North Sydney Catholic schools refuse to pay proposed voluntary council rates

Catholic schools in some of Sydney’s wealthiest suburbs have refused a call by one local council to start paying rates. Who’s in the right? Take our poll.

Catholic schools in some of Sydney’s wealthiest suburbs have refused a call by their local council to start paying rates, as students’ families fear they will be the ones to “fork out” the extra cash.

North Sydney councillors, who last year voted to increase rates by more than 87 per cent over two years, requested independent schools in the area and the Australian Catholic University pay voluntary rates, or an “in-kind contribution”, on their property holdings.

The rates would contribute to maintenance of roads, footpaths and open space.

The council has been in a dire financial situation due to surging costs amid the redevelopment of the $122m North Sydney Olympic Pool.

The North Sydney local government area is home to at least six high-fee independent schools, including Wenona, Shore and SCECGS Redlands, and Catholic schools St Aloysius, Loreto Kirribilli and Monte Sant’ Angelo Mercy College.

Loreto Kirribilli is one of the Catholic schools that has been asked to pay voluntary council rates. Picture: Richard Dobson

The Saturday Telegraph can reveal Sydney Catholic Schools (SCS), which recently engaged with the council’s Mayor Zoe Baker, has declined for its schools to pay any optional rates, stating there was no “legal liability” to do so.

“NSW and Commonwealth legislation neither requires nor permits payments of the nature council has suggested,” an SCS spokesman said.

Cr James Spenceley said he had seen responses from Catholic schools in the area saying they were not “in a position” to fork out voluntary rates.

“No schools in the area have volunteered as of yet to contribute, but the rates ultimately allow us to provide a better service to the community,” Cr Spenceley said.

“There’s a nuance compared to other local government areas because our area is quite small and we have so many schools that take up so much land.

“We need to look at alternatives rather than slugging residents with an 87 per cent increase. “Everyone needs to contribute fairly to share the costs of running the area.”

North Sydney councillor James Spenceley said high-fee private schools should pay voluntary rates.

A mother, whose daughter attends Monte Sant’ Angelo Mercy College, said she feared parents would “bear the brunt of the costs”.

“It should not be up to schools in the area to bail out the council from its dire financial situation,” the mother said.

“I’m worried that parents will be the ones who end up having to contribute to these rates via school fees, it’s not right.”

Catholic Secondary Principals Australia executive officer Mick Egan said he was also concerned families would be forced to pay more in school fees.

“This will have a dire impact on the parents,” Mr Egan said.

“Victoria’s payroll tax on Catholic and independent schools caused a change in the balance and the costs there had to be directly passed on to the parents.

“Any change at any level of government will force the costs to be borne by parents and this is not a welcome change.”

Victoria’s state government payroll tax, which came into effect last year, forced independent schools with an income per student of more than $15,000 to pay additional costs.

The changes led to some private school parents paying higher school fees.

A North Sydney Council spokesperson said Ms Baker would be submitting a mayoral minute to the May 12 council meeting advising of the outcome of communication, including further discussions with schools.

The Independent Pricing and Regulatory Tribunal (IPART) will make its determination on North Sydney Council’s proposed rate hike in May 2025.

In 2023, consultants Morrison Low published a report that found rate exemptions for schools and other organisations in NSW cost councils about $270m per year.

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Originally published as North Sydney Catholic schools refuse to pay proposed voluntary council rates