Icac inquiry raises questions over whether taxpayer funds were used in alleged illegal political donations

Australia's Independent Commission Against Corruption (ICAC) is investigating allegations that Catholic Schools NSW made undeclared political donations exceeding legal caps. The probe raises questions about whether taxpayer funds allocated to schools were improperly used for political purposes, such as "branch stacking" to recruit or renew party members.

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governments need to check taxpayer funding was “being spent according to its purposes” and not funnelled into political donations.

Trevor Cobbold, an education funding expert and advocate, urged federal and state governments to conduct a joint audit of Catholic Schools NSW alongside the ICAC investigation. He highlighted that nearly 80% of funding for Catholic schools comes from public sources, totaling approximately $3.8 billion in 2024. Cobbold stressed that governments must ensure taxpayer money is "being spent according to its purposes" and not diverted to political donations.

Cobbold argued that the Commonwealth and New South Wales education departments have specific responsibilities to oversee the use of public funds. "They have specific responsibilities that are not those of Icac," he said, emphasizing the need for a joint audit to ensure compliance. He added that the allegations point to broader issues regarding how school organizations account for taxpayer funding.

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The commonwealth department of education, the federal minister for education, and the New South Wales minister for education can’t stand aside as if they are uninterested observers.

Chris Bonnor, a former principal and education policy author, called for more stringent monitoring of compliance by private schools with regulations. He noted existing "unequal regulations and unequal accountabilities" between public and private sectors.

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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.

New South Wales Premier Chris Minns stated that his government would wait for the ICAC investigation to commence and report its findings before considering any audit of Catholic Schools NSW. He indicated no immediate plans for such an audit, preferring to let the corruption watchdog complete its work.

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It does raise broader issues about how school organisations account for taxpayer funding.