ICAC inquiry raises questions over use of taxpayer funds for alleged illegal political donations
Australia's corruption watchdog investigates whether Catholic Schools NSW used public money for illegal political donations to the Liberal Party, sparking calls for audits and stricter oversight.
The Independent Commission Against Corruption (ICAC) is investigating allegations that Catholic Schools NSW made political donations to the Liberal Party in amounts that exceeded donation caps and were not declared. It is alleged that the donations were arranged by the organization's chief executive, Dallas McInerney, as part of a practice known as branch stacking – recruiting or renewing party members.
Trevor Cobbold, a former Productivity Commission economist and convenor of Save Our Schools, noted that nearly 80% of funding for Catholic schools comes from federal and state governments – approximately A$3.8 billion in 2024. Catholic Schools NSW is a registered charity, and if found to have a disqualifying political purpose, it risks losing its charitable status and tax exemptions.
Cobbold called for a joint audit by federal and state education departments, arguing they cannot stand aside as uninterested observers. He stressed that they have a responsibility to ensure public money is spent according to its purposes.
Chris Bonnor, former president of the NSW Secondary Principals Council, said the allegations demand more stringent monitoring of private schools' compliance with regulations.
NSW Premier Chris Minns said his government would wait for the ICAC investigation to begin and ruled out an immediate audit. Liberal leader Kellie Sloane previously stated that no stone should be left unturned but expressed trust in ICAC.
The NSW Greens have called for a separate audit and renewed their push to stop public funding of private schools. The federal education department and the NSW Education Standards Authority (NESA) declined to comment, citing the active investigation.
The ICAC probe is part of a broader investigation involving several individuals linked to the Liberal Party, including McInerney, property developer Jean Nassif, and two brothers of former premier Dominic Perrottet. All have denied wrongdoing. McInerney has offered to stand aside during the investigation.
