmaster and his wife to attend a British rowing regatta.not-for-profit advisory committee that was set up in 2014NSW private schools that receive state government funding must operate on a not-for-profit basis, with the act stating a school’s income and assets must only be used for the operation of the school.
The review makes sixteen recommendations to improve the regulation of non-government schools in NSW. Guidelines on trusts and foundations have been included, with rules that schools can’t move resources into a trust or foundation that is run independently.
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