Allegations of Undeclared Political Donations by Catholic Schools NSW
An education funding expert has highlighted concerns following allegations that Catholic Schools NSW made donations to the Liberal party, which are currently under investigation by the New South Wales Independent Commission Against Corruption (ICAC). These allegations underscore the necessity for governments to ensure that taxpayer funds are allocated strictly for their intended purposes and not diverted into political donations.
The ICAC inquiry is examining claims that Catholic Schools NSW made political donations "in amounts that were not declared and exceeded applicable donation caps." It is alleged that these donations were orchestrated and authorized by Dallas McInerney, the chief executive of Catholic Schools NSW, with the intent to recruit or renew party members, a practice commonly referred to as "branch stacking." Catholic Schools NSW serves as the governing body for nearly 600 schools.
Calls for Joint Government Audit Amid Serious Allegations
Trevor Cobbold, convenor of the advocacy group Save Our Schools and a former economist with the Productivity Commission, has urged both federal and state governments to collaborate with ICAC in conducting a thorough audit of Catholic Schools NSW in light of these serious allegations.
"The commonwealth and state governments should act alongside the ICAC investigation ‘in the face of very serious allegations’ to jointly audit Catholic Schools NSW," Cobbold stated.
Cobbold noted that approximately 80% of funding for Catholic schools is sourced from federal and state governments, amounting to around $3.8 billion in 2024. As a registered charity under the Australian Charities and Not-for-profits Commission (ACNC), Catholic Schools NSW risks losing its charitable status and associated tax exemptions if found to have engaged in activities with a "disqualifying political purpose."
"The commonwealth department of education, the federal minister for education, and the NSW minister for education can’t stand aside as if they are uninterested observers," Cobbold emphasized.
"They have specific responsibilities that are not those of ICAC … to ensure that public money is being spent according to its purposes and in order to do that they need to have a joint audit of the books of Catholic Schools NSW."
"It does raise broader issues about how school organisations account for taxpayer funding."
Expert Advocates for Enhanced Compliance Monitoring
Chris Bonnor, former president of the NSW Secondary Principals Council and author of Waiting for Gonski: How Australia failed its schools, remarked that these allegations highlight the need for much stricter monitoring of private schools’ compliance with regulations.
"Along with unequal obligations on the public and private sector, there’s been unequal regulations and unequal accountabilities," Bonnor said.
Government Response and Political Reactions
On Tuesday, NSW Premier Chris Minns stated that his government would await the commencement of the ICAC investigation before considering any audit of Catholic Schools NSW.
"We don’t have any plans to do it … I think we should wait for that to at least begin," Minns said in Sydney. "I think we should wait for it to report both to parliament and other independent bodies."
A spokesperson for NSW Liberal leader Kellie Sloane declined to comment on Tuesday. Previously, when questioned about the possibility of public funds being used in the alleged donations, Sloane remarked,
"No stone should be left unturned."
"But these are very serious allegations, and I trust the ICAC to do its work," she told reporters earlier this month.
The NSW Greens have called for a separate audit of Catholic Schools NSW and renewed their campaign to end public funding for private schools.
"The idea that public funds going to Catholic schools and being misused and misappropriated is outrageous. Any school that is alleged to have engaged in corrupt conduct should have all public funds denied until the investigation is conducted," said Tamara Smith, the NSW Greens education spokesperson.
Official Statements from Education Authorities and ACNC
In separate statements to Australia, the federal education department and the NSW Education Standards Authority (NESA) declined to comment on the allegations.
A NESA spokesperson said,
"As these matters are the subject of an active ICAC investigation we are unable to comment."
The Australian Charities and Not-for-profits Commission (ACNC) issued a statement acknowledging awareness of the ICAC’s investigation into claims concerning Catholic Schools NSW Limited.
"The ACNC will monitor the ongoing ICAC investigation," the statement said.
Advocacy for Concurrent Inquiries
Cobbold suggested that multiple inquiries into the allegations could proceed simultaneously, citing the example of the royal commission into antisemitism and social cohesion occurring concurrently with the criminal investigation of the Bondi terror attack.
"Inquiries in the past, take the royal commission, they can overlap. One organisation is meeting its legal responsibilities and the other organisation should be meeting theirs, and by that I mean the NSW and commonwealth governments … and the charities commission," Cobbold explained.
Details of the ICAC Investigation and Individuals Involved
The ICAC probe is focused on allegations against individuals connected to the Liberal party, including Dallas McInerney, property developer Jean Nassif, and Jean-Claude and Charles Perrottet, brothers of former Liberal premier Dominic Perrottet. All have denied wrongdoing. Dominic Perrottet himself is not accused of any misconduct.
McInerney was appointed as the inaugural chief executive of Catholic Schools NSW in 2017. He is a former member of the Liberal state executive and is known as a factional ally of federal Liberal leader Angus Taylor, who is also not implicated in the investigation.
On 2 July, McInerney issued a statement offering to stand aside to allow Catholic Schools NSW to continue its work uninterrupted.
"I have offered to stand aside to allow the work of Catholic Schools NSW to continue its important mission," McInerney said.
Catholic Schools NSW has been contacted for comment.
