Brindabella Christian College in Canberra receives $10m a year from the federal government but owes the tax office $8m and has been unable to pay teachers’ wages.
At Senate estimates “Education department officials were asked to explain how a private school in Canberra, Brindabella Christian College, could have recieved a $927,000 government payout at the beginning of February, but two weeks later had not been able to pay staff,” The Financial Review reports.
Brindabella is a non-denominational private school and a member of Christian Schools Australia. Over 1200 students were enrolled in 2024.
“The school had previously not paid their staff superannuation entitlements but spent $1 million on a robot dog. It is also in dispute with the Australian Taxation Office over unpaid debts of $8 million.”
Meg Brighton, Education Department deputy director in charge of schools, is quoted in The Australian: ““In 2023, the AAT imposed a large range of conditions on the school.
“Our compliance action with the school has been going on for quite some time. There have been concerns raised about … the school’s ability to meet its obligations.’’
Brighton revealed to the Senate estimates hearing that the Education Department has given notice of the department’s intention to commence a revocation of the approved authority status of its proprietor, Brindabella Christian Education Ltd. But Brighton has said she is not seeking to close the school. However, this month the ATO made an application in the Federal court to wind-up the school.
Riotact, a local news website that has been tracking the Brindabella saga, reports “Brindabella Christian School board chair Greg Zwajgenberg has accused the ACT Government of plotting to take over the embattled private school.” According to Riotact, Zwajgenberg bases this claim on a staff member overhearing a conversation with a “government employee on an adjacent verandah. ‘The visitor spoke as someone who worked in an (unidentified) ACT department, boasting of the imminent closure of Brindabella,’ the email reads.”
Zwajgenberg raised the spectre of a controversial government takeover of the school. “We are now seeking assurances about Brindabella not being another Calvary Hospital and we will communicate our findings.”
Problems at the school appear to date back to series of principals leaving since 2015 and the closuire of the Parents and Friends association in 2019.
The School’s financial issues were addressed in a letter from Zwajgenberg to parents reported in Riotact.
“He blamed the original PAYG debt on a previous chief financial officer who failed to disclose ”critical financial information” to the board, and left after being questioned about it in a board meeting.
“He said the debt was actually $4.8m, as stated at a 2023 Administrative Appeals Tribunal (AAT) hearing, plus a $450,000 penalty and accumulated interest.
“The penalty was imposed following a 2024 ATO audit of the college’s superannuation payments, … Mr Zwajgenberg said.
“This had drawn attention to the then CFO’s PAYG actions in 2022.
“The AAT hearing had heard that a payment scheme had been set up in January 2022 when the debt was $3m but was only complied with until May of that year.
“By the end of 2022, the debt had grown to $4.8m and the school had agreed to pay it back at $130,000 a month.
“But on 18 February, the ATO applied to the Federal Court to wind up BCEL and appoint a liquidator after the school failed to pay the debt within 21 days. The ATO is also seeking costs. A hearing is set for 26 March.”